Section 20 in The M.P. State Aid to Industries Rules, 1959
20.
Every guarantee under clauses (b) and (e) of Section 9 of the Act shall be for a fixed period. At the expiration of such period, if the cash credit or overdraft is not cleared or the fixed advance not repaid, and if the bank with which the guarantee has been made, so desires, the amount outstanding, both of the principal and the interest, shall be immediately recoverable. In case of debentures every guarantee shall be secured by a mortgage or a floating charge, or both mortgage and a floating charge, upon the whole of the assets of the industry subject to any encumbrances existing at the time when such guarantee is given. The condition of the guarantee of principal and interest on debentures shall be that an amount equal to the sum paid, or part thereof, as may be determined by the State Government, shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf if within the time the State Government is satisfied that the industry has been making reasonable profits.
