(1) Save as otherwise provided by or under this Act, no person shall start or conduct any chit unless he has registered with the Register the general byelaws under which different chit series are to be operated.
(2) For the purpose of registration, the general bye-laws of the chit series signed by the foreman and attested by not less than two witnesses shall be filed With the Registrar.
(3) The Registrar may-
(a) on being satisfied that the general bye-laws filed with him under subsection (2) are not inconsistent with the provisions of this Act or of the rules made thereunder and that the foreman is a proper person to conduct the chit, register the bye-laws and' issue to the foreman a certificate of registration: or
(b) for reasons to be recorded, refuse the registration.
(4) Without prejudice to the generality of his power under clause (ii) of subsection (3) the Registrar shall refuse registration of any general bye-laws which do no provide for entering into an agreement in writing with the subscriber providing that the instalments of subscription to the chit fund shall be monthly and the chit amount received every month from the subscribers shall be paid to the prized subscriber after deducting the discount which shall not exceed thirty per cent of the chit amount and that the discount shall be available for rateable distribution among the subscribers of the chit after payment of the commission to the foreman which shall not exceed five per cent of the chit amount.
(5) The Registrar shall retain a copy of the bye-laws and return the other copy to the foreman with an endorsement that the bye-laws have been registered.
(6) Notwithstanding anything contained in any contract, document or in any other law for the time being in force, any agreement contained in the articles of agreement between the foreman and subscriber which does not provide for payment of the entire chit amount after deducting the discount to the prized subscriber shall be void .
64 [The Uttar Pradesh Chit Funds Act, 1975] [Section 4-7] Prohibition of invitation for subscription to chit of which by-laws have not been registered
4. No person shall issue or publish any notice, circular, prospectus or other document containing the terms and conditions of any chit or inviting the public to subscribe for tickets in any chit unless the same relates to a chit covered by the general bye-laws which have been registered under section
3.
Form of chit agreement
5. Every chit agreement shall be in duplicate duly signed the foreman and by the subscribers or a person duly authorized that behalf in writing by the subscribers, and attested by two nesses, and it shall contain the following particulars, namely-
(1) full name and permanent residential address of each subscriber, and attested by two witnesses and it shall contain the following particulars, namely---
(2) the number of tickets held by each subscriber;
(3) the number of installments and the amount, payable in respect of each ticket for each installment;
(4) the dates of commencement and termination of the chit;
(5) the mode of ascertaining the prized-subscriber ;
(6) the amount of discount which the prized subscriber, at any installment, has to forego;
(7) the mode and proportion' in which the discount is distributable by way of dividend, foreman's commission and other expenses, if any;
(8) the date, time and place at which the chit is to be drawn;
(9) if under the chit agreement the foreman is entitled to the chit amount, the installment at which the foreman is to get the chit amount;
(10) the approved bank or banks with which chit moneys shall be deposited by the foreman under the provisions of this Act;
(11) the manner in which a chit shall be continued, where a foreman who is an individual dies or becomes of unsound mind; or is otherwise incapacitated; and,
(12) such other particulars as may be prescribed.
Filling of chit agreement