Section 13 in The M.P. Municipal Accounts Rules, 1971
13.
(i)Security shall be taken from the officers or servants of the Council who actually deals with the Council's money or securities. The amount of security will be determined in each case by the respective Municipal Councils :Provided that the State Government may exempt from the operation of this rule any Government servant whose services have been lent to a Municipal Council.(ii)(a)In all contracts entered into on behalf of Municipal Council under which sums of money are payable by contractors, adequate security shall, whenever possible, be taken for sums being paid as they fall due. Where the circumstances are such that security cannot conveniently be furnished, the contractor shall be required to pay the sums due on the contract quarterly in advance and the instalment on account of each quarter shall be paid at least a month before the beginning of that quarter for which the advance payment is required. In default, the contract shall at once be cancelled and new arrangements shall be made, so that, as far as possible, Municipal Councils may be protected from loss.(b)A person who is a relative of a contractor shall not be accepted as surety for the fulfilment of a contract by a contractor unless the officer accepting the security is fully satisfied that the relative has separate property of his own and the surety files an affidavit to the effect that he has separate property of his own.
