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(1) The liability of the State of Bombay in respect of any floating debt of a
Merged State shall be the liability of the State in whose territories the area of the Merged State is included
on the appointed day.
(2) The liability of the State of Bombay in respect of any other floating loan to provide short-term
finance to any commercial undertaking shall be the liability of the State in whose territories the
undertaking is located.
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