(1)Every, chit agreement shall be in duplicate and shall be signed by the subscribers or by persons authorised in that behalf in writing by the subscribers and the Foreman, and attested by at least two witnesses. The agreement shall contain the following particulars. namely :-(i)the full name and the permanent residential address of every subscriber;(ii)the tickets held by each subscriber;(iii)the number of instalments and the amount payable in respect of each ticket for each instalment;(iv)the dates of commencement and termination of the chit;(v)the mode of ascertaining the prized subscriber;(vi)the amount of discount which a prized subscriber at any instalment has to forego;(vii)the mode and proportion in which the discount is distributable by way of dividend. Foreman's commission and incidental expenses, if any;(viii)the date, time and place at which the chit is to be drawn;(ix)if under the chit agreement the Foreman is entitled to the chit amount, the instalment at which the Foreman is to get the chit amount;(x)the manner in which a chit shall be continued, where a Foreman who is an individual dies or becomes of unsound mind or is otherwise incapacitated;(xi)the approved bank in which chit moneys shall be deposited by the Foreman under the provisions of this Act;(xii)the consequences to which a non-prized or prized subscriber or the Foreman will be liable, if he violates any of the provisions of the chit agreement;(xiii)the conditions under which a subscriber will be treated as a defaulting subscriber;(xiv)the nature and particulars of the security offered by the Foreman under section 13; and(xv)any other particulars which may be prescribed.Explanation. - For the purpose of this section it is sufficient to get the signature of each subscriber on separate copies of the agreement.(2)Provision shall also be made in the chit agreement for the mode of distribution of dividend among both prized and non-prized subscribers.(3)Where the prize winner is to be determined by auction and more than one person bids for 1 he same amount, the prize winner shall be determined by lots among them.(4)The amount of discount in a chit shall not [exceed 25 per cent] [These words and figures were substituted for the words and figures 'exceed 12 per cent' by Maharashtra 16 of 1976, Section 2.] of the chit amount.
