Section 85 in Karnataka Agricultural Produce Marketing Act 1966
85. [ Security by traders. [Substituted by Act 29 of 1987 w.e.f.10.8.1987; Act 35 of 1986 w.e.f. 17.6.1986; Section 61(3) 78 85 86 90 106 112 and 147 have been amended and new sections 63A 106A and 109A have been inserted by Act 16 of 1991 but they are not yet brought into force. Text of the amendments made to the above sections and the new sections inserted are at the end of the Act; See footnote below Section 61]
(1)No trader shall buy or take delivery of any goods from any commission agent on credit and no trader's licence shall be granted to any person who intends to buy or take delivery of goods from commission agents on credit unless he has deposited with or furnished to the market committee cash security or a bank guarantee of not less than rupees one thousand.(2)No licenced trader shall buy or take delivery of goods from licenced commission agents in the yard so as to remain indebted to such agents on account of the purchases of goods to such an extent as the security or guarantee deposited or furnished by him falls short of such percentage as shall be provided in the bye- laws which shall not be less than one percent of the aggregate amount of the indebtedness arising out of such credit purchases.]
