Section 23(16) in The Sugar Development Fund Rules, 1983
(16)[ - Omitted] [[Deleted vide GSR 188(E) dated 9.3.07'(a) 'the sugar factory shall, after the execution of the agreement referred to in sub-rule (15) above, and before the disbursement of the loan under sub-rule (u), furnish security for the loan to the satisfaction of the Central Government.(b)The security shall cover the amount of loan and interest thereon for the full period of repayment as provided in sub-rule (14) above, and shall be furnished in any of the following manners, namely:-(i)Bank Guarantee from a Scheduled Bank, or(ii)A mortgage on all immovable and movable properties of the sugar factory on pari passu first charge basis failing which on the basis of an exclusive second charge.]']]
