Section 14(1) in Uttar Pradesh Chit Funds Act, 1975
(1)Every foreman shall, before applying for the certificate of commencement referred to in section 7 in respect of any chit series -(a)execute a bond in favour of or in trust for the other subscribers for the proper conduct of the chit, charging property sufficient to the satisfaction of the Registrar for the realisation of twice the chit amount; or(b)deposit in an approved bank an amount equal to the chit amount or invest in Government securities of the face value of not less than one and half time the chit, amount and transfer the amount so deposited or the Government securities in favour of the Registrar to be held in trust by him as security for the due conduct of the chit:Provided that, where moveable property is charged by way of security, only such kind of moveable property as may be prescribed shall be so charged and such moveable property shall be deposited in such manner and with such person or officer as may be prescribed.
