10.10.5 — CAM
Original Rule Text
10.10.5. Invocation of Guarantee: In the event of invocation of a guarantee, the obligation may be discharged with the approval of Budget Division, Ministry of Finance by sanctioning a loan equal to the amount of guarantee outstanding/invoked. However, any payment on this account will finally be charged to the Guarantee Redemption Fund maintained in the Public Account. (Rule 283(3),GFR,2017). The expenditure as well as the recoveries, if any, should be classified in the Government account under a distinct sub-head "Loans on invoking guarantees given by Government". This will be done under the relevant loan major head, exhibiting the name of the person/party against which loan is indicated at the detailed head level. If in due course, the whole or a part of the loan amount is finally held to be irrecoverable, the same should be adjusted in the manner indicated below: