Clause 38

The chit fund company shall be liable to each subscriber for any amount due to that subscriber in respect of the chit fund.

The chit fund company shall not be entitled to withdraw from the management of the chit fund without the written consent of all the subscribers.

Where the chit fund company is in liquidation or is being wound up, whether voluntarily or otherwise, any debt owing by the company to any subscriber under the terms and conditions of the agreement relating to the chit fund shall, notwithstanding anything contained in any other written law to the contrary, be a first charge upon any property acquired or held by it for the purposes of that chit fund, including property held by the Commissioner as security pursuant to regulations made under this Act.