(l) When a Pan~hayat desires to obtain loan from the State Government or from any undertaking of the State Government or from any other authority receiving.grantsfrom State.Government-or.from---- any financing institution of Central Government/State Government or from any Financial Institution recognised by the Reserve Bank of India, it shall pass a resolution to that effectin its meeting. The Panchayat will then forward the proposal to the State Government with the followingdetails, naIT;lely:- .(a) the source from which the loan is to be borrowed;
(b) the purpose for which the loan is required, and where the loan is required for any of the purposes specified in rule 13.
an estimate of the cost of the entire project or construction work or such part of it a 3 it is prdposed'to carry out from loan funds;
(c) the amount which it is proposed to borrow;
(d) the fund on the security ofwhich it is proposed to borrow;
(e) the dates within which the money is to-be borrowed-ana when-- -- -- - it is proposed to raise a loan in installment. the amount ofeach installment. dates withi:l which the first installment is to be taken or raised and the year in which it is intended to take or (PR)584 PAN. LOANS FROM GOVT. OR FIN. INSTI. RULES, 1999 R.5 raise the other installments;
(f) the law under which the said fund is levied, received or held;
(g) Uie rate of interest at which it is proposed to borrow;
(h) the term of years for which the money is to be borrowed and the method by which it is to be repaid, if it is proposed to repay by means- of sinking funds, the rate of interest at which the improvement of such sinking funds is to be calculated, shall also be stated;
'" (i) an account of the financial position of a Panchayat including a statement of all existing' prior chai"ges on its funds and a statement of its income and expenditure for the last three financial years;
Ul an account of mobilisation of resources for refund of loan and interest thereon.
(2) In case it is proposed to raise a loan from the Government the resolution asking for it with necessary details to that effect shall be sent to the State ,Government through the Director of Panchayats.
q., Inquiry by Director.-The Director may enquire or cause such inquiry as he,thinks fit to be made into the Statements contained in the application and into the utility of the purpose for which the loan is proposed and shall forward the case to the State Government along with his opinion.
6•.'Rejection of ,application.-if it appears to the State Government that ,"the money ought not to be borrowed' itmay reject the 'applicatf6ri submitted on this subject. '