RULES AND REGULATIONS

1. Chit fund auction will be held for every month of ...............
2. Subscribers who fail to pay the instalment amount on the date will not be allowed to participate in the list.
3. If for any reason the subscriber is unable to attend on the day of the ticketing, an agent may be appointed in writing to attend in place of the subscriber.
4. The ticketing date is the last date to pay the subscription amount payable by the subscriber. Pay the amount to the operator or the authorized person within this date and get the receipt. The administration will not be responsible for the amount received without a receipt. The company will not be responsible for complaints to the company based only on the details taken in the passbook without the original receipt.
5. If the subscriber does not pay the premium amount by the due date, the amount shall be paid by the next due date with 24% interest. In case of default, the administrator has the right to recover the entire amount due from him in one instalment along with interest and other expenses.
6. The Awardee Subscriber / his nominee shall, by the next date of ticketing, furnish sureties for subsequent defaults and receive the same from the administrator.
7. If the non-ticketing subscriber is unable to make the payment or withdraws from the chit fund, the company can deduct 6% commission from the amount paid so far and get the remaining amount after the expiry of the chit fund period.
8. The costs of preparing the surety bond and the stamp duty due to them and the fees required to determine the value of the property etc. shall be collected from the subscriber by the dealer.
9. In order to ensure that the person receiving the cheque regularly pays the above instalments, one or more of the sureties mentioned hereunder shall be furnished.
   • Guarantee by one or more third persons drawing a basic salary of not less than one instalment per month or by persons possessing assets of sufficient value to the satisfaction of the administrator.
   • Registering by writing a mortgage deed or an equity deed in respect of the immovable property by the third party or third party guarantors.
   • Where it appears that the collateral already furnished by the dealer or third party guarantor is not sufficient to be used in accordance with section 69 of the Transfer of Property Act, the invoice shall be deposited with the dealer to be used for the purpose of equalisation.
   • In accordance with the provisions of section 33 (2) of the Act, the amount of the ticket drawn after the said date shall be paid in writing to the person who has drawn the ticket, either individually or jointly with one or both of his / her relatives, in respect of the default.
10. The administration has full power to accept / reject the sureties.
11. The amount of the cheque shall be paid in the form of a cheque after ascertaining whether the surety is eligible for sureties once the drawer has furnished appropriate surety in accordance with the statutory scheme of the company.
12. The non-specified categories, if any, shall not be governed by the Chit Funds Act, 1982 and the Tamil Nadu Chit Funds Rules, 1984 made thereunder.