Section 20 in The Chit Funds (Madhya Pradesh) Rules, 1984
20. Substitution of security.
(1)During the currency of a chit, the foreman may apply to the Registrar in Form XIII for permission to substitute the security given by him for the proper conduct of the chit by fresh security.(2)The Registrar may grant permission after satisfying himself :(i)that the request of the foreman for substitution of the security given under Section 20 is for the reasons stated in the application; and(ii)that the fresh security offered is adequate.(3)The procedure prescribed in Rule 18 shall apply mutatis mutandis to the substituted security given by the foreman under this rule.
