(1) The advance granted to a member under these rules together with interest thereon shall be repaid in such number of equal monthly installments not exceeding one hundred and twenty as the Sanctioning Authority may decide in each case.
The Sanctioning Authority may further refix the total number of monthly installments as may be decided in each case for recovering the balance amount of loan along with interest and penal interest, if any on ceasing to be Member of Assembly. Recovery shall be made by deduction from the salary and other allowances admissible under the Act to the Member. The Sanctioning Authority may, if a Member so desires, permit the recovery to be made in a lesser number of installments. The recovery by deduction from; the salary and other allowances shall commence from the month following that in which the advance is drawn, and in order to ensure the recovery and accounting thereof, the bills of the -2- Members to whom motor car advance have been granted shall be routed through the Sanctioning Authority.
(2) Simple interest at the rate of Two (2) percent per annum shall be charged on the advance granted under these rules. Interest shall be calculated from the date of drawl of advance, on the balance outstanding. The rate fixed at the time of sanction of the advance shall hold good for the entire duration of advance.
1[(2A) Simple interest at the rate of two percent (2) per annum shall be charged on the amount outstanding of the advance granted under the Goa (Grant of Advance to Members of the Legislative Assembly for purchase of motor car) Rules, 1990.]
(3) If a person ceases to be a Member of the Assembly for any reason, the amount due towards each; monthly installment with interest and penal interest if any, thereon may be deducted from the pension payable to him or such person may repay such; amount remitting in cash in any Government Treasury, and shall produce Treasury challan every month for having so remitted the amount unless he repays the entire dues in lump sum and produces receipt therefore.
(4) A member may be allowed to sell the motor car purchased by advance only for the purpose of repaying the entire amount of advance granted under these rules, with the prior permission of the Sanctioning Authority. Every Member shall, before selling the motor car purchased under these rules, obtain the prior permission of the Sanctioning Authority, except when he, upon ceasing to be a member has repaid the entire principal amount with the interest and penal interest, if any, thereon due towards the advance.
(5) A person who ceases to be a Member and makes default in payment of monthly installments of the principal amount or interest or penal interest shall, on his becoming an insolvent or contravening any of the terms and conditions of the loan, repay at once the whole of the principal amount and the interest therein and penal interest, if any, or the;
balance unpaid.
(6) In the event of death of a Member before the recovery of entire dues towards the advance, the Government shall be entitled to enforce the mortgaged and take such other action to effect recovery of the outstanding amount, as may be permissible.
(7) The amount of advance to be recovered by monthly installment shall be fixed in whole rupee except in case of last installment, when the remaining balance including any fraction of rupee shall be recovered.
6. Negotiations for purchase of motor car— (1) A Member to whom an advance is sanctioned for the purchase of new motor car shall complete his negotiations for the purchase and shall make final payment for the motor car within one month from the date on which he draws the advance and failing such completion and payment, the full amount of the advance drawn with interest thereon for the month shall be refunded to the Government. The period of one month for completion of negotiation may, however, be extended by the Sanctioning Authority in any individual case on merits. An advance will not be admissible when a motor car has already been purchased and paid for in full. In a case in which payment has been made in part, the amount of advance will be limited to the balance to be paid as certified by; the member.
(2) At the time of drawing the advance, the Member shall execute an Agreement in Form II and on completing the purchase he shall further execute a mortgage bond in Form III hypothecating the motor car to the Government as security for the advance. The cost price of the motor car shall be entered in the Schedule of specifications attached to the -3- mortgage bond.
(3) The Sanctioning Authority shall require the Member to furnish additional collateral security, wherein considered necessary. The collateral security may be in form of assignment of Life Insurance Policies or title deeds of other properties.
(4) When an advance is drawn, the Sanctioning Authority shall furnish to the Accounts Officer, a certificate that the agreement in Form II has been signed by the Member drawing the advance and that has been found to be in order. The Sanctioning Authority shall ensure that the motor car is purchased within one month from the date on which the advance is drawn or within such period as may have been specifically allowed in any individual case by the Sanctioning Authority for completion of the negotiation under subrule (1) and shall submit every mortgage bond, promptly to the Accounts Officer for examination before being finally kept for record.
(5) The Mortgage bond shall be kept in the safe custody of the Sanctioning Authority.
When the advance together with the interest and the penal interest, if any thereon has been fully repaid, the bond shall be returned to the Member duly cancelled after obtaining a certificate from the Accounts Officer as to the complete repayment of the advance and the interest and penal interest, if any, thereon.
(6) The motor car purchased with the advance shall be insured against full loss by fire, theft or accident with the General Insurance Corporation of India or any subsidiary company thereto. The insurance policy shall contain a clause by which the Corporation or the Subsidiary Company agrees to pay to the Government instead of the owner any sums payable in respect of loss or damages to the motor car which is not made good by repair, reinstatement or replacement. Such insurance should be effected within one month from the date of purchase.