239. [ [Substituted by C.S. No. 10 dated 30.12.1957.]
Security should in all cases be taken for the due fulfilment of a contract. This security may be-(a)A deposit of cash up to Rs. 500, or up to any larger amount deposited as earnest money under Rule 237, Government securities, municipal debentures and Port Trust Bonds duly endorsed to the Executive Engineer.(b)12 year National Plan Saving Certificates, Treasury Savings Deposit Certificates, State Development Loan or National Plan Loan Certificates, for the amount at which the certificates and papers were purchased, but not for their face value duly endorsed to the Executive Engineer.(c)A deduction of 10 per cent from the monthly payments to be made on account of work done.(d)Personal security of two persons of known probity and wealth.Note. - Parties concerned may be permitted to make, either by a suitable deposit or a guarantee arrangements with any bank which lodges with the Reserve Bank of India requisite securities in respect of the guarantee to be executed or fixed deposit receipts to be tendered by it on terms and conditions laid down by Government in this behalf from time to time:[Provided the cottage and small scale units, duly registered, shall be permitted to deposit half the amount of the security that is required to be deposited by other tenders.]
