Section 12(1) in The Goa, Daman and Diu Chit Funds Act, 1973
(1)For the proper conduct of the chit, every foreman shall, before applying for the certificate of commencement under section 7,-(a)execute an indenture of mortgage and trust in favour of the Registrar as trustee charging by way of security property sufficient for the realisation of the chit amount; or(b)(i)deposit in any approved bank an amount of cash not less than half of the chit amount, or(ii)invest in Government securities of the face value or market value whichever is, less, of not less than half of the chit amount and transfer the amount so deposited or the Government securities in favour of the Registrar to be held in trust by him as security:Provided that, where movable property is charged by way of security, only such kind of movable property as may be prescribed shall be so charged and such movable property shall be deposited in such manner and with such person or officer as may be prescribed.Explanation. - For the purpose of clause (a), security for realisation of the chit amount is said to be sufficient if the market value of the property assessed in the manner prescribed is equal to the chit amount.
