State Act
5
Section 5. Guarantee commission.
The West Bengal Ceiling On Government Guarantees Act, 2001
Act no. 17 of 20012001In forceWest Bengal (State Act)
5. (1) The Government shall charge a minimum of one per cent as guarantee commission which shall not be waived under any circumstances. (2) Depending on the default risk of the project, the Government may, by notification, specify commission at an enhanced rate. Explanation.—For the purposes of this section, ‘default risk’ means the probability of default by the borrower on whose behalf the Government Guarantee is given, depending on the amount borrowed, the type of industry and the economic situations.