(1) In cases to which section 9, 10, or 12 of the Act, as the case may be applies, the Bank may determine the person in the manner hereunder as being entitled in its opinion-
(i) to the security, or
(ii) only to payment of all accrued interest and accruing interest or
(iii) to the security and payment of all accrued and accruing interest and may by its order vest title in such person accordingly.
(2) The person claiming to be entitled to a security or to payment of accrued and accruing interest thereon shall apply to the Bank and adduce documentary evidence in support of his claim.
(3) On receipt of the application by the Bank, the Bank if it contemplates making a vesting order under the Act-
(i) may suspend payment of interest on or the maturity value of the security or postpone the making of any order under section 11 or the registration of any transfer of the security until the vesting order has been made;
(ii) may if it considers proper request a District Magistrate, [* * * *] or in the case of a State the Political Agent to record or to have recorded the whole or any part of such evidence as any person whose evidence the Bank requires may produce or direct one of its officers to record such evidence or may receive evidence upon affidavit [* * * *].
[(4) The Bank shall give notice in writing to each claimant of whom it has knowledge, stating therein the names of all other claimants, the particulars of the claim, and intimating its intention to make a vesting order and specifying the Officer of the Bank who will determine the title. The notice shall also require each such claimant to adduce any evidence he may have in support of his claim either by affidavit or in person to the officer and at such time and place as may be specified therein.
(5) After the Officer of the Bank has considered the evidence and determined the issue, the Bank shall give notice in writing to each such claimant, of the determination so made.]
[* * *] [[(6)] The notices prescribed [sub-rules (4) and (5)] above shall be published in three successive issues of,
(a) the Gazette of India and the local Official Gazette where they relate to a security of the Central Government, and
(b) the Official Gazette of the State concerned, where they relate to security of a State Government, as soon as possible after the date on which they are respectively issued.]
[(7) The Bank may require the person considered by the Bank as being entitled to the security or to payment of interest or both to execute a bond in Form V, with one or more sureties or to furnish security not exceeding twice the value of the subject matter of the order, to be held at the disposal of the Bank to pay to the Bank or to any person to whom the Bank may assign the bond or security or any part of the rights under such bond or security in furtherance of sub-section (2) of section 16 of the Act the amount thereof, or, as the case may be, a part of such amount.]
[(8)] On the expiry of six months from the issue of the [notice under sub-rule (5)], the Bank may make an order vesting in the person found by the Bank to be entitled thereto
(a) the security, or
(b) the payment of accrued and accruing interest on the security, or
(c) both the security and the payment of accrued and accruing interest on the security.
[(9)] When title to the accrued and accruing interest is vested in a person [under clause
(b) of sub-rule (8)], such person shall be deemed as having been granted powers to realise accrued interest and to draw interest that may from time to time become due on the security pending a further order vesting full title.
[(10)] In the case of a security maturing for payment of principal the Bank may vest title limited to drawal of interest and simultaneously full title to take effect on the maturity of the security.
[(11)] The person in whom title to the accrued and accruing interest has been vested by the Bank may apply to the Bank for issue of an order vesting full title in him when the security becomes due for payment of the discharge value and the Bank may vest full title in him in the manner laid down in the sub-rules of this rule.
[(12)] Notwithstanding anything contained in the sub-rule, the Bank may vest
(a) title limited to drawal of interest in guardian of a minor or a manager of the property of an insane person, and
(b) full title in the minor or the insane person to take effect on the minor attaining the age of majority or on the insane person becoming sane.
[(13) In cases governed by section 9 or section 10 of the Act the Bank may roceed to pass the vesting order on the basis of certificates issued by the District Magistrate having jurisdiction over the estate of the deceased holder, or, as the case maybe, of the minor or insane person, as specified below, without making any further inquiries:-
(a) In a case falling under section 9, a certificate in form IVC granted by a District Magistrate;
(b) In a case falling under section 10, a certificate granted by a District Magistrate to the effect that the person specified therein is the guardian of the minor or, as the case maybe, the manager of the estate of the lunatic.]
[(14) When full title to a Government security is vested under clause (a) or clause (c) of sub-rule (8), or sub-rule (10), (11) or (13) of this rule in a person, such person shall be regarded as having been granted full and unqualified powers, so far as Government and the Bank are concerned, in relation to that security.]