No money-lender to take blank documents

Finance195725 sections

Statutory text

(1) No money-lender, whether licensed or not, shall take from a debtor or an intending borrower any promise to pay, acknowledgment, power of attorney, bond, security or other document which does not state the amount of the loan, the rate of interest and the time, if any, within which the principal is to be repaid in full, or which states any of them incorrectly, nor shall he take from a debtor or an intending borrower any document left blank for completion at a later date.
(2) Whoever contravenes the provisions of sub-section
(1) shall be punished with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.
(3) Notwithstanding anything contained in section 21 or in any other law for the time being in force, any note, promise to pay, acknowledgment, power of attorney, bond, security, or other document referred to in sub-section
(1) shall be void and unenforceable.

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