REGISTERED No. D. (D)-72 The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 84] NEW DELHI, SATURDAY, MARCH 31,1979/CHAITRA 10, 1979
Separate paging is given to this part in order that it may be filed as a separate compilation
(491)
1395 GI/78—1
492 THE GAZETTE OF TNDIA : EXTRAORDINARY [PART I—SEC. 1] 493 494 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] 495 496 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]MINISTRY OF COMMERCE, CIVIL SUPPLIES &
COOPERATION
(Department of Civil Supplies & Cooperation)
NOTIFICATION
New Delhi, the 26th March, 1979
[No. O 170I1/3/78-GOP].—The Government of India notified in their notification No. 1.25/65.CC dated 27-5-1966, a scheme of guarantee to enable the wholesale consumer co- operative societies and State and National Federations of Consumer Cooperatives to secure adequate working capital fiom banking agencies on reduced margins. Under this scheme, a limited guarantee, fox- a temporary period, was provided to Apex and District Central Cooperative Banks and to any Bank included in the Second Schedule of the Reserve Bank of India Act, 1934, in respect of secured ad- vances made by them to these cooperative societies. The Scheme was operative upto the 31st December, 1971. A modified scheme of Central Government Guarantee, was in force for the period from 1-1-J972 to 31-3-1974, and notified in Krishi Mantralaya, Sahkarita Vibhag Notification No. O 17011/9/71-GOP dated the 7th December, 1971.
2. A modified and liberalised guarantee scheme for the Fifth Five Year Plan Period (from 1-4-1974 to 31-3-1979) was notified by tthe Government of India. In pursuance of that scheme Government of India entered into agreement with Apex/District Central Cooperative Bank, and other Nationalised Commercial Banks in respect of 3ecured advances made by them to National Consumers Cooperative Federa- tion, State Federation of Consumer Cooperatives and Cen- tral/Wholesale Consumer Cooperative Societies. Subse- quently vide notification of the Ministry of Industry and Civil Supplies (Department of Civil Supplies & Cooperation) notification No. O 17011/1/75-GOP dated 25th May, 197fi and Ministry of Civil Supplies & Cooperation notification No. O 17011/3/77-GOP dated 7th February, 1978 was fur- ther decided that Government of India will enter into asign- ment with the above said banks in respect of secured advan- ces to all State Level Cooperative Federation engaged in [he business of Consumer articles registered with whats^ver nomenclature, provided that the coverage under this guaran- tee scheme will be restricted to their working capital re- quirements for distribution of consumer articles alone and
497:ill cooperative institutions engaged in retail business in the distribution of consumer articles registered with whatsoever nomenclature and having a sales trim over of at least Rs. 20 lakhs per annum and in case all such institutions In coopera- tively under developed Stales, having minimum annual sales turnover of Rs. 10 lakhs.
3. The conference of the Ministry of Cooperation and Registrar of Cooperative Societies of States and Union Terri- tories held in November-December, 1977 felt that during the Sixth Five Year Plan when the consumer cooperatives arc likely to be involved more and more in the Public Distribu- tion System it would hardly be possible for them to fulfil the task if adequate finance from the financing agencies aro not available at reduced margin under the Central Govern- ment Guarantee Scheme. The conference therefore recom- mended that the Government guarantee scheme which is duo to expire on 31-3-1979, should further be extended for a period of five years i.e. from 1-4-1979 to 31-3-1984. In pursuance of the above recommendation and having regard to the increasing need of working capital by the coopera- tive institutions dealing in essential articles it has been de- cided by the Governmtti of India to operate the scheme of Central Government Guarantee for a further period of five years from 1-4-1979 to 31-3-1984 with a view to pro- viding working capital loan to such consumer cooperatives from cooperative and nationalised banks at reduced margin of 10 per cent.
4. In pursuance of the above decision ths Government of India will consider entering into agreements in the form of Deed of Guarantee at Annexurc 1, with any Apex/Dis- trict Central Cooperative Bank, any bank constituted and functioning under banking companies (Acquisition and Transfer of Undertakings) Act, 1970|Statc Bank of Tndia, constituted under the State Bank of Tndia Act, 1955, a subsi- diary Bank as defined in the State Bank of India (Subsidiary Br,nks Act, 1959) in respect of secured advances made by them to :—
(i) National Cooperative Consumers Federation,
(ii) All State Federation of Consumer Cooperatives.
(iii) All Wholesale/Central Consumers Cooperative
Societies.
(iv) All State Level Cooperative Federation engaged in the business of consumer articles registered under any nomenclature provided that their coverage under this guarantee scheme will be reslricted to their working capital requirements for distribution of consumer articles alone.
fv) All cooperative institutions engaged in retail busi- ness in the distribution of consumer articles, regis- tered with whatsoever nomenclature and having sales turn over of at least Rs. 20 lakhs and in case of such institutions in the cooperatively under deve- loped states (Assam, Bihar, Meghalaya, On'ssa, Rajasthan, West Bengal, Manipur, Tripura & Naga- land) having the minimum annual sales turnover of Rs. 10 lakhs.
5. The Central Government Guarantee will be available only in respect of secured loans and advances guaranteed foi specific period before 1-4-1984 with the prior approval in writing of the Surety, against pledge or hypothecation of goods, which would include book debts securities, invest- ments and other move-able property, to all cooperative insti- tutions mentioned in para 4(i) to 4fv) above. The banks have to keep a margin of 10 per cent only on ai"ch loans and advances. The liability under the Central Government's Guarantee in respect of any such loan and advances to any society will be limited to :—•
(i) 25 per cent of the amount of all guaranteed loans and advances actually outstanding on the books of the bank against the cooperative society en the dale on which the notice of demand is issued by the bank in accordance with the terms of the agreement;
OR
Rs. 75 lakhs (Rupees Seventy Five lakhs) in the case of the National Cooperative Consumers Federation.. Rs. 50 lakhs (Rupees Fifty lakhs) in the case of all State Level Federation including cooperative insti- tutions mentioned in para 4(iv) and Rs. 30 lakhs (Rupees Thirty lakhs) in the case of all other coope- rative institutions including those mentioned in para 4(.v) irrespective of their place of business in mciro- politan cities or elsewhere,
whichever amount is less.
6. The. guarantee in pursuance of this Notification will be available only in respect of secured loans and advances grant- ed, for specific periods, with the prior approval in wrilini; of the Cential Government before the 1st April, 19S4. Na loan or advance granted for the first time on or afcer the 1st April, 1984, and no increase in the amount outstanding in respect of any loan or advance subsisting on the 31st March, 1984 shall be covered by the guarantee. The Central Govern- ment's liability on account of this guarantee shall become determined at the close of business on the 31st March. 1984.
7. The society shall enter into an agreement with the Presi- dent of India in the form provided in the First Schedule to the Deed of Guarantee, annexed hereto, undertaking :—
(a) to pay the dues of the bank regularly and promptly in accordance with the conditions laid down by the bank while sanctioning the loan, advance or cash credit; *
(b) to carry on the business of the society diligently
with a view to making profit;
(c) to guarantee to the Central Government repayment of all moneys that may be recovered by the bank from the Central Government on account of any default on the part of the society to make payment to the bank on demand without demur ;
(d) to implement a system of regular verification of stocks, followed by prompt assessment of shortages, fixation of responsibility therefor and recovery of their value from those responsible;
(e) to exercise strict caution in the extension of credit facilties to societies, institutions, and individual?, combined with measures for systematic and prompt recovery ;
(f) to ensure preparation of quarterly trading and profit and loss account and balance sheet as on the last day of each quarter, together with preparation of a quarterly management report on the society's work- ing, and submit a copy of it to the Central Govern- ment and to the State Government every quarter ;
(g) to keep the properties and assets of the society frrc from encumbrances and attachments except Ihosc in favour of the Bank and in respect of which the Government has given guarantee to the Bank or those in favour of State/Central Governments ; ar.d
(h) to provide all facilities to the Central Government or any person or persons nominated by it in this behalf to examine the accounts of the society and its work- ing.
The agreement shall bo executed before the date of drawal of the money. The Bank shall not make any payment unlesi the signed agreement and the Letter of Consent in (iic form provided in (he Second Schedule to the Deed of Guarantee are furnished.
8. The Central Government's guarantee docs not extent to the interest on the loans and advances granted by banks.
9. Every bank shall continue to hold all the promissory note'; and unrealised securities which may be available to the banL in respect of such loans granted by it to the socfety even after realisation by it in full, of the outstanding dues to it in respect of the loans and advances advanced by It under the Central Government Guarantee, till the amount reim- bursed by the Central Government as guarantor is realised.
10. The bank shall obtain from the society and furnish to the Centra] Government, a letter of consent byt he society
49R THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]as in the Second Schedule to the Deed of Guaranlec. to the effect that the society agrees to :—
(a) continue to pay interest on any amount paid to tne bank by the Central Government in pursuance of the guarantee at the same rate at which interest has been or may be charged by the bank on the loan or advance made to the society, until the s.iid amount is paid to or adjusted in favour of the Cen- tral Government ;
(b) credit or permit the hank to credit to the account of the Surety all (he amounts paid by or recovered from the society on account of the loan or advance, after the date on which the Central Government have reimbursed any amount to the bank in pursu- ance of the guarantee but after the banks claim in respect of the loans and advances covered by the guarantee has been fully satisfied and so long as the amounts paid by or recovered from the society on account of the loan interest and charges thereon have not been reimbursed by the society.
(c) the hank continuing to have and to exercise all the rights over the securities in favour of the bank in respect of all such loans and advances till til such claims of the Central Government arc satisfied ; and
(d) the bank transferring its rights and claim under such securities to the Central Government, if so required by the latter.
11. In the event of the bank being satisfied that the society has failed to make regular remittances to the bank against the advance made under the guarantee or fails to obtain the prior approval of the Surety in writing for the continuance of :\ guarantee before its expiry, the bank will not allow further drawals by the society at reduced margin and will continue to credit all further remittances by the society to the account of the guaranteed loan till it is fully repaid.
12. The Central Government's guarantee shall not be in- voked on more than one occasion by the bank in respect of B particular society. The guarantee may be invoked at any lime before the 1st April, 1984. The bank shall first issue a notice of demand1 on the society to pay the amount due to it on account of the loans and advances granted to it by the bank and guaranteed by the Surety, within thirty days of the date on which the notice asking for such repayment is served by the Bank. A copy of such notice should hs endorsed to the Surety simultaneously. On the expiry of the period of 30 days if the society does not make payment of the amounts, the bank may issue a notice of demands on the Central Government. The Central Government shall reim burse to the bark the amount payable to it under the cuarantee. within a period of 90 days, from the date of receipt of the Bank's notice invoking the guarantee and claiming payment,
13. The bank, seeking a guarantee in pursuance of this notification shall, in the event of the Government's guarantee being invoked in the case of any loan or advance, undertake to credit to the Central Government any sums which may be realised from the society after the bank has realised from the society in full the loans and advances guaranteed by the Central Government. It shall be obligatory on the bank to take action in the above manner after the Central Govern- ment has reimbursed the amount unthr the guarantee
14. The obligations of the bank referred to in the above clauses shall continue till such time as the amount reimbursed by the Central Government under the guarantee has been paid or credited to the Central Government or until the Central Government has agreed to adjust the said amount against any other amount due to be paid by it to the bank or to the society or to waive recovery of the amount.
15. The Registrar of Cooperative Societies of the con- ccrned State is legally and administratively the competent authority for exercising regular supervision over the working of the society and also for taking appropriate remedial mea- sures in case any adverse features are noticed in the affairs nnd working of the society or if there is any report by the bank with regard to irregular remittances by the society or any other undesirable financial features in its operation. Tt is clearly understood that this guarantee will be given only if the proposal is recommended by the Registrar of Coope- rative Societies of the concerned state. A recommendation made by the Registrar of Cooperative Societies will be deemed to be iin assurance by such Registrar that necessary steps vyill be taken for regular supervision of the affairs and working of the society and that appropriate remedial measures will be taken in case of any such adverse report received trom tho Bank and/or from the Government of India on the affairs and working of the society.
16. Any officer of the rank of Director/Deputy Secretary and- above in the Ministry of the Government of India dealing in Consumers' Cooperatives, New Delhi duly nominated by the competent authority will be the authority to enter into Ihc prescribed agreement of guarantee with the banks for the Central Government Guarantee in pursuance of this notification. All banks referred to in the notification are advised to contact the officer incharge of the Guarantee and Operation in the Ministry as indicated above in case they wish to avail themselves of the facility provided by the Central Government.
K. L. N. RAO, Jt. Secy.
ANNEXURE
DEED OF.GUARANTEE """ ™~"
This Deed of Guarantee entered into on the-—
• —— day of between the President of India (hereinafter called "the Surety") of the one part and the- ———— .
a bank constituted and functioning under the Banking Com-
panies (Acquisition and Transfer of Undertakings), Act, 19701
State Bank of India constituted under the State Bank of India
Act, 1955- —
(name of the Bank), a subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959/a Cooperative Society registered wider— —— —
and having i t s— — ——— .—_^ office at- _ _ _ _ __ (hereinafter called "the Bank") of the other part wltnessth as follows :—
In consideration of the Bank, making loaas and advances
to — —. _ __ _ __
(hereinafter called the 'Society') at the latter's request, after relaxing margins which the Bank but for this guarantee might have normally kept, the Surety hereby guarantees to the Bank to the extent hereinafter provided the repayment of loans and advances by the Society to the Bank subject to their terms and conditions hereinafter mentioned :—
1. The Surety's guarantee will be available only in respect of any secured- loan or advance granted for specific periods to the society with the prior approval in writing of the Surety by the Bank before the 1st of April, 1984, against the pledge or hypothecation of goods, which would include book debts, securities, investments and other movable property. The Bank agrees to keep a margin of only 10 per cent against such loans and advances.
2, The Surety's liability in respect of any loan or advance granted as above to the said Society shall not at any time exceed :—
(i) twenty-five per cent of the amount of the guaranteed loans and advances actually outstanding on the books of the Bank against the society on the date on which the notice of demand on the Surety is issued by the Bank in accordance with the provisions of the clause (3) hereof :—
OR
(ii) Rs, __. __ ..jeith, only
whichever amount is less.
4993. The Bank may invoke the Siuety's guarantee at any imc before ihc isL or Apiil, I0&4, in the manner hereinafter spe- cified, namely,—
(i) The Bank shall first issue a notice of demand on the society to pay the •amount due to il on account of the loans and advances granted to it by the Bank and guaranteed by the Surely, within thirty days of the date on which the notice asking for such repay- ment is served by the Bank. A copy of such notice should be endorsed to the Surety simultaneously.
(ii) It on th; cxpiiy of the period of 30 Jays, as afore- said, the Society does not make payment ol the loans and advances granted to it by the Bank and guaranteed hy the Surety, the Bank shall issue a notice of demand on the Surety.
l.iii) The Bank shall while invoking the Surety's guarantee,
furnish to the Surety : —
(ij details of the goods, against which loan or advance iti respect of which the guarantee is invoked has been granted.
(ii) the market value of the said goods, and
(lii) the amounts outstanding against the Society a*
at:—
(a) the date on which the notice asking for repay- ment was issued to the Society by the Bank, and
(b) the expiry of thirty days of the date of aotice
asking for repayment, and
(iv) The Surety shall reimburse to the Bank the amount due to it to the extent provided in this guarantee within a period of 90 days from the date of receipt by the Surety of the Bank's notice invoking the guarantee and claiming payment.
4. The guarantee herein contained shall be enforceable against the Surety notwithstanding that any securities that the Hank may obtain from the Society shall be outstanding cr unrealised.
5. 7 he Society shall enter into an agreement with the Pre- sident of India in the form annexed in the First Schedule to the Deed of Guarantee, undertaking:—
(a i to pay the dues of the Bank regularly and promptly in accordance with lhe conditions laid down by Iho Bank while sanctioning the loan, advance or c:ish credit;
fb) to carry on the business of the society diligently with
a view to making profit ;
(c) guaranteeing to the Central Government repayment of all monies that may be recovered by the B.mk from the Central Government on account of any default on the part of the society to make payment to the Bank, on demand without demur;
(d) to implement a system of regular verification o(
stocks, followed by p;cimpl assessment of shori.1-.1c5, fixation of responsibility herefor and recovery of rlieir value from those responsible ;
(el to exercise strict caution in the extension of credit facilities to societies, institutions and individuals, combined with measures for systematic and promol recovery;
(f) to ensure preparation of quarterly trading and prolit and loss account and balance sheet as on ;he last day of each quarter, together vvilh preparation of a quarterly management report on the society's working and submit a copy of it to the Surety every quarter ;
(g) to keep the properties and assets of the society free from encumbrances and attachments except those in favour of the Bank and in respect of which lhe Government has given guarantee to the Bank or those in favour of State/Central' Governments, and
1395 GI/78--2
(h) to provide all facilities to the Surety or any ;icrson or persons nominated by it in this behalf to examine its accounts and its working ;
The Bank shall not make any payment, to the Society iimeta lhe agicement in the profoima in the First Schedule and tbo letter of Consent as in the Second Schedule to the Deed ol Guarantee arc furnished to it duly executed by the parties.
6. The bank shall agree, in consideration of the guarantee
which Ls available to it from the Surety :—
(a) to pay or credit to the account of the Surety uuy amount which will be realised from the_ society after the date on which the Surety has reimbursed tho amount guaranteed, after it has realised in full the loans and advances guaranteed by lhe Surety;
(b) to retain all the promissory notes or unrealised secu- rities which may be available to the Bank in respect of the loan granted by it to the Society even after realisation by it in full of the outstanding due to it. till the amount reimbursed by the Surety is realised ;
(c) to obtain from the Society and to furnish to tho Surety, a letter of consent in the form provided in th" Second Schedule hereto ;
(d) If so required by the Surety, to transfer all such promissory notes or securities to the Surety, ami/or his nominee, after the Bank has realised in full tho outstanding due to it, but if the Surety has not been reimbursed the amount paid by it; and
(e) to obtain from the Society and furnish to the Surety an agreement in the form provided in the First Schedule to the Deed of Guarantee annexed hereto, as provided in the Clause 5 hereto,
7. The Surety's guarantee will not extend to the interest
on the loans and advances sanctioned to the society.
8. The obligations of the Bank in pursuance of the provi- sions of clause (61 shall continue until such time as the amount reimbursed by lhe Surety has been paid or credited to tho Surety, or until the Surety has agreed to adjust the said amount against any other amount due to be paid by it to tht: Bank or to the Society or to waive the recovery of the amount.
9. The Surety's guarantee shall not be invoked on more than one occasion by the Bunk in respect of the Society and if or after the Surety's guarantee has been invoked, any loan or advance is granted to the Society on whose behalf any amount has been paid to the Bank by the Surety, any such loan or advance shall be at the Bank's own risk and the Surety will have no liability on account of such further loan or advance.
10. No loan or advance granted for the first time on or after the 1st April, 1484, and no increase in the amount out- standing in respect of anv loan or advance subsisting on the 31st March, 1984, will be guaranteed _ by the Surety. The Surety's liability shall become determined at the close of business on the 31st March, 1984.
11. The Surety shall be entitled to obtain from the VianX such informat'on and returns relating to the loans and ad- vances, in respect of which this guarantee is available to tho Bank and the Bank shall furnish such information or returns at such intervals and in such manner as may be specified or required by the Surety.
12. If there is any difference or dispute between the patties hereto, arising out of or in connection with this agreement or concerning the meaning or interpretation thereof or other- wise howsoever in relation to this agreement, the same shall be referred to the sole arbitration of the person holding for the time being the post of Additional Legal Adviser (Arbitrst;on) to the Government of India and a-cision of the said officer shall be final and binding on both tko parties, tt will be no objection that the arbitrator is a Government Servant, that he had to deal with the matters to which this guarantee relates or that, in course of his duties as a Government Servant, ho has expressed views on all or any of the matters in dispute or difference. The provisions of the Arbitration Act, 1940 or
5C0 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]any statutory modification or re-enactment thereof shall apply to such arbitration. The arbitration proceedings shall be held at such place as the Arbitrator may decide. The Arbitrator shall be entitled with the consent of the parties, to extend from time to time the time for making the award.
13. The Stamp duty, if any, payable on this Deed of
Guarantee shall be borne by the President of India.
14. In witness whereof the Surety and the Bank have caused these presents to be duly executed the day and year above mentioned.
i
Signature of the Officer Incharge (Guarantee and Operations) In the Government of India in the Ministry dealing in Consumei Cooperatives, acting in the premises for an on behalf of the President
of India. In the presence of :—
Witness .
(1) (2)
FIRST SCHEDULE
AGREEMENT
This agreement made this day of
between- the President of India (hereinafter called "The Central Government" which expres- sion shall unless excluded by or repugnant to the context be deemed to include his successors in Office and assigns) of the one part and a cooperative society regis- tered under the and having its registered/ central/head office at — (.hereinafter referred to as "The Society" which expression shall unless excluded by or repugnant to the context be deemed to include its exe- cuters, administrators, representaives and permitted assigns and successors) on the other part, witnesseth as follows :—
In consideration of—
•—•—Bank making loans, advancs, cash credit limits and other banking facilities and accommodations to the Society, inter alia on the. Central Government guaranteeing repayment of a part of the loan and advance made to the society by the Bank, the Society hereby undertakes to the Central Government:—
(i) to pay the dues of the Bank regularly and promptly in accordance with the conditions laid down by the Bank while sanctioning the loan advance or cash credit;
(ii) to carry on the business of the society diligently with
a view to making profit;
(iii) to implement a stem of regular verification of stocks, followed by prompt assessment of shortages, fixation of responsibility therefor and recovery of their value from those responsible;
(iv) to exercise strict caution in the extension of credit facilities to societies, institutions and individuals, combined with measures for systematic and prompt recovery;
(v) to ensure preparation of quarterly trading and profit and loss account and balance-sheet as on the last day of each quarter, together with preparation of a quarterly management report on the society's work- ing and submit a copy of it to the Central Govern- ment and also to the State Government every quarter;
(vi) to keep the properties and assets of the society free from encumbrances and attachment's except those in favour of tjre Bank and in respect of which the Government has given guarantee to the Bank or those in favour of State/Central Government; and
(vii) to provide all facilities to the Central Government or any person or persons nominated by it in this behalf to examine the accounts and its working;
1. The Society guarantees to the Central Government repay, ment of all monies that may be recovered by the Bank from the Central Government on account of any default on the part of the Society on demand without demur.
i. All disputes and differences arising out of or in any way touching or concerning this agreement, excepting Clause 2 above shall be referred to the Sole Arbitration of the person holding the post of Additional Legal Adviser (•Arbitration) Government of India. It will be no objection that the arbi- trator is a Government servant or that he had expressed views in all or any of the matters in dispute or difference. The provisions contained in the Indian Arbitration Act shall apply to such arbitrations. The award of the Arbirrator shall be final and binding on both the parties.
Signed by (name and designation) for and on behalf of the PESIDENT OF
INDIA
Witness : 1. - — 2.
Signed by the Authorised representa- tive (s) of the Society fname and
designation).
SECOND SCHEDULE
LETTER OF CONSENT
To 1. _ Bank.
... - 2. President of India in consideration of the President of India (hereinafter refer- red to as the President) having agreed to guarantee the repay- ment of a part of the loans and advances made to the (Name of the society) by the (Name of the Bank) (hereinafter referred to be "the Bank'"), we hereby agree that any promissory note and any security by way of pledge, or hypothecation of goods, which would include book debts, securities, investments and other movable property, that we have given and may give to the Bank in connection with such loans and advances shall be subsisting and may be retained by the Bank, notwithstanding (he fact that in pursu- ance of the guarantee given to the Bank by the President, the President may have made good any deficit in our account.
We further agree—
(a) to continue to pay interest on any amount paid to the Bank by the President in pursuance of the President's guarantee at the same rate at which interest has been or may be charged by the Bank on the loan or advance made to us till the said amount is paid to or adjusted in favour of the President;
(b) td credit or to permit the Bank to credit to the account of the Surety of all the amounts paid by or recovered from us on account of the loan or advance, after the date on which the President has reimbursed any amount to the Bank in pursuance of the President's guarantee but after the Bank s claim in respect of the loans and advances covered by the President's guarantees has been fully satisfied and so long as the amounts reimbursed by the Presi- dent together with the interest and charges thereon have not been reimbursed by us;
(c) to the Bank continuing to have and to exercise ail the rights over the securities in favour of the Bank in respect of all such loans and advances till all such claims of the President as are referred to in clause (b) are also satisfied ; and
(d) to the Bank transferring its rights and claims under such securities to the President, if so required by or on his behalf.
Witnesses: 1. 2. _
Signature by the Authorised representative (s) of the Society
(Name and designation)