In the case of applications for loans to be raised from any other authority constituted under any law for the time being in force and which is in receipt of a grant from the State Government for purposes other than those mentioned in rule 8, the procedure laid down in rules 4, 5, 6 a:ld 7 will be followed. No such loan \\-i11 be sanctioned unless the following conditions are fulfilled, name- 1\-: -
(a)The term of loan does not exceed ten years unless the Government fixps a longer period as a special case;
(b)The rate of interest is not excessive in the opinion of the Government: and
(c) The Panchayat concerned shall submit an annual estimate of income and expenditure during the period of its indebtness for confirma- __ -tion by-the-Go\Ternme~t:- -- ------------ --- - --- -- --.---i-- --- -----------.---- ------- - ---------- --- II. Giving of guarantee.-(1) While raising loan the Panchayat has to satisfy the State Government that it :.s financially competent to make Limelyrepayment of such loan. -
(2) \Vhile granting loan, the State Government may direct the P<lllchayatto submit Collateral guaran~e also in special cases.
(3) In the case of raising loans raised from institutions mentioned in sub-rule (1) of rule 4, the guarantee for making repayment of loan may be givenby the State Government on behalf of the Panchayat. The Panchayat shall have to make paymen_t_~fgu9-!antee_fee_a~_pres.cribed_by_the__Goyem,: _ meiif iii the pres-crthed--manner. - _