Amendment status not verified — confirm the current text below against the official source.
furnished. (1) Before issue of permission under section 6, the Financial execute a bond in favour of the Competent Authority charging immovable -2- l 1 1 }I,i "":i f ! (, / ( I Bar on receiving certain deposits. Application for deposits. property for the value of not less than 50 (sixty)per cent of the proposed total amount of deposits which it intends to receive; or (i) make a fixed deposit of an amount not less than 60 (sixty) per cent of the proposed total amount of deposits which it intends to receive, in a Schedule bank in favour of the Competent Authority for a period not less than 36 (thirty-six) months or (ii) invest in Government securities in favour of theCompetent Authority an amount not less than 50(sixty) per cent of the proposed total amount of deposits which it intends to receive; or (iii) furnish a bank guarantee valid for 3 (three) years from a Scheduled bank in favour of the Cornpetent-Authority for an amount not less than 50 (sixty) per cent of the proposed total amount of deposits which it intends to receive: Provided that the bank guarantee so furnished shall be converted by the Competent Authority to a fixed deposit in its favour in a Scheduled bank if a fresh bank guarantee or any other instrument of security mentioned at serial numbers (i), (ii) or (iii) above for an equal amount is not furnished by the Financial Establishment not less than five working days before the date of expiry of the existing bank guarantee; (2) The Competent Authority may at its discretion permit the Financial Establishment to furnish security in more than one manner mentioned above for an aggregate amount not less than 60 (sixty) per cent of the proposed total amount of deposits which it intends to receive. (3) The Competent Authority may at any time permit the Financial Establishment the substitution of one or more security with another security mentioned at sub-section(1) (4) The security furnished by the Financial Establishment shall not be liable to be attached in execution of a decree or otherwise until the deposits with the returns thereof are fully paid to the depositors.