Section 27(2) in The M.P. State Aid to Industries Rules, 1959
(2)Every loan, guarantee of cash credit, overdraft or fixed advance with a bank shall be secured by-(a)a mortgage or a floating charge upon the whole assets of the industry; or(b)a mortgage or a floating charge upon the other assets belonging to the applicant; or(c)a mortgage or a floating charge upon the assets of surety or sureties of the applicant; or(d)[ the personal security of the applicant for loans not exceeding rupees two thousand in the case of handicraft artisan and rupees one thousand in the case of others; or] [Substituted by Notification No. 17113-6786-XI-B, dated 16-11-1966.](e)the joint personal security of the applicant and of one or more persons having landed property in Madhya Pradesh in cases of loans exceeding Rs. 1,000 but not exceeding Rs. 5,000 :Provided that in case of loan exceeding Rs. 2,500 at least two such sureties shall be necessary :Provided further that in cases where personal security of one surety is taken in cases of loans not exceeding Rs. 2,500 the surety should be solvent at least to the extent of 1-½ times of the amount of loan to be sanctioned and in case where two or more sureties are taken, they should be each solvent separately at least to the extent of the amount of loan; or(f)a combination of the forms of the security mentioned in clauses (a) to (e).
