law: Chit Funds Act, 1982
  6.Form
  
  of chit agreement.-
  (1)Every
  
  chit agreement shall be is duplicate and shall be signed by each of the
  
  subscribers or by any person authorised by him in writing and the foreman and
  
  attested by at least two witnesses and it shall contain the following
  
  particulars, namely:-
  (a)full name and residential address of every subscriber;
  (b)the number of tickets including the fraction of a ticket held by each
  
  subscriber;
  (c)the number of instalments, the amount payable for each ticket at every
  
  instalment and the interest or penalty, if any, payable on any default in the
  
  payment of such instalments;
  (d)the probable date of commencement and the duration of the chit;
  (e)the manner of ascertaining the prizing subscriber at each instalment;
  (f)the maximum amount of discount which the prized subscriber has to
  
  forego at any instalment;
  (g)the mode and proportion in which the discount is distributable by way
  
  of dividend, foreman's commission or remuneration or expenses for running the
  
  chit, as the case may be;
  (h)the date, time and place at which the chit is to be drawn;
  (i)the instalment at which the foreman is to get the chit amount;
  (j)the name of the approved bank in which chit moneys shall be deposited
  
  by the foreman under the provisions of this Act;
  (k)where the foreman is an individual, the manner in which a chit shall
  
  be continued when such individual dies or becomes unsound mind or is otherwise
  
  incapacitated;
  (l)the consequences to which a non-prized or prized subscriber or the
  
  foreman shall be liable in case of violation of any of the provisions of the
  
  chit agreement;
  (m)the conditions under which a subscriber shall be treated as a
  
  defaulting subscriber;
  (n)the nature and particulars of the security of to be offered by the
  
  foreman;
  (o)the dates on which and time during which the foreman shall, subject
  
  to the revisions contained in section 44, allow inspection of chit records to
  
  non-prized and unpaid prized subscribers;
  (p)the names of the nominees of each subscriber, that is to say, the
  
  names of the persons to whom the benefits accruing to the subscriber under the chit
  
  may be paid in the case of the death of the subscriber or when he is otherwise
  
  incapable of making an agreement;
  (q)any other particulars that may, from time to time, be prescribed.
  Explanation.- For the purposes of this sub-section, it shall be sufficient if the
  
  signature of each subscriber is obtained in separate copies of the agreement.
  (2)The duration of a chit shall not extend beyond a period of five years from
  
  the date of its commencement;
  Provided
  
   that the State Government may permit the
  
  duration of a chit up to a period of ten years if it is satisfied that it is
  
  necessary so to do, having regard to,-
  (a)the
  
  financial condition of the foreman;
  (b)his
  
  methods of operation;
  (c)the
  
  interests of prospective subscribers;
  (d)the
  
  requirements as to security; and
  (e)such
  
  other factors as the circumstances of the easy may require.
  (3)The
  
  amount of discount referred to in clause (f) of sub-section (1) shall not
  
  exceed their per cent, of the chit amount.
  (4)Where
  
  the prized subscriber at any instalment at any instalment of the chit is
  
  required to be determined by auction and more than one person offer the maximum
  
  discount, the prized subscriber shall be determined by lot.