(1) A foreman shall, on the prized subscriber furnishing sufficient security for the due payment of future subscriptions, be bound to pay him the prize amount :
Provided that the prized subscriber shall be entitled Ito demand immediate payment of the prize amount after deducting all future subscriptions without any security whatsoever, and in such case the foreman shall, before the date of the next succeeding installment, deposit in an approved bank mentioned in the chit agreement the amount of future subscriptions deducted as aforesaid, and he shall not withdraw the amount so deposited except for payment of future subscriptions.
68 [The Uttar Pradesh Chit Funds Act, 1975] [Section 17-20]
(2) If owing to default of the prized subscriber the prize amount due in respect of any dues remains unpaid before the date of the next succeeding draw, the foreman shall deposit the same forth with in an approved bank mentioned in the Chit Fund Agreement and intimate, in writing, the fact of such deposit to the prized subscriber and the Registrar.
(3) Every payment of the prize amount, the deposit of the amount of future subscriptions under sub-section (1) and the deposit of the prize amount under sub-section (2) shall be intimated to the subscribers at the next succeeding draw, and particulars of such payment or deposit entered in the record of the proceedings of that draw.
(4) The foreman shall not appropriate for himself any amount in excess of what he is entitled to under Clause (a) and (b) of section 15 :
Provided that the foreman may appropriate for himself the interest accruing on any amount deposited in banks except interest on deposits made under sub-section (2) or under section 24.
Registers and books of account
17. Every foreman shall keep such registers and books of account, and in such form, as may be prescribed.
Balance sheet Act I of 1956