Legal Document View

Unlock Advanced Research with PRISMAI

Integrated with over 4 crore judgments and laws — designed for legal practitioners, researchers, students and institutions

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 0, Cited by 0] [Section 49] [Entire Act]

State of Madhya Pradesh - Subsection

Section 49(2) in The M.P. Zila Panchayats (Accounts) Rules, 1999

(2)Modes of Security. - Security to be taken from an employee should be in one of the following modes subject to the conditions noted against each, or partly in one and partly in another of these modes when this is specially permitted by the officer authorised to accept the security :-
  Form Conditions
  (1) (2)
(a) Cash Zila Panchayat will not pay any interest on the depositedamount.
(b) Post Office fixed deposit Certificates, National SavingsCertificates. The certificates should be formally transferred in favour ofthe Chief Executive Officer with the sanction of the Head PostMaster, and should be accepted at their surrender value at thetime of tender.
(c) Deposit receipts of Schedule Banks/Co-operative Banks. (1) The deposit receipt should be made in the name of thepledged or, if it is made out in the name of the pledger, thebank should certify on it that the deposit can be withdrawn onlyon the demand or with the sanction of the pledgee.
    (2) The bank should agree that on receiving a withdrawalorder from the pledgee in receipt of the deposit, or any partthereof, it will pay the deposited amount with interest to thepledgee.
    (3) The depositor should in writing undertake any riskinvolved in the investment.
    (4) The responsibility of the pledgee in connection with thedeposit and the interest on it will cease when he issues a finalwithdrawal order to the depositor and sent the information tothe bank that he has done so.
(d) Fidelity bonds from Insurance Companies. A fidelity bond may be accepted as Security Insurance fromthe servant of the Panchayat but not from a Private party. Thebond should be in the prescribed form.
(e) Third Party guarantee. The Guarantor should not be related to the person on whosebehalf the guarantee is being given. The guarantee should alsobe accompanied with a solvency certificate for an amount notless than 4 times of the required amount of security.
Conditions. - (1) When an employee has furnished security in the form of a fidelity bond, the Chief Executive Officer receiving the bond should see that the employee pays the premia necessary to keep it alive on the due dates and continue to do so until a period of six months has elapsed since he vacated his office.