- Before the license to work a Bonded Warehouse is granted by the Excise Commissioner, the applicant shall require to pay a license fee as prescribed in rule 19(III) of these Rules and shall execute a hypothecation deed in the form prescribed in these rules pledging the warehouse with the stock of foreign liquor, vats, all apparatus and utensils therein for the due discharge of all payments which may become due to the State Government by way of duty, fees, rents, fines, penalties or otherwise under the provision of the license or to which the applicant may be liable by law or rules under any agreement or bond into which he may have entered.

Provided that the licensee of a Bonded Warehouse shall not be allowed to re-hypothecate the Bonded warehouse and the stock therein to any other agencies like Banks etc.