Andhra Pradesh Hindu Religious Institutions And Endowments Depositing And Investment Of Moneys Rules, 1987

Section 1

1. Short title :- These rules may be called the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Money Lendingor Borrowing Rules,1987.

Section 2

2. . :- Any moneys belonging to a charitable or religious institutionor endowment may be invested: (a) in loans or promissory notes to needy but solvent religiousand charitable institutions; (b) in loans floated by the State ortral Government orUndertakings or public utility guaranteed by the State ortralGovernment. (c) in loans to Public Sector Undertakings and Statutory Corporations,such loans being guaranteed by the State Government; (d) in promissory notes, debentures, stock or other securities of the State ortral Government; (e) in stock or debentures or shares in companies, the interest wherein shall have been guaranteed by thetral or State Government; (f) in fixed deposits in a Nationalised or Scheduled Bankas defined in the Reserve Bank of India Act, 1934. (g) in the Post Office savings Bank; (h) in National Savings Certificates; (i) in Units issued by the Unit Trust of India; and (j) Housing Development Corporation Limited.

Section 3

3. The lending or borrowing of money on behalf of the institutionreferred to in Rule 1 shall be subject to the following conditions,namely :- (i) the Trustee or the Executive Officer or such other personwho is in charge of the administration of the charitable or religiousinstitution or endowment may, with the prior sanction of the competentauthority in writing, lend moneys to another institution or endowmentor borrow moneys from another institution,endowment or individuals: Provided that borrowing moneys from individuals can be resortedto only in exceptional cases when other avenues have failed and lendingto individuals is prohibited. (ii) every application seeking sanction to borrow or permissionto lend moneys shall be made to the competent authority and shall contain the following particulars namely:- (a) necessity and urgency for raising a loan lending money; (b) amount of loan required proposed to be lent; (c) from whom it is proposed to borrow to whom it is proposedto lend; (d) financial position of the charitable or religious institution or endowment on the date of application; (e) period by which loan would be repaid recovered; (f) number of instalments and the amount of each instalment; (g) probable income and anticipated expenditure during the intervening period; and (h) purpose for which the loan is sought for. (iii) When the amount is sought to be borrowed from the trusteeor an employee of the charitable or religious institution or endowmentor from any other individual, his consent in writing to lend the required money shall also be sent; (iv) the competent authority shall, before according sanctionto a charitable or religious institution to lend or borrow money,satisfyhimself as to its capacity to lend or borrow; (v)the competent authority shall specify the time by whichthe loan shall be repaid, stipulate the number of instalments, ifnecessary, and fix the rate of interest, if any, payable on the loan: Provided that, in the case of lending or borrowing of moneysbetween charitable or religious institution, the competent authoritymay waive the recovery of interest either in whole or in part: (vi) in all cases of lending or borrowing of moneys promissorynotes shall be executed on behalf of or in favour of the trustee orthe Executive Officer of the concerned institution.

Section 4

4. . :- The Competent authority to sanction the lending and borrowingof moneys shall be (a) the Regional Joint Commisioner to a limit of Rs.10,000(Rupees ten thousand) in respect of institutions published under Sec.6 (b) and (c) of the Act; (b) the Commissioner upto a limit of Rs.50,000 (Rupees fiftythousand), in respect of all institutions and endowments includingall Maths and Dharmadayam; and (c) the Government, if the amount of loan exceeds Rs.50,000(Rupeesfifty thousand)in respect of all institutions and endowments: Provided that, in respect of the sanction of loan to any of the State Undertakings referred to in sub-rule (b) or the investments under sub-rule(e) of Rule 1, the prior sanction of the Governmentshall be obtained.