Section 7(1) in The Punjab State Aid to Industries Rules, 1936
(1)The security for the repayment of the loan or the price of machinery supplied on the hire-purchase system and all interest due thereon and for the due fulfilment of the conditions of any loan or for the unpaid balance of the cost of the machinery granted under the hire-purchase system shall be as follows :-(a)[ a mortgage on all the fixed assets of the industrial concern, including book debts the premises and machinery, whether existing or to be purchased with the land or any portion thereof, provided that the estimated value of such assets is in the opinion of the Director of Industries not less than 1 ½ times the amount of the loan or the unpaid balance of price of the machinery, together with the personal security of the applicant; or] [Substituted by Punjab Government notification No. 303-I & C- 54/18789/A, dated 3rd April, 1954.](b)a mortgage on immovable property of the applicant or of his surety or sureties, if any, of a value equal in the opinion of the Director of Industries, to not less than 1 ½ times the amount of the loan, or the unpaid balance of the price of the machinery, together with the personal security of the applicant; or(bb)[] [Clause (bb) added by Punjab Government Notification No. G.S.R. 279/P.A.5/35/Section 46/Amd.(5)/56, dated 23rd November, 1965 Omitted by Haryana Notification G.S.R. 50/P.A.5/35/Section 46/Amd.(4)/80, dated 1.5.1980.](c)a charge on any security or securities on which a trustee would be competent to invest trust money under section 20 of the Indian Trusts Act, 1882, equal to not less than 1 ½ times the amount of the loan, together with the personal security of the applicant; or(d)all or any two of the securities mentioned in (a), (b) and (c), above, provided that the gross value of such securities is in the opinion of the Director of Industries, equal to not less than 1 ½ times the amount of the loan, together with the personal security of the applicant and his surety or sureties; if any.(e)[ in the case of loan not exceeding ten thousand rupees, personal security of the applicant and one solvent surety for double the amount of loan rendered to the satisfaction of the sanctioning authority.] [Substituted Haryana Notification No. G.S.R. 51/P.A.5/35/Section 46/Amd.(3)/80, dated 1.5.1980.](ee)[] [Omitted by Haryana Notification No. G.S.R. 50/P.A.5/35/Section 46/Amd.(4)/80, dated 1.5.1980.](eee)[ In the case of loan exceeding five thousand rupees to a small scale Industrial unit, a mortgage on immovable property of the applicant or of his surety of a value equal to the amount of the loan, together with one surety solvent for equal amount of the loan, required to the satisfaction of the Director of Industries or the District Industries Officer concerned as the case may be.] [Inserted Vide Haryana Government Notification No. GSR. 6/P.A. 5/Section 46/71, dated 19.11.1971.](f)[ In the case of an applicant for loan for an amount not exceeding [ten thousand rupees] [Added by Punjab Government notification No. 12368-INC-55/72505, dated the 1th November, 1955.] by a Co-operative Society established, inter alia, with the object of facilitating the operations connected with an industry and duly registered under Punjab Co-operative Societies act, [1961] [Substituted by Punjab Government notification No. G.S.R. 98/P.A.5/35/Section 46/Amd.(6)/66, dated the 22nd April, 1966.], no security shall be required, provided that the liability of the members of the Society in accordance with its bye-laws or the rules made under the said Act, is not less than twice the amount of the loan applied for.](g)[ in the case of loan not exceeding Rs. 1,000/- personal bond, in Form P, rendered to the satisfaction of the General Manager, District Industries Centre/District Industries Officer/Assistant District Industries Officer holding independent charge of the district concerned, as the case may be.] [Substituted Vide Notification No. GSR. 50/P.A. 5/35/Section 46/Amd. 2/80, dated 1.5.1980.](h)[ in case of loans not exceeding Rs. 2,000 applied for by the person belonging to the Scheduled Castes (Harijans), (on their executing a bond) to the satisfaction of the Director of Industries, Punjab, the District Industries Officer concerned or the Assistant District Industries Officer holding independent charge of the District, or the Project Officer (Industries) concerned, as the case may be, provided the loan is granted having regard to the training and experience of the applicant and his actual engagement in the trade, and the second and subsequent instalments are released after verification of the utilization of the instalment or instalments released previously.] [Clause (h) added by Punjab Government notification No. G.S.R. 22/P.A.5/35/Section 46/Amd.(3)/64, dated the 26th September, 1964.](i)[ In case of short term loans, personal security of the applicant, applicants rendered to the satisfaction of the District Industries Officer and the material to be purchased with the loan to be stocked within the charge and supervision of the District Industries Officer concerned at the cost and risk of applicant/applicants. The material so stocked shall be released to the borrower according to his requirements and on his demand against payment in cash or an equivalent amount of loan with interest thereon upto the date of lifting the part or whole of the material] [Inserted vide No. G.S.R. 25/P.A. 5/35/Section 46 Amd.(1)/168, dated 26.3.1968.].(j)[ In case of loans exceeding five thousand rupees, but not exceeding fifty thousand rupees for the purchase of machinery for running [ - ] [Inserted by Haryana Notification No. G.S.R. 25/P.A. 5/35/Section 46 Amd.(1)/168, dated 26.3.1968.] industries in the Industrial Estate of Haryana, personal security of the applicant/applicants and his/their surety rendered to the satisfaction of the Director of Industries, Haryana, a mortgage on the machinery whether existing or to be purchased with the amount of loan or any portion thereof and the material within the charge and supervision of the District Industries Officer concerned at the cost and risk of applicant/applicants and an affidavit in Form 'T' from the surety who is solvent for double the amount of loan sanctioned to the applicant/applicants. The amount of loan shall be released to the borrower after the machinery is received for the installation by him.]
