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Power
of Board to borrow.
Gurantee of loans.
Conversion of amount of loans into capital.
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65.
(1) The Board may, from time to time, with the previous sanction
of the State Government and subject to the provision of this
Act and to such conditions as may be prescribed in this
behalf, borrow any sum required for the purposes of this Act.
(2) Rules made by the State
Government for the purposes of this section may empower the
Board to borrow 1[issue of debentures or bonds] or otherwise
and to make arrangements with bankers, and may apply to the
Board with such modifications as may be necessary to be consistent
with this Act the provisions of the Local Authorities Loans
Act, 1914, and the rules made thereunder as if the Board were
a local authority.
(3) The maximum amount which
the Board may at any time have on loan under sub-section (1)
shall be ten crores of rupees, unless the State Government,
with the approval of the State Legislative Assembly, fixes
a higher maximum amount.
(4) 2[ Debentures or bonds issued]
by the Board under this section shall be issued, transferred,
dealt with redeemed in such manner as may be prescribed.
66.
The State Government may guarantee in such manner as it thinks
fit the payment of the principal and interest of any loan
proposed to be raised by the Board or or either the principal
or the interest:
Provided
that the State Government shall, so long as any such guarantees
are in force, lay before the 3[House] or , as the case may,
4[Houses] of the State Legislature in every year during the
budget session a statement of the guarantees, if any, given
during the current financial year of the State and an up-to-date
account of the total sums, if any, which have been paid out
of State revenues by reason of any such guarantees or paid
into State revenues towards repayment of any money so paid
out.
5[66A.
(1) Notwithstanding anything contained in section 12A, where
any loan has been obtained from the State Government by a
Board, in respect of which Board a notification has been made
under sub-section (1) or that section, or any loan is deemed
to be advanced to such Board by the State Government under
sub-section (2) of section 60, the State Government may, if
in its opinion it is necessary in the public interest so to
do, by order, direct that the amount of such loan or any part
thereof shall be converted into capital provided to the Board
on such terms and conditions as appear to that Government
to be reasonable in the circumstances of the case, even if
the terms of such loan do not include a term providing for
an option for such conversion.
(2) In determining the terms
and conditions of such conversion, the State Government shall
have due regard to the following circumstances, that is to
say, the financial position of the Board, the terms of the
loan, the rate of interest payable on the loan, the capital
of the Board, its loan liabilities and its reserves.
(3) Notwithstanding anything
contained in this Act, where the State Government has, by
an order made under sub-section (1), directed that any loan
or any part thereof shall be converted into capital, and such
order has the effect of increasing the capital of the Board,
the capital, and such order has the effect of increasing the
capital of the Board, the capital of the Board shall stand
increased by the amount by which the conversion increases
the capital of the Board in excess of the capital specified
under sub-section (1) of section 12A:
Provided that the amount of
the loan so converted together with the capital provided under
sub-section (3) of section 12A shall not exceed the amount
representing the aggregate of the outstanding loans of the
Board after such conversion.]
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9 of 1914. |
