Amendment status not verified — confirm the current text below against the official source.
Conditions for 1.Jra11! of lom1.-(l) No loan shall exceed the pt esc1 ibcd perccntagr of the value of the assets of the industry to which it 1s gr,mtrd and of otlrcr prope1 ty, if any, offered as collateral security without cJeductmg the encumb1ances, 1f any, existing thereon at the time whe11 the appl1cat1on for the Joan 1s made, the value bcmg a~certaincd by the sam.tionmg authority ill the p~escnbcd manner. (2) No loan shall be g1,rnted if the encumbrances on the assets of the industry an<l on othe1 property offe1 cd as collateral secut ity cxeed 50 per cent of the value of such assets and collateral securities m the c~se of an e>-isting industry and tlurty-three and one third per cent m the case of a new industry. 206 (3) The authority granting the loan shall, from out of the loan discharge all encumbtanccs on the assets of the industry and othet pro- perty, 1J any, offered as collate1al security existing at the time when the apphcatton for the loan is made, and shall secure a firc;t charge on the as<>et:. and other property aforesaid. (4) Every lc,an shall be repayable in mstalments within a period not exc:eedmg twenty years afte1 the date of advance of the loan, or where the loan is advapced in instalments, after the date of the advance of the last instalment. (5) In spec1~l cases the Government, for reasons to be recorded in wntmg, ma} , on the application of the owner of an industry to which such loan has been g1anted, vary the terms fixed by the order granting the loan. (fi) All the 1ns111able assets of the applicant offered as security shall be msured against loc;c; or damage with the State In'iurancc Depart- ment and the polac:y assigned II\ favo111 of the Direct<>r of Tnclustrics and Commerce.