Vidhi Codex

section 5

Issue of debentures

The Madhya Pradesh Sahakari Krishi Aur Gramin Vikas Bank Adhiniyam, 1999
Finance199963 sections
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Statutory text
  1. (1) With the previous sanction of the State Government and the trustee, the State Development Bank may issue debentures of one or more denominations for— (i) such periods and at such rates of interest as it may deem expedient against one or more securities held or partly held or partly be acquired or other assets taken by it and other assets and securities of District Development Bank transferred or deemed to have been transferred to it under the provisions of section 20; (ii) the purpose of providing loans to a company or any other body corporate established, registered or constituted, as the case may be; under any law for the time being in force and approved for that purpose by the State Government, on the strength of such Government Guarantee and with or without other securities and other assets, for such periods as it may deem expedient.
  2. (2) The State Development Bank shall have the right to call in, at any time, any of the debentures in advance of the date fixed for redemption after issuing a notice in such manner as it may prescribe to the debenture holders.
  3. (3) The total amount due on the debentures issued by the State Development Bank, and outstanding at any time, shall not exceed the aggregate of the amount due on the securities and other assets and Government Guarantee referred to in clause (ii) of sub-section (1) and the amounts paid thereunder and remaining with the State Development Bank or the Trustee at such time.
  4. (4) Where debentures are issued otherwise than against mortgages held, the total amount due on debentures issued by the State Development Bank for the purpose specified in sub-section (1) and outstanding at any time shall not exceed the total amount as calculated under sub-section (3) increased by such portion of the amount obtained on the debentures as is not covered by mortgages to such extent as may be approved by the State Government under sub-section (1).

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