Section 26(11) in The Sugar Development Fund Rules, 1983
(11)(a)The sugar undertaking shall after execution of the agreement, referred to in sub-rule (10), furnish security for the restructured loan to the satisfaction of the Central Government.(b)The security shall cover the amount of loan and interest for the full period of repayment as provided for in the rehabilitation scheme as accepted by the Central Government and additional interest on account of default as referred to in clause (b) of rule 9 and shall be furnished in any of the following manners, namely:(i)bank guarantee from a Scheduled Bank; or(ii)a mortgage on all immovable and movable properties of the sugar undertaking on pari passu first charge basis.
