(1) Q) Q) For the purpose of Rule 11, certificates verifying the solvency of the surities may be accepted from :—
(i) the Tehsildars in Form VII in respect of personal bond, or the value of lands and buildings of the sureties.
(ii) the District Industries Officer or the Deputy Director of Industries or the Director, Small Industries Service Institute in Form VIII (SISI) in respect of the value of the plant andmachinery.
In the case of Industrial Co-operative Societies, the Assistart Registrar, Co-operative Societies while forwarding the application to the District Industries Officer, who will enclose therewith in Form IX,
(i) acertificate mentioning the maximum credit limit fixed for the Society.
(ii) acertificate to the effect that individual membersofthe Societies have not taken any loan separately.
(iii) a copy of the latest balance sheet and profit and loss account of the Society, and
(iv) amemorandum of his own views regarding the working of the Society.
The Officers mentioned in sub-rules(1) and (2) above will give a certificate in Form X, showing thatthe property offered as security is unencumbered.
1490
(4) The State Government may atany time revaluate the securities and in case any security taken has, in its opinion, become indequate or insufficient, it may require the borrower to furnish additional security.
13, Insurance of Mortgage properties :—
(1) The applicant shall except where the amount of loan does not exceed Rs. 5,000/- within the period of three months from the date of the receipt of the loan amount get all the properties mortgaged by him or it to the State Government insured against loss or damage by fire, riot, civil commotion and the like with an Insurance Company approved by the State Government and shall assign the policy to the State Government and deposit the same with the authority sanctioning the loan.
(2) In the event any default in insuring the property as required by subrule (1), the authority competent to sanction the loan shall get the mortgaged property so insured at the expenses of the borrower to be recovered along with the next instalment of the loan.