18. Procedure in the case of security given by the foreman.
(1)In case of cash deposited in an approved Bank in the name of the Registrar under Clause (a) of Sub-section (1) of Section 23 the receipt or the book issued by the approved Bank mentioned in the chit agreement shall be delivered to the Registrar.(2)In case of Government securities transferred in favour of the Registrar under Clause (b) of Sub-section (1) of Section 20, the Registrar shall keep them in sate custody under his control in any Government Treasury.(3)If the security charged is movable property other than deposit in an approved Bank or Government securities, the foreman shall make all necessary arrangements for their deposit with the Registrar or with such Bank or other agency as may be approved by the Registrar for ensuring that the property deposited is available as security for the proper conduct of a chit.(4)in case of trustee securities to be transferred in favour of the Registrar under Clause (c) of Sub-section (1) of Section 20-(i)where the security is other than immovable property, the value of the security shall not be less than one and a half times the value of the chit amount; and(ii)in respect of security of immovable property, the value of the security shall not be less than two times the value of the chit amount.(5)A foreman of a chit proposing to give movable or immovable property as security for the proper conduct of a chit shall apply to the Registrar in Form X. The application under this sub-rule shall clearly furnish the correct and complete information regarding the property offered as security. Where the property offered is immovable property, the application shall be accompanied by the documents of title to the property and an encumbrance certificate for 30 years relating to the property.(6)Where the immovable property offered as security is situated outside the jurisdiction of the Registrar having jurisdiction over the chit, the Inspection of the property shall, under the orders of the State Government, be made by the Registrar concerned as to the sufficiency of the security.(7)If the security offered is accepted as sufficient by the Registrar, he shall record in writing and attach a certificate of sufficiency in Form XI and a statement of the valuation made to the application.(8)If the security offered is not accepted by the Registrar, he shall record it in writing on the application to that affect.
