Section 16(1) in Uttar Pradesh Chit Funds Act, 1975
(1)A foreman shall, on the prized subscriber furnishing sufficient security for the due payment of future subscriptions, be bound to pay him the prize amount :Provided that the prized subscriber shall be entitled Ito demand immediate payment of the prize amount after deducting all future subscriptions without any security whatsoever, and in such case the foreman shall, before the date of the next succeeding installment, deposit in an approved bank mentioned in the chit agreement the amount of future subscriptions deducted as aforesaid, and he shall not withdraw the amount so deposited except for payment of future subscriptions.
