Rule 12 - Pledging of certificate - National Savings Certificates (VIII Issue) Rules, 1989

Pledging of certificate. 12. (1) On an application being made in the prescribed form, by the transferor and the transferee, the Postmaster of the office of registration may at any time, permit the transfer of any certificate as security to,— (a) the President of India or Governor of a State in his official capacity; (b) the Reserve Bank of India or a scheduled bank or a co-operative society including a co-operative bank; (c) a corporation or a Government company; [***] [(d) a local authority; and (e) a housing finance company approved by the National Housing Bank and notified by the Central Government]: Provided that the transfer of a certificate purchased on behalf of a minor shall not be permitted under this sub-rule unless the parent or the guardian of the minor referred to in sub-clause (i) or, as the case may be, sub-clause (ii) of clause (b) of section 5 of the Act certifies in writing that the minor is alive and that the transfer is for the benefit of the minor. (2) When any certificate is transferred as security under sub-rule (1), the postmaster of the office of registration shall make the following endorsement on the certificate, namely:— "Transferred as security to............................" (3) Except as otherwise provided in these rules, the transferee of a certificate under this rule shall, until it is re-transferred under sub-rule (4), be deemed to be the holder of the certificate. (4) A certificate transferred under sub-rule (2) may, on the written authority of the pledgee, be re-transferred with the previous sanction in writing of the authorised postmaster and when any such re-transfer is made, the postmaster of the office of registration shall make the following endorsement on the certifi cate, namely:— "Re-transferred to....." Note 1: A Gazetted Officer of the Government accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the President or the Governor of a State, shall certify under his dated signature and seal of office that he is duly authorised to execute such instru ments or deeds on behalf of the President of India or Governor of a State, giving the particulars of the number and date of the notification of the Government authorising him in this behalf. Note 2 : An officer of the Reserve Bank of India or a scheduled bank or a co-operative society including a co-operative bank, a corporation or a Government company or a local authority, as the case may be, accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the respective institution, shall certify under his dated signature and seal of office that he is duly authorised under the articles of the said institution, to execute such instruments or deeds on its behalf. (5) Where as a result of several endorsements made under sub-rules (2) and (4) on a certificate, no space is left for making further endorsements of a like character on that certificate, a fresh certificate may be issued by the postmaster of the office of registration in lieu of such certificate. (6) A fresh certificate issued under sub-rule (5) shall be treat ed as equivalent to the certificate in lieu of which it has been issued for all purposes of these rules.