Amendment status not verified — confirm the current text below against the official source.
6. (1) As soon as may be after an application for loan has been sanctioned, the applicant and if the applicant is a firm or company, a duly authorized representative thereof, shall execute a bond in the prescribed form undertaking to apply the money lent for the purpose or purposes for which, and to fulfill the conditions on which the application been sanctioned. (2) For any loan taken under the Act, the applicant shall, if so required by the controlling authority, furnish two sureties, and the applicant, as well as the sureties, shall be jointly and severally liable for the repayment of the loan with interest and costs, if any, incurred in making or recovering the loan. (3) Any plant or machinery, which the borrower may purchase with the aid of the loan advanced to him shall, so long as the loan has not been fully satisfied belongs to and vest in the Provincial Government and any transfer or assignment of any right, title or interest therein or the creation of any mortgage or other encumbrance thereon by the borrower shall, unless made with the previous written consent of the controlling authority, be void against the Provincial Government. (4) Notwithstanding anything contained in the Indian Stamp Act, 1899, no stamp duty shall be chargeable on any bond executed or affidavit filed under the provisions of this Act.