Amendment status not verified — confirm the current text below against the official source.
(1) The proceedings of every draw shall be recorded in a book to be kept for that purpose and shall be signed by the foreman and all the subscribers present. It shall also be signed by the prized subscriber or his authorised agent. (2) Such record of the proceedings shall state clearly- (a) the date and hour when the proceedings began and' ended' and the place where the drawing was held; (b) the number of the particular instalment of the chit of which proceedings are recorded; (c) the names of the subscribers present; (d) the person or persons who become entitled to the prize amount in the particular instalment; (e) the amount of discount; (f) full particulars regarding the disposal of the prize amount in respect of the preceding instalment and disposal of unpaid prize amount, if any, in respect of any previous instalment; and (g) such other particulars as may be prescribed. 66 [The Uttar Pradesh Chit Funds Act, 1975] [Section 12-14] Copy of minutes to be filed with the Registrar 12 . Every foreman shall, within fifteen days of the month succeeding the month in which one or more instalments of the same chit or one or more instalments of any other chit are drawn, file with the Registrar a copy of the record referred to in section 11 in respect of the draws at all such instalments and certified by the foreman to be true copy. Chapter III FOREMAN Value of chits 13 . No foreman shall conduct at a time any chits the aggregate amount of which exceeds fifty per cent of the net assets of the foreman. Explanation- In determining the net assets of a foreman for the purpose of this section the amount of security furnished by him shall be excluded if such amount is the amount of subscription received in advance from the subscribers. Security to be given by foreman 14 . (1) Every foreman shall, before applying for the certificate of commencement referred to in section 7 in respect of any chit series------- (a) execute a bond in favour of or in trust for the other subscribers for the proper conduct of the chit, charging property sufficient to the satisfaction of the Registrar for the realisation of twice the chit amount; or (b) deposit in an approved bank an amount equal to the chit amount or invest in Government securities of the face value of not less than one and half time the chit, amount and transfer the amount so deposited or the Government securities in favour of the Registrar to be held. in trust by him as security for the due conduct of the chit: Provided that, where moveable property is charged by way of security, only such kind of moveable property as may be prescribed shall be so charged and such moveable property shall be deposited in such manner and with such person or officer as may be prescribed. (2) Where a foreman conducts more than one chit, he shall furnish security in accordance with the provisions of sub-section (1) in respect of each chit. (3) Subject to the provisions of section 520 of the Companies Act, 1956, the security given by the foreman under sub-section (1) shall not be liable to be attached in execution of a decree or otherwise--- (a) until the chit is terminated and the claims of all the subscribers are fully satisfied; (b) until all dues payable by the foreman under this Act to the, Registrar or any other officer have been paid; (c) where owing to the default of the prized subscriber the prize amount due remains unpaid even after the termination of a chit until the foreman deposits such amount in an approved bank mentioned in the chit agreement and intimates in writing the fact of such deposit to the prized subscriber. 67 [The Uttar Pradesh Chit Funds Act, 1975] [Section 15-16] (4) The Registrar shall, after the termination of a chit and after satisfying himself that the requirement mentioned in clauses (i) to (iii) of sub-section (3) have been complied with, release the property charged by way of security or order the release of the cash security or the Government security referred to in sub- section (1), and in doing so, he shall follow such procedure as may be prescribed. (5) The Registrar may on the application of any foreman, instead of releasing the security under sub-section (4), accept the same as security in respect of any other chit conducted by the same foreman. If the value or amount of the security so accepted is less than the value or amount specified in sub-section (1), the Registrar shall require the foreman to furnish additional security to make up the deficiency, If the value or amount of such security is in excess of the value or amount required, the Registrar shall release such excess. (6) Notwithstanding anything to the contrary contained in any other law for the time being in force, the security furnished under this section shall not be dealt with by the foreman during the currency of the chit, and any dealing by the foreman with respect thereto, by way of transfer, charge, mortgage or other encumbrance, shall be void. Rights of foreman