(1)The foreman shall be entitled,—(a)in the absence of any provision in the chit agreement to the contrary, to obtain the chit amount at the first instalment without deduction of the discount specified in the chit agreement, subject to the condition that he shall subscribe to a ticket in the chit:Provided that in a case where the foreman has subscribed to more than one ticket, he shall not be eligible to obtain more than one chit amount in a chit without discount;(b)to such amount not exceeding five per cent. of the chit amount as may be fixed in the chit agreement, by way of commission, remuneration or for meeting the expenses of running of the chit;(c)to interest and penalty, if any, payable on any default in the payment of instalments and to such other amounts as may be payable to him under the provisions of the chit agreement;(d)to receive and realise all subscriptions from the subscribers and to distribute the prize amounts to the prized subscribers;(e)to demand sufficient security from any prized subscriber for the due payment of future subscriptions payable by him.Explanation.—A security shall be deemed to be sufficient for the purposes of this clause if its value exceeds by one-third, or if it consists of immoveable properties, the value of which exceeds by one-half, of the amount due from prized subscriber;(f)to substitute subscribers in place of defaulting subscribers; and(g)to do all other acts that may be necessary for the due and proper conduct of the chit.(2)Where any dispute arises with regard to the value of the property offered as security under clause (e) of sub-section (1), it shall be referred to the Registrar for arbitration under section 64.
