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Issue of debentures by the Board

§6

Summary

6. Issue of debentures by the Board. - 1[(1) With the previous sanction of the State Government and the Trustee and subject to such terms and conditions as the State Government may impose, the Board may from time to time, issue debentures of one or more denominations, for such period or periods as it may deem expedient, against the unconditional guarantee by the State Government for repayment in full of the principal and payment of interest thereon or on the security of mortgages, charges or hypothecations partly held and partly to be acquired and the properties and other assets transferred or deemed to have been transferred under the provisions of Section 12 by the 2[Gram Vikas Banks] to the 3[Uttar Pradesh Gram Vikas Bank] and other properties of the 3[Uttar Pradesh Gram Vikas Bank];] . 4[(2) Provided that no debenture shall be issued otherwise than in conformity with such directions or instructions as may be issued by the Reserve Bank of India, or the National Bank for Agriculture and Rural Development, from time to time.] (3) Such debentures may contain a term fixing a period not exceeding 5[twenty years] from the date of issue during which they shall be irredeemable, or reserving to the Board the right to call in at any of the debentures in advance of the date fixed for redemption, after giving to the debenture holders concerned not less than three months' notice in writing. 1[(4) The total amount due on debentures already issued by the Board under sub-section (1), together with the amount of any debentures proposed to be issued, shall not exceed the aggregate of- (a) the amounts due. on the mortgages or charges or hypothecations 6[or any loan advanced against the unconditional guarantee by the State Government] and the value of other assets transferred or deemed under Section 12 to have been transferred by the 2[Gram Vikas Banks] to the 3[Uttar Pradesh Gram Vikas Bank]; (b) the accumulations in the Debenture Redemption Fund; (c) the cash in hand and the balance with the banks and the book value or market value of securities under general funds, whichever is less; and (d) such percentage of the amounts mentioned in clauses (a), (b) and (c), as may be prescribed.]

6. Issue of debentures by the Board. - 1[(1) With the previous sanction of the State Government and the Trustee and subject to such terms and conditions as the State Government may impose, the Board may from time to time, issue debentures of one or more denominations, for such period or periods as it may deem expedient, against the unconditional guarantee by the State Government for repayment in full of the principal and payment of interest thereon or on the security of mortgages, charges or hypothecations partly held and partly to be acquired and the properties and other assets transferred or deemed to have been transferred under the provisions of Section 12 by the 2[Gram Vikas Banks] to the 3[Uttar Pradesh Gram Vikas Bank] and other properties of the 3[Uttar Pradesh Gram Vikas Bank];] . 4[(2) Provided that no debenture shall be issued otherwise than in conformity with such directions or instructions as may be issued by the Reserve Bank of India, or the National Bank for Agriculture and Rural Development, from time to time.] (3) Such debentures may contain a term fixing a period not exceeding 5[twenty years] from the date of issue during which they shall be irredeemable, or reserving to the Board the right to call in at any of the debentures in advance of the date fixed for redemption, after giving to the debenture holders concerned not less than three months' notice in writing. 1[(4) The total amount due on debentures already issued by the Board under sub-section (1), together with the amount of any debentures proposed to be issued, shall not exceed the aggregate of- (a) the amounts due. on the mortgages or charges or hypothecations 6[or any loan advanced against the unconditional guarantee by the State Government] and the value of other assets transferred or deemed under Section 12 to have been transferred by the 2[Gram Vikas Banks] to the 3[Uttar Pradesh Gram Vikas Bank]; (b) the accumulations in the Debenture Redemption Fund; (c) the cash in hand and the balance with the banks and the book value or market value of securities under general funds, whichever is less; and (d) such percentage of the amounts mentioned in clauses (a), (b) and (c), as may be prescribed.]

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