Bombay trust act,1950-loan to be taken by trust

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2013 A Trust wants to construct a Community Hall, for which the members have declared the Donation. However the donation will not be paid at once but it will be paid in Installments .Meanwhile the Trust needs to make the payment to the Builder,for which Trust wants to take unsecured loan without interest from members or from Outsiders . The loan will be repaid out of the donation received later on .
Please guide us whether trust can take loan without permission from the Charity Commissioner or if permission required, then please let us know the procedural requirements for taking the Loan as per Bombay Public Trust Act,1950?

suresh

suresh (Expert)
Follow

12 December 2017 A trust can borrow money after following the provisions mentioned u/s.36A of the BPT Act, 1950. The following details/clarifications are required to the Office of the Charity Commissioner for obtaining sanction for borrowing money for a trust

Whether the instrument of trust contains any directions with respect to borrowing of money ( whether by way of mortgage or otherwise)

What is the necessity of the proposed borrowing?

Whether all the trustees are unanimously in favour of the proposed borrowing?

The name of the person / institutions from whom monies are to be borrowed and their relation with trust or trustees, if any.

Loan amount

Banks approval letter to advance of loan containing terms and conditions of the loan etc.

File an affidavit in support of the application along with the undertaking that the loan will be used only for the purpose it is being raised

What is rate of interest?

State whether accounting reports are filled up-to date or not?

How the loan is proposed to be repaid?

If the loan is being raised for the construction of the building then the estimation cost of the construction

Whether copy of the budget scheme is submitted in the office of the charity commissioner or not?

What is the cadastral Survey Number along with the full schedule of the property address I any immovable property has to be mortgaged

What is the present net annual income from the property?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now