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 [ - ] [Substituted by Punjab Government notification No. 303-I & C- 54/18789/A, dated 3rd April, 1954.] 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 1½ times the amount of the loan or the unpaid balance of price of the machinery, together with the personal security of the applicant; or](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 1½ 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)[ A mortgage on machinery installed in a leased or rented building or that installed in a building constructed on a leased land, by the applicant, provided it is an emergency loan and does not exceed 60 per cent of the value of the machinery offered as security subject to a maximum of Rs. 35,000/- and that the said machinery is under the use of the loanee for the development of the industry for which the loan is required] [Clause (bb) added by Punjab Government notification No. G.S.R. 279/P.A.5/35/S.46/Amd.(5)/56, dated 23rd November, 1965.];(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 1½ 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 1½ times the amount of the loan, together with the personal security of the applicant and his surety or sureties; if any.(e)[ In case of loans not exceeding Rs. 10,000/- to Small-scale Industrial units, personal security of the applicant or applicants and his or their one surety, as the case may be, rendered to the satisfaction of the General Manager, Manager, District Industries Centre holding independent charge of the area of the District or the Senior District Industries Officer or the District Industries Officer concerned or the Assistant District Industries Officer concerned holding independent charge of the area of the District as the case may be, provided the un-encumbered immovable property owned by the surety is at least double the amount of the loan.] [Substituted by Punjab Government notification No. G.S.R. 10/P.A.5/35 Sections 21 and 46/Amd.(15)/80, dated 7th February, 1980.](ee)[ In the case of an emergency loan not exceeding Rs. 10,000 to a small scale industrial unit, personal security of the applicant and that of his surety rendered to the satisfaction of the Director of Industries, Punjab or the Senior District Industries Officer, or District Industries Officer or Assistant Industries Officer holding independent charge of the district as the case may be] [Added by Punjab Government notification No. G.S.R. 279/P.A.5/35/S. 46/Amd.(5)/65, Dated 23rd November, 1965.].(f)[ In the case of an applicant for loan for an amount not exceeding Rs. 5,000/- 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] [Added by Punjab Government notification No. 12368-INC-55/72505, dated the 11th November, 1955.], 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)[] [Clause (g) omitted by Punjab Government notification No. G.S.R.22/P.A.5/35/S.46/Amd.(II)/76, dated the 5th March, 1976.](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/S.46/Amd.(3)/64, dated the 26th September, 1964.]
