Section 6 in Jammu and Kashmir Chit Funds Act, 2016
6. Form of chit agreement.
(1)Every chit agreement shall be in duplicate and shall be signed by each of the subscribers or by any persons authorised by him in writing and the foreman and attested by at least two witnesses a and it shall contain the following particulars, namely :-(a)full name and residential address of every subscriber ;(b)the number of tickets including the fraction of a ticket held by each subscriber ;(c)the number of instalments, the amount payable for each ticket at every instalments and the interest or penalty, if any, payable on any default in the payment of such instalments ;(d)the probable date of commencement and the duration of the chit ;(e)the manner of ascertaining the prized subscriber at each instalments ;(f)the maximum amount of discount which the prized subscriber has to forego at any instalments ;(g)the mode and proportion in which the discount is distributable by way of dividend, foreman's commission or remuneration or expenses for running the chit, as the case may be ;(h)the date, time and place at which the chit is to be drawn ;(i)the instalments at which the foreman is to get the chit amount ;(j)the name of the approved bank in which chit moneys shall be deposited by the foreman under the foreman under the provisions of this Act ;(k)where the foreman is an individual, the manner in which a chit shall be continued when such individual dies or becomes of unsound mind or is otherwise incapacitated ;(l)the consequences to which a non-prized or prized subscriber or the foreman shall be liable in case of violation of any of the provisions of the chit (b) his methods of operation ;(c)the interests of prospective subscribers ;(d)the requirements as to security ; and(e)such other factors as the circumstances of the case may require.(3)The amount of discount referred to in clause (f) of sub-section (1) shall not exceed thirty per cent of the chit amount.(4)Where the prized subscriber at any instalments of the chit is required to be determined by auction and more than one person offer the maximum discount, the prized subscriber shall be determined by lot.
