Section 13(1) in Andhra Pradesh Chit Funds Act, 1971
(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 installment specified in the chit agreement;(b)to such commission or remuneration not exceeding five per centum of the chit amount as may be fixed in the chit agreement ;(c)to receive and realize all subscriptions from the subscribers and to distribute the prize amounts to the prized subscribers and the dividend among the subscribers;(d)to demand sufficient security from any prized subscriber for the due payment of future subscriptions ;Explanation. - A security is said to be sufficient for the purpose of the clause, if its value exceeds by one - third, or if it consists of buildings, the value exceeds by one half, the amount due from the prized subscriber ;(e)to substitute subscribers in the place of defaulting subscribers ; and(f)to do all other acts that may be necessary for the due and proper conduct of the chit.
