Power of Board to borrow and lend

(1) Subject to the provisions of this Act the Board may, from time to time, advance any sum standing at the credit of the Board and, with the previous sanction of the State Government, borrow money required for the purposes of this Act from the public or from any Corporation owned or controlled by the Central or State Government.

(2) When ever the borrowing of any sum of money has been approved by the State Government, the Board may, instead of borrowing such sum or any part thereof from the public, take credit from any bank or any corporation owned or controlled by the Central or State Government on a cash account to be kept in the name of the Board to the extent of such sum or part thereof, and may with the previous sanction of the State Government grant mortgages of all or any of the properties vested in the Board by way of security for such credit.

(3) Subject to such conditions and limitations as may be prescribed and with the previous approval of the State Government the Board may for the promotion and execution of any housing scheme under this Act, enter into financial arrangements with any bank or other financial institutions approved by the State Government or with the Life Insurance Corporation of India established under section 5 of the Life Insurance Corporation Act, 1956 (No. 1 of 1956).

(4) Subject to the provisions of this Act, and to such conditions and the limitations as may be prescribed, the Board may out of its funds grant loans and advances or such terms and conditions as it may determine, to any Co-operative Society registered or deemed to be registered under the Madhya Pradesh Co-operative Societies Act, 1 960 (No. 17 of 196 1) or to any other person for the construction of houses.