(1) A foreman shall, out of the amounts payable by and realized from the substituted subscriber towards the instalments relatable to the period before the date of the substitution (including the arrears due from the defaulting subscriber), deposit, before the date of the next succeeding instalment, in a separate identifiable account in an approved bank mentioned in the chit agreement, an amount equal to the contributions made by the defaulting subscriber less such deductions as may be provided for in the chit agreement, and shall inform the defaulting subscriber as well as the Registrar of the fact of such deposit and shall not withdraw the amount so deposited except for payment to the defaulting subscriber.
(2) The amount so deposited under sub-section (1) shall be paid to the defaulting subscriber as and when he claims the amount and the amount so deposited shall not be withdrawn by the foreman for any purpose other than for such payment.
(3) The contributions of any defaulting subscriber who has not
been substituted till the termination of the chit shall be paid to him
within fifteen days from the date of termination of the chit subject to such
deductions as may be provided for in the chit agreement.
Section 21 of Chit Funds Act - Rights of foreman
Section 22 of Chit Funds Act - Duties of foreman
Section 23 of Chit Funds Act - Books, records, etc., to be kept by foreman
Section 24 of Chit Funds Act - Balance sheet
Section 25 of Chit Funds Act - Liability of foreman to subscribers
Section 26 of Chit Funds Act - Withdrawal of foreman
Section 27 of Chit Funds Act - Non-prized subscribers to pay subscriptions and obtain receipts
Section 28 of Chit Funds Act - Removal of defaulting subscribers
Section 29 of Chit Funds Act - Substitution of subscribers
Section 30 of Chit Funds Act - Amounts due to defaulting subscribers