18. Procedure in case of security given by foreman [Section 20].
(1)(a)Security deposited in cashless mode in an approved bank shall be in the name of Registrar under sub clause (i) of clause (a) of sub-section (1) of section 20, the receipt issued by the approved bank mentioned in the chit agreement shall be delivered to the Registrar.(b)In case of bank guarantee from an approved bank under sub-clause (ii) of clause (a) of sub-section (1) of section 20, the said bank guarantee shall be delivered to the Registrar.(2)In case the foreman of a chit proposes to give movable property as security for the proper conduct of a chit, it shall only be Government Securities or Government Promissory Notes, National Saving Certificate or other similar bonds issued by the Central Government from time to time without any lock-in period. It shall be duly endorsed in favour of the Registrar.(3)In case the foreman of a chit proposes to give immovable property as security for the conduct of a chit, he shall clearly state the correct and complete particulars regarding the property offered as security. Every such application shall be accompanied by -(a)an affidavit to the effect that-(i)the property is free from encumbrance, freehold and is in the name of the company; and(ii)the property is situated in the territory of Haryana.(b)documents of title to the property;(c)copy of mutation made by revenue authorities;(d)copy of property tax receipt or water bill or electricity bill issued by the concerned department;(e)valuation report from the registered valuer appointed by the competent authority; and(f)encumbrance certificate for the last ten years.(4)The Registrar or any officer empowered by him in this behalf shall, by inspection and examination of records produced or inquiries made, satisfy himself to the sufficiency of the security for the realisation of at least two times of the chit amount.(5)If the security offered is accepted as sufficient by the Registrar, he shall make a note of it on the application for furnishing security. If the security offered is not accepted by the Registrar, he shall give the applicant an endorsement to that effect.
