Insertion of Rule 25 regarding security, interest and additional interest of SDF loan dated 9th March, 2007

(ili); 'l'0j'F. I ~Wlm,~~ MIN"JSTRY OF CONSlJMER AFFAIRS, FOOD (Department ofFood and Public Dlstribotion) NOTIFICATION New Delhi, the 9th March, 2007 G.S.R 18S(E).-In exercise of the powers confcrreJ by Section 9 of the Sugar Devclopmcnl FuuP Act, 1982 (4 of 1982), tbe Central GoverllJ)lCOl hereby makes the following rules f-urther to amend the Sugar De·vcloprnent Fund Rules, 1983, namely:- L (1) These rules may be called L.1.e Sugar Development fund (Amendment) Rules, 2007. (2) They shall come into force on the elate of their publication in Official Gazette. 2. In the. Sugar Development Furid Rules 1983, after rule 24, the foUowing chapter shall be inserted, namely:- HChapter XIV Security, interest and additional intenst on Sugar DcvelopmentFund loans 25. (1) The security, interest and additional interest for !he loans given under Sugar Development Fund Rules 16, 17, 21, 22, and23 from the Fund shall be governed as follows. (2) The loans shall carry a concessioual rate of simple interest of 2% below the Bank Rate. (3) In case of any default in repayment of the amount of loan or payment of a.TJ.y instalment thereof or interest thereon (in accordance with the Rules), an additional interest at the rate of tvto and half per cent per annum o~ the amou.ut of default shall be payable by the sugar factorj. (4) The sugar factory shall, after the execution of the agreement required to be entered into and before the disbursement of the loan Ulldcr Rules, furnish security for the loan to the satisfaction of the-Central Government. (5) Thesecurity shall cover the amount of loan and interest thereon for the full period of repayment as provided in the Rules and further a~ditional interest on the amount of default as provided in sub-rule (3) above, and shall be furnished in any of the followillg manners nameiy:- (i) Bank Guarantee from a Scheduled Bank; or (ilJ /\. mortgage 011 all immovable and movable properties of the sugar factory on pari passu first charge basis failing which on lhc basis of an exclusive second charge : Provided that in case of sugarcane Ucvclopmcut loan under Rules 17 and 21. a cooperative sugar factory can furnish the security in the form of State Governrnent Gwtrantce. (6) · In case of two consecutive defaults in repayment of thc1oan or in.sta.lment thereOf, the Central Government shall realise the entire amoLmt of \{)an alongwith the interest and the ac.Jdi!llm.al interest t1JcrcorJ from any of tl1e sc~.:urity provided for the loan under sub~rule (5) above or any claim of U1c sugar factory against the Central GovcmmenL" J. The following sub-mlcs shall he deleted:- clause (iii) (ii) ·In Rule 17, sub-rule (3), clause (a), the words from "The. amount of Joan" to "two per cent Oelow ilie bank rate and"; and sub-rule 3(b). (iii) In Rule 17A, sub-rul"' (8) (11) and (12); (iv) [n Rule 2 {, in sub-rule {11) clause (iii) and in suh-mle ( 13) clause (iii); (v) In Rule 22, silb-rulcs (13), (16) and (18) and (vi) In Rule 23. sub-rules (!5), ( 16) and (18) IUJd pwviso under sub-cult~ 18. SUNIL PORWAL, Jt. Secy. Foolnote: The Principal rules were published in the Gazctlc scclion (i) dated 28.9.!983 vide No. G.S.R. 752(E) and were previously amended by the following notifications:- (xvi) GSR895(E)datcd 19-1 1-2003; Printed by the Manager, Govt. of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controlkr of Public:1tions, Ddhi-110054.