23. Manner in which security may be furnished .
|
Form of security |
Conditions |
Amount of security |
1 |
Cash |
The Government will not pay any interest on security deposit, held in the form of cash. |
Amount of cash deposited in appropriate Government treasury. |
2 |
Promissory notes, stock certificates of any State Government |
|
These securities shall be accepted at five percent below their market price as on date of submission or at their face value, whichever is less. |
3 |
Post Office Cash Certificates,Treasury Savings Deposits, National Plan Savings Certificates, 12 Year National Defence Certificates, 10 Year National Defence Certificates. |
These certificates shall be formally transferred to the (President of shall be accepted with the sanction of the Post Master of the office of registration. |
Surrender value at the time of tender. |
4 |
Post Office Savings |
A pass book, for a deposit made under the Post Office Savings Bank Rules may be accepted as security provided that the dealer has signed and delivered to the Post Master a letter in the prescribed form as required by the said rules. The pass book shall be sent to the post office as soon as possible after the 15th June of each year so that necessary entries of interest may be made therein. |
Amount deposited |
5 |
Municipal debentures or Port Trust Bonds and/or Debentures issued by the Government or a financial corporation. |
|
These securities shall be accepted at five per cent below the market price as on date of submission or face value whichever is less. |
6 |
Bonds or debentures issued by corporate bodies guaranteed by the Central or any State Government as regards the payment of principal and interest or as regards principal only. |
|
These securities shall be accepted at five per cent below the market price or face value, whichever is less. |
7 |
Deposit receipts of any authorised bank. |
The deposit receipts shall be made in the name of the dealer but pledged to the President of to the Commissioner. The dealer will agree in writing to undertake the risk involved in the investment. |
The amount shown on the deposit receipt. |
8 |
Mortgage of immovable property, hypothecation or pledge of movable property, personal surety. |
Mortgage bond in writing shall be executed in favour of the President of India and registered according to law of registration at the cost of the dealer. The property mortgaged shall be free from all encumbrances. Personal surety shall be in the form of a personal bond with one or two guarantees acceptable to the Commissioner. This form of security shall be accepted subject to such conditions as may be laid down from time to time by the Commissioner by a general or special order. The liability of the surety or guarantor shall be coextensive with that of the dealer for the period the contract of surety or guarantee remains in operation notwithstanding the fact that the assessment proceedings against the dealer under Chapter VI of the Act for the period are initiated before or after the said period. The liability of the surety or guarantor shall be enforced and executed according to the law for the recovery as arrears of land revenue referred to in section 44. |
Amount stated in the relevant document as the maximum amount recoverable under the mortgage, hypothecation, pledge, or personal surety. |
9 |
Bank guarantee. |
The bank must be a Scheduled Bank. The bank guarantee shall be initially valid for a period of one year and shall be kept valid till such time the Commissioner may require. |
The amount stated in the relevant document as the maximum amount recoverable under the bank guarantee |