Section 213 in Bihar Board's Miscellaneous Rules, 1958
213. Security in promissory notes.
- Treasurers, and all officers who have to furnish security in excess of Rs. 5,000 shall give it in the form of promissory notes and/or stock certificates of the Central Government or of State Government. If it is given in cash, the sum will be invested in as many promissory notes, and/or stock certificates of the Central Government or of State Government as it will purchase, the balance, if any, being placed in the savings bank as a security deposit.Note 1. - The purchase of promissory notes is to be made through the Reserve Bank of India for which the usual commission will be charged by the Bank. No commission, will however, be charged for drawing and remitting interest.[Vide para 110(b) and note 1 below para 111 of the Government Securities Manual, 1939 (third edition).Note 2. - Whenever promissory notes are deposited as security their realizable cash value should be approximate to the amount of the security required. These orders will apply to the cases, not only of treasurers, but to all officers who deposit promissory notes and/or stock certificates of the Central Government or of State Government when cash security to a specified amount is required under the rules (Vide Government of Bihar and Orissa, Finance Department, Circular Memo No. 2942-F.B., dated the 6th October, 1920).
