Section 24   [ View Judgements ]

Discharge of a security


(1) For obtaining maturity proceeds due on a Government security, held in any of the following forms i.e.;



(a) a Government promissory note; or



(b) a bearer bond; or



(c) a treasury savings deposit certificate; or



(d) a defence deposit certificate;



the security shall be presented at the office at which the interest on the security is payable or at the Public Debt Office of domicile and signed, except in the case of a bearer bond by the holder, on its reverse, and in the case of bearer bond, coupon or coupons, if any, for the half-year preceding the date of payment of the principal shall be surrendered with the bond or bonds.



(2) (a) In the case of stock held in the subsidiary general ledger account or constituents' subsidiary general ledger account, payment of the maturity proceeds shall be made by a pay order issued by the Public Debt Office at which the stock is registered or by credit to the current account maintained with the Bank or any other account of the holder in any bank having facility of receipt of funds through electronic means;



(b) in the case of a Government security held in a bond ledger account, with the Bank or its agent, payment of the maturity proceeds shall be made by a pay order issued by the Public Debt Office or the agent, as the case may be, or by credit to the account of the holder in any bank having facility of receipt of funds through electronic means;



(c) in the case of a stock for which a stock certificate has been issued, payment of maturity proceeds shall be made by a pay order issued by the Public Debt Office at which the stock certificate is registered or by credit to the account of the holder in any bank having facility of receipt of funds through electronic means;



(d) for the purposes of making payment in respect of the securities, the original subscriber or the subsequent holders of such Government securities, as the case may be, shall submit to the Bank or its agent, as the case may be, in whose books such Government securities are registered, the relevant particulars of their bank account.



(3) Payment of maturity proceeds to the registered holder of a Government security on maturity date, in accordance with the provisions of sub-regulation (2), shall be a valid discharge for payment due thereon.



(4) A prize bond shall be presented for payment on maturity at the Public Debt Office or at any office authorised by the Government as an office of issue at the time when the loan to which the prize bond belongs was open to subscription.



(5) A defence deposit certificate shall be duly discharged by the holder on maturity and presented for payment at the Public Debt Office, New Delhi.



(6) If the Public Debt Office is of the opinion that a doubt exists relating to the title to a Government security, it may require the claimant to execute a bond in Form - XII with one or more sureties approved by the Public Debt Office, or to furnish an indemnity bond not exceeding twice the value of the security, in favour of the Bank with a right to assign the bond or security to any person.



(7) The payment in respect of the securities referred to in sub-regulation (1) shall be made by Public Debt Office in good faith and without negligence to the person who purports to be the last holder of the same and such payment shall discharge the Bank and the Government of its liability under the said security.

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