(1) Any person belonging to the Backward Classes may submit to the Controlling Authority an apication in the prescribed form, supported by an affidavit stating the amount of loan desired by him, the purpose for which it is desired and the manner in which the repayment of the loan, if granted to him, is proposed.
(2) The Controlling Authority, if satisfied that the applicant is a person belonging to the Backward Classes, may sanction the loan to the extent of the amount stated in the application or any lesser amount, subject to a maximum of two thousand rupees in each case.
5, (1) When an application for loan has _ been sanctioned, the applicant shall execute a bond in the prescribed form undertaking to apply the money lent to the purpose or purposes for which, and to fulfil the conditions on which, the loan has been sanctioned.
(2) For the loan so sanctioned, the applicant shall furnish One surety, and the person and property of the applicant as well as of the surety shall be liable for the repayment of the loan and costs, if any, incurred in making or recovering the loan :
Provided that the Controlling Authority may in any case exempt the applicant from furnishing a surety.
6. When the application for a loan has been sanctioned the applicant shall execute a bond in the prescribed form undertaking to apply the money to the purpose or purposes for which, and to fulfil the conditions on which, the Joan is granted and shall undertake that if it is not used for such purposes or if there is any breach Of such conditions, the amount of the loan shall be recoverable from him in the prescribed manner.
7. The loan shall be repayable by the borrower in 20 half-yearly equated instalments :
Provided that the repayment of instalments shall Commence on the expiry of four years from the date of Payment of the loan.
— Procedure for sanctioning loans.
Security for;re ment of loans Agreement to be executed by applicant.
Loan how repayable.
Inspection and supply of intormation.
Co: uences of faite by borrower to comply with an order made or to furnish information Tequired under section 8.
Appeal.
Mode of recovery,
(5) to furnish any information which the
10. Within six weeks of the receipt of the ‘l. (1) When the loan or an instalmen’ falls due and is not paid on or before. the’ aa when the loan has been declared immediately BACKWARD CLASSES (GRANTS [1957 . ;
Bac OF LAws) Pb. Ac Xvi
8. Any borrower who makes default in ‘the ment of the loan or any instalments thereof shitPay, bound— all, a) to comply with any genera] Of grits (a) of the Controlling Authority relating © inspection of the premises, buildings, hate e and stock in hand purchased or hire. ery borrower with the aid of the loan grantey the him ; and . @ to trolling Authority may require jp eo of the purpose oF Purposes for which the loae was granted or of the manner In which the loan has been or is being utilised...
(i) to comply with any order_made. or ~to-furnish information required under section 8, or.
9. If the borrower fails without “reasonab ua, oily - (zi) if the Controlling Authority, after. inspection provided for in section. 8 or otherwise, is Satisfied that the money lent is ‘not being applied to the purpose or purposes for which it was lent or that.any condition on. which it was granted is not being duly fulfilled, ae Controlling Authority may declare, not with standing anything ‘contained in the. er executed by the borrower, ‘that the Joan shi be immediately recoverable agains there?
da te, 0 yera and ‘shall give . Ti ‘ notice of ‘such declaration to the borrowe | | notice . om : t the under section 9, the borrower may appeal Oe Govert declaration of the Controlling Authority to : os shall be ment, and the decision of the Government thereon | f BACKWARD CLASSES (GRA act XV] POE Laws) (GRANTS 449 ygs7 PP . and subject to the order made on appeal ynder sectioO coding section, the Controlling Authority nde! the ' setved on the borrower, a notice calling use he sums due within such time and to may “to pay | jm ch officer a8 MAY 5 .
case of default in complying with such notice, 's pecified in the notice including costs, if any jhe sum the Government may be realized as arrears rred by The decision of. the Government as to whether conditions laid down 1n or under any of the provisions thes Act have been satisfied shall be final, and no suits 7 1] be brought in any civil court to set aside or modify sha de thereunder, nor shall the same be order ma é any tioned by any court of law in any proceedings whatsoever.
13. No prosecution, suit or other proceedings shall lie against the Government or any officer or authority yested with powers under this Act for anything in good faith done oF intended to be done thereunder.