(a)The forest contractor shall make security deposits to be fixed at 10 to 25 per cent of the purchase price at the discretion of the Divisional Forest Officer subject to a minimum of Rs. 100/-. Such Security deposits shall be retained by the Divisional Forest Officer as security for the due observance and performance by the contractor of the Government's agreements contained in the forest contract executed by him and any sum of money which shall become payable by the contractor to the Government of Bihar under any of the conditions of any forest contract may be deducted therefrom by the Divisional Forest Officer. In the event of any such deductions the contractor shall immediately, on demand, pay to the Divisional Forest Officer such sum as shall be required to make up the deposit to its full original amount. Pending the payment of such sum, it shall be lawful for the Divisional Forest Officer, at his discretion to prohibit and suspend all operations covered by the contract and the contractor shall not be entitled to compensation for any loss that may be sustained by him owing to such prohibition or suspension:Provided always that if the amount deposited as security in respect of any forest contract is at any time or times not sufficient to make good any amount which may become payable to the Government of Bihar-under the terms and conditions of the contract, the Divisional Forest Officer shall be entitled to deduct the balance due to him out of the security moneys deposited by the contractor in respect of other coupes and the contractor shall be bound on demand to deposit forthwith additional moneys as security to make good any amount of licence to Divisional Forest Officer.(b)The bidders whose bids are accepted provisionally by the Divisional Forest officer will immediately on the fall of the hammer, have to sign the necessary bidsheet, agreement and post office security deposit forms and deposit security with the Divisional Forest Officer. No sale of any lot will be considered valid until these conditions have been complied with, and in the event of failure to comply with this the Divisional Forest Officer will have the liberty to quash the sale, resell the produce concerned, and confiscate any security that may be deposited on account of that lot.(c)The amount deposited as security will be sent to the Post Office Savings Bank account opened in the name of the depositor to the pledge of the Divisional Forest Officer.
