Section 108: Provisions concerning Payment of Liabilities

1) The Management Committee shall set the following order of priority for payment of liabilities of the problematic Organisation or Association:

(a) Payment of savings to members according to the terms and conditions set at the time of depositing the amount,

(b) Payment of government dues or claims on the assets of such an Organisation or Association or assets referred to in clause (l) of Section 106,

(c) Payment of persons paying an advance amount to the problematic Organisation or Association for the apartment or land,

(d) Payment of the amount to the creditors of the problematic Organisation or Association.

2) In case the assets of the problematic Organisation or Association are not sufficient to pay all liabilities of such a problematic Organisation or Association under this Section, the Management Committee may refund the savings of and make payment of liabilities to the members on a pro rata basis. While refunding savings of members in such a manner, the Management Committee shall accord priority to small depositors as prescribed.