State Act

THE KARNATAKA MONEY-LENDERS ACT, 1961

1[7A. Conditions of licence.— 1[(1) Every money lender applying for grant of a licence under section 7 for the first time or for grant of a fresh licence under that section for the succeeding term, shall at the time of making such application, pay security deposit as provided in sub-section (2).]1 (2) Every licensee specified in column (2) of the Table below shall, in the prescribed manner, deposit in the Government Treasury the amount specified in the corresponding entry in column (3) of the said Table by way of security for the due observance of the conditions of the licence. TABLE 1 2 3 (1) A licensee who 1[invests]1 less than one lakh rupees in a year. Five thousand rupees. (2) A licensee who 1[invests]1 one lakh rupees and above and less than five lakh rupees in a year. Ten thousand rupees. (3) A licensee who 1[invests]1 five lakh rupees and above but less than ten lakh rupees in a year. Twentyfive thousand rupees. (4) A licensee who 1[invests]1 ten lakh rupees and above in a year. Fifty thousand rupees. (3) For the purposes of sub-section (2), the amount of the security payable in a year by a licensee shall be determined on the basis of the 1[the amount invested by him in the business during the previous year]1 2[and such security deposit shall not carry any interest]2: Provided that in the case of a new licensee or a person who was a licensee only for a portion of the preceding year the amount of security shall be determined on the basis of a declaration in the prescribed form as to the amount which he is likely to 1[invest]1 during the year, filed before the Registrar in the prescribed manner.