118 



GJ 



in the case of mis- 

 application of loan, or 

 of discovery of un- 

 trnth of statements 

 made by applicant or 

 his sureties. 



(5) Notwithstanding anything contained in clause (4) of this 

 rule, in all cases where suspension of revenue or rent has been granted 

 on a large scale over a wide area, a suspension of payment of instal- 

 ments due during the period for which suspension of revenue or rent 

 has been granted, shall be made by the Collector without reference 

 to any higher authority, and the effect of such suspension shall be 

 to postpone for one instalment period at a time the payment of all 

 remaining instalments due on the loan. 



22. (1) If at any time it is proved to the satisfaction of the 

 Interest to be levied Collector that any part of a loan has been 



misapplied, or that it is not being spent on 

 the work for which it w r as intended, or that 

 the statements made by the applicant in his 

 application for the loan"*'*'* or by his sureties in 

 their bond proffering collateral security, as to the nature and extent of 

 the encumbrances on the immovable property pledged as security 

 for the repayment of the loan, are in any particular untrue, the 

 Collector may, after recording in writing the grounds of his decision, 

 and subject to the control of the superior Revenue Authorities, 

 proceed to recover the whole amount of the loan, with such 

 interest as may have become due thereon at the rate of 12i per cent, 

 per annum, from the date on which the loan was made to the date of 

 recovery. 



(2) Before determining to take action under clause (1) of this 

 rule, the Collector shall take into consideration the expense of 

 supervision, even when that may have been supplied by the debtor 

 himself. 



23. (1) In the circumstances described in rule 22, interest shall 

 Interest for interven- also be levied at 12 J per cent, per annum for the 



ing period. period intervening between the date of the 



completion of the loan (in cases in which loans are granted in one 

 payment), or between the dates of the payment of the instalments (in 

 cases in which loans are granted in instalments), and the date from 

 which the first instalment of interest, consolidated with the first instal- 

 ment of the principal, becomes payable. 



(2) The interest leviable in such cases shall be demanded in a 

 lump sum on the date on which the first consolidated instalment of 

 principal and interest is made payable. /, 



