(1) Every dealer or person who is required under any of the provisions of the Act or the rules to furnish a security, shall furnish it in any of the following forms:-

(i) in cash, which shall be paid in accordance with rule 39; or

(ii) by depositing, with the officer concerned, savings certificates issued by the Government of India of a face value not less than the amount of security required to be furnished, duly endorsed in favour of the officer concerned; or

(iii) by furnishing to the officer concerned a bank guarantee payable by a branch situated in the State, agreeing to pay to the State Government or any of its officer, on demand the amount of security fixed by the officer concerned; or

(iv) by executing a bond in Form VAT-64, with necessary modifications where necessary, with two sureties acceptable to the officer or authority concerned.

(2) The security shall be furnished by the dealer or person in such manner as notified by the Commissioner, in this behalf.