MSTAR

Release of Prize Money

Release of Prize Money

At MStar Chits, the prize money will be disbursed to the successful (prized) subscriber before the next auction date, provided adequate security is furnished to cover the future liability of the chit. Acceptable forms of security include Personal Guarantee, Bank Guarantee, Immovable Property, or any other form deemed satisfactory by the Foreman. The nature of security usually applies to one chit only; however, if a subscriber holds multiple chits, the combined future liability will be considered for security purposes, regardless of whether the chits are in the same or different branches.
Additionally, if a subscriber has stood as a guarantor for another subscriber in the same or a different chit group, all such future commitments will also be considered while evaluating the total liability. The company reserves the discretion to allow a person to act as a surety for more than one chit.
Following the auction, the prized subscriber must discuss the proposed security or surety with the Branch In-Charge and obtain their approval. A completed proposal form must be submitted within 7 days from the date of the auction for further processing. Based on this, the final documents will be prepared and must be signed by the subscriber and guarantors in the presence of the branch officials or authorized representatives of the company.
The prize money will be released only via “Account Payee” cheque. For outstation subscribers, payment may be made through bank draft, subject to deduction of applicable D.D. charges.

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