(1) At the time of drawing the advance, the member shall execute an agreement in Form II.
(2) On completion of purchase of the vehicle, he/she shall further execute a mortgage bond in Form III hypothecating the vehicle to the State Government as security for the advance.
The cost price of the vehicle shall be entered in the schedule of specifications attached to the mortgage bond in Form III.
(3) The monthly allowance due to the borrower for the months subsequent to the month of drawing the advance shall be delayed to pay until he executes the agreement and the mortgage bond under sub-rule (1) and (2).
(4) One copy each of the Certificate of Registration and Insurance Certificate both attested by a Gazetted officer shall be attached along with the mortgage bond to be executed under sub-rule (2).