Establishment of sinking fund.

In respect of a loan raised by the Board under this Act, which is not repayable before the expiration of one year from the date of the loan, if the State Government, by an order in writing so directs, the Board shall set apart, as a sinking fund, out of its income half yearly, a sum sufficient to liquidate the loan within a period which shall not in any case, unless the previous consent of the State Government has been obtained, exceed twenty-five years; but the maximum period shall not in any case exceed forty years: Provided that, a sinking fund need not, in the absence of any stipulation to that effect, be established in the case of loans taken by the Board from the Central Government or any State Government. (2) Where any sinking fund has, before the appointed date, been established by any authority in respect of a loan raised by it, for which the Board is liable under this Act, the