(1) Except when a member ceases to be such a member, previous sanction of the Sanctioning authority shall be obtained for the sale by the member of the vehicle purchased with the advance drawn under rule 5, if such advance has not been fully repaid.
(2) Where a member wishes to transfer the said vehicle to another member, he may be permitted under the orders of the Sanctioning authority, to transfer the liability attached to that vehicle to the latter member provided that the member purchasing the vehicle shall make a declaration 'to the effect that he is aware that the vehicle transferred to him remains subject to the mortgage bond and that he is bound by its terms and conditions.
(3) In all cases, where a vehicle is sold before the advance received for its purchase has been fully repaid, the sale-proceeds shall be applied, so far as may be necessary, towards the repayment of such outstanding balance:
Provided that when the vehicle is sold only for the purpose of purchasing another vehicle, the Sanctioning authority may permit the member to apply the sale proceeds towards such purchase subject to the following conditions, namely:-
(a) the amount outstanding shall continue to be repaid at the rate previously fixed; and
(b) the new vehicle shall also be insured and mortgaged to the State Government.