The prize money will be paid to the successful subscriber before the next auction date if adequate securities furnished to cover the future liability of the chit. Proper security in the form of Personal Guarantee, Bank Guarantee. Immovable property or any other form of security has to be provided to the satisfaction of the Foreman for the release of the Prize Money The nature of security indicated normally applies for one chit.
Where a subscriber holds more than one chit, the combined future liability alone will be taken into account for the purpose of security.
For this purpose, the combined future liability in respect of cases where a subscribers holds more than one chit in the same branch or in different branches will be taken into account. In case a subscriber from one chit group has stood as guarantor for some other subscriber, either in the same group or in other group, for the purpose of arriving at the total liability, all such future commitment will also be taken into consideration. Only at the discretion of the Company, persons can stand surety to more
than one chit.
After the auction the proposed security/surety to be provided has to be discussed by the prized subscribers with the Branch In charge to his satisfaction. Later completed proposal form has to be submitted for further documentation within 7 days from the date of the auction.
The document based on the proposal form will be prepared and have to be signed by subscriber and the guarantors in the presence of the officials of the concerned branch or any other specified authorities of the organisation.
Prize money will be released by “Account Payee” cheque only. In respect of outstation subscribers payment may be made through bank draft after deducting the D.D. Charge.
