Power of Board to borrow

(1) Subject to the provisions of the Act and to such conditions as may be prescribed, the Board may from time to time borrow money required to carry out the purpose of this Act from any Scheduled Bank or a Corporation owned or controlled by the Government of India or the State Government. (2) The rules made by the State Government for the purposes of this section may empower the Board to borrow by the issue of debentures and to make arrangements with bankers. (3) All debentures issued by the Board shall be in such form as the Board, with the sanction of the State Government may from time to time determine. (4) Every debenture shall be signed by the Chairman and one other member of the Board. (5) Loans borrowed and debentures issued under this section may be guaranteed by the State Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the State Government. (6) The Board shall be competent to mortgage by way of security any of its properties for loan obtained from the Housing and Urban Development Corporation, New Delhi or from any Scheduled Bank or from any other recognised Housing Financial Institutions.