All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under shall first be written off against the Bad Debt Fund and the balance, if any, may be writing of bad debts and losses in multi state cooperative society,  gains in the Reserve Fund and the share capital of the multi state cooperative society.  All other dues and accumulate losses or any other loss sustained by the Multi State Cooperative Society which cannot be recovered and have been certified as recoverable by the auditor may be written off against the Reserve Fund of the multi state society Provided that (a) no bad debts or losses shall be written off without the sanction of general body; (b) before any such bad debts or losses are written off, the cooperative society shall obtain the approval of the Central Register Provided further that the Central Registrar may, while giving provide, impose such conditions as to the recumbent of the Fund and restoration of part or whole of the amount written off Reserve Fund from out of future profits as he deems fit. Provided also that the Board of Directors of a cooperative registered under the Act may write off bad debts not exceeding five per cent of the irrecoverable and bad debts subject to the conditions, namely (a) the writing off of the irrecoverable and bad debts shall be only of debts which have been certified as bad debts by the auditor (b) the writing off of the bad debts shall be permitted only against able and Bad Debt Fund created for this purpose from out of the Bank (c) the total amount written off in a year as bad debts shall not exceed five per cent of the Irrecoverable and Bad Debt Fund. Transactions with non-members. Save as otherwise provided for except with the general or special sanction of the Central Registrar and Registrar of cooperative societies, state cooperative shall enter into any credit transaction with ape than a member unless the bye-laws of multi state society.