CONTENTS - Central Public Works Department

156 SECTION 21
(iv) Municipal debentures or Port Trust Bonds
and/or debentures issued by the State
FinancialCorporations
(v) Bonds or debentures issued by corporate
bodies established by or under any Central
Act, which are guaranteed by the Central
Government as regards the payment of
principal and interest, or as regards the
payment of principal only.
(vi) Deposit Receipts of scheduled banks
including State Bank of India and its
subsidiary banks.
Explanatory notes:
(1) When National Savings, National Plan, or National
Plan Savings Certificates, etc. are to be accepted
as security deposit in favour of the President, the
Divisional Officer accepting them on behalf of the
President is required to give the following
certificates:”I am duly authorized under Article 299
of the Constitution vide notification no. GSR no.
585 dated 1.2. 1966 by the Government of India
in the Ministry of………….. to execute such
instruments or deeds on behalf of the President
of India.”
(2) In the case Post Office Savings Bank (Security
Deposit Account) Pass Book obtained as
security deposit, at the time of release to the
parties concerned, a letter should be addressed
to the Post Master concerned advising him of
the release of the pledge on the pass book. This
letter should be signed by the pledgee himself.
These securities shall be accepted at 5% below
their market price or at their face value,
whichever is less, and shall be dealt with in
accordance with the rules in chapter IX of the
Government Securities Manual.
These securities should be accepted at 5% below
their market price, or at their face value,
whichever is less. It should be verified that the
guarantees by the Central Government have not
been revoked and continue to be in force.
Security in these forms should not be accepted
unless the transfer of title to the concerned officer
accepting the security on behalf of the
Government has been or can be validly
accepted, and, if necessary, registered (or it has
been ascertained that the said transfer will be
made or registered) on the books of the
corporate body. The fees or other expenditure
regarding transfer or re-transfer will be borne by
the contractor.
(1) The Deposit receipt shall be made out in the name
of the pledgee, or, if it made out in the name of the
pledger, the Bank shall certify on it that the deposit
can be withdrawn only on the demand, or with the
sanction of the pledgee. The Bank shall agree that
on receiving a signed treasury challan and
withdrawal order from the pledgee in respect of
the deposit, or any part thereof, it will at once remit
the amount specified into the nearest Treasury/
specified Bank along with the challan, and send
the Treasury/Bank receipt to the pledgee.