Para 6.6 — MSO (A&E)
Original Rule Text
6.6 The Subsidiary Loan Register will give the Accountant General the means of seeing that both interest and instalments are repaid on the due date, and in case of delay, he should at once address the officer who is in direct communication with the debtor or charged with the administration of the property or of the Corporation to which the loan is made. The debtor should be warned either by this officer, or, if the loan is not on any district account, by the Accountant General, when any payment, either of interest or of principal, is about to fall due from him, but omission to give this warning gives the debtor no claim to exemption from the consequences of default.
- PAYMENTS IN DISCHARGE OF LOAN
- LOAN EXPENDITURE BY PUBLIC WORKS DEPARTMENT
What This Means
The Subsidiary Loan Register enables the AG to monitor whether interest and principal instalments are paid on time. Upon any delay, the AG must immediately contact the officer responsible for the borrower or the body administering the loan. The borrower should be warned before any payment falls due, but failure to give such warning does not excuse the borrower from consequences of default — the obligation to pay on time exists independently.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Loan Register is a monitoring tool for timely repayment of interest and principal
- 2On any delay, the AG must immediately contact the responsible officer
- 3Advance warnings should be sent to borrowers before payments fall due
- 4Failure to warn does NOT exempt the borrower from consequences of default
- 5Contact may be with the district officer, administering authority, or the AG directly
Practical Example
A District Board has a Rs. 2 crore loan with a half-yearly interest payment due on October 16. In September, the AG's Loan Section sends a reminder to both the District Board and the District Collector about the upcoming Rs. 6 lakh interest payment. October 16 passes with no payment. The AG immediately writes to the Collector directing him to enforce payment and apply penal interest provisions. The District Board cannot claim that it forgot — the obligation existed regardless of the reminder.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if the AG forgets to send the advance warning?▼
Who does the AG contact in case of default — the borrower or a government officer?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.