Section 19 in The Post Office Savings Certificates Rules, 1960
19. Pledging of certificate.
(1)On an application being made in the form laid down by the Director General Posts by the transferor and the transferee, the Postmaster of the office of the registration may, at any time, before or after the period of its non-encashability, permit the transfer of any certificate as security to -(a)the President of India or Governor of a State in his official capacity;(b)the Reserve Bank of India or a scheduled bank or a cooperative society including a cooperative bank;(c)a Corporation or a Government Company; and(d)a local Authority.Provided that the transfer of a certificate purchased on behalf of a minor shall not be permitted under this sub-rule unless the purchaser of the certificate certifies that the minor is alive and that such transfer is for the benefit of the minor.(2)When any certificate is transferred as security under sub-rule (1), the Postmaster of office of the registration shall make the following endorsement on the certificate, namely:-"Transferred as security to..............."(3)Except as otherwise provided in these rules, the transferee of a certificate under this rule, shall, until it is re-transferred under sub-rule (4), be deemed to be the holder of the certificate.(3A)Notwithstanding anything contained in sub-rule (3), the pledger of certificate on which annual interest is payable shall be entitled to receive the annual interest on such certificate. In such a case, the pledged certificate shall be presented to the Post Office at the time of collecting interest for the first time.(4)A certificate transferred under the sub-rule (2), may, on the written authority of the pledgee, be re-transferred with the previous sanction in writing of the authorised Postmaster and when any such re-transfer is made, the Postmaster of the office of registration shall make the following endorsement on the certificate, namely:-"Re-transferred to .........................."Note 1. - A Gazetted Officer of the Government accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the President of the Governor of a State, shall certify that he is duly authorised under Article 299 of the Constitution vide Notification No. ................ dated ........... issued by the Government of India in the Ministry of ................................. /State Government .................... to execute such instruments on behalf of the President of India/ Governor of a State.Note 2. - An officer of the Reserve Bank of India or a scheduled bank or a Co-operative Society including a Co-operative Bank, Corporation or a Government company or a local authority, as the case may be , accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the respective institution, shall certify under his dated signature and seal of office that he is duly authorised under the articles of the said institution, to execute such instruments or deeds on its behalf.(5)When as a result of several endorsements made under sub-rules (2) and (4) on a certificate, no space is left for making further endorsements of alike character on that certificate, a fresh certificate may be issued by the Postmaster of the office of the registration in lieu of such certificate.(6)A fresh certificate issued under sub-rule (5) shall be, treated as equivalent to the certificate in lieu of which it has been issued for all purposes of these rules.
