Guarantee by Government on principal of and interest on debentures issued under section 4

(1) The principal of and the interest on the debentures issued under section 4 to such maximum amount as may be fixed by the Government and subject to such conditions as they may think fit to impose, shall, subject to the provisions of sub-section (3), carry the guarantee of the Government. (2) The Government may, after consulting the State Legislative Assembly, increase the maximum amount of any guarantee given by them. (3) The Government may, after consulting the Board and the Trustee,— (a) by notification in the Gazette, and (b) by notice for not less than 14 days in such of the principal newspapers in the State and in other States in India, as the Government may select in this behalf, discontinue any guarantee given by them or restrict the maximum amount thereof or modify the conditions subject to which it is given, with effect from a specified date, not being earlier than six months from the date of publication of the notification in the Gazette. In cases where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, the notification and notice aforesaid shall set forth, with sufficient clearness, the scope and effect of the restriction or modification. Explanation.—The withdrawal, restriction or modification of any guarantee under this sub-section shall not affect, in any way, the guarantee carried by any debentures issued prior to the date on which such withdrawal, restriction or modification takes effect.