Para 6.11 — MSO (A&E)
Original Rule Text
6.11 A copy of the account as thus made up and of the new statement of demand should be sent to the debtor.
# SINKING FUND
What This Means
After the loan account is made up at the end of a half-year or year, a copy of the updated account and the new statement of demand (showing principal and interest due) must be sent to the borrower. This keeps the debtor informed of their outstanding obligations and the amounts they need to pay in the coming period.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1A copy of the made-up account is sent to the debtor after each period closes
- 2The new statement of demand accompanies the account copy
- 3This ensures the borrower knows exactly what they owe in principal and interest
- 4Regular communication helps prevent disputes over balances
Practical Example
After closing the half-yearly loan account on October 16, the AG's Loan Section sends the Kanpur Municipal Corporation a statement showing: principal outstanding Rs. 3.2 crore, interest due for the past half-year Rs. 9.6 lakh (of which Rs. 7.2 lakh was paid, leaving Rs. 2.4 lakh overdue), and the new demand of Rs. 16 lakh principal instalment plus Rs. 6.4 lakh interest due by April 16 next.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Is sending the account copy to the debtor mandatory?▼
Does the debtor's failure to object to the statement mean acceptance?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.