Issue of debentures by the Board

(1) With the previous sanction of the Trustee, the Board may from time to time issue debentures of one or more denominations for such periods as it may deem expedient on the security of the mortgages and assets held by or transferred or deemed under the provisions of Section 87 to have been transferred by the Co-operative Agricultural and Rural Development Bank to the State Co-operative Agricultural and Rural Development Bank and other properties of such Bank. (2) Such debentures may contain a term fixing a period not exceeding ten years from the date of issue during which they shall be irredeemable or reserving to the Board the right to call in at any time of the debentures in advance of the date fixed for redemption after giving to the debenture-holder concerned not less than three months notice in writing. (3) The total amount due on the debentures issued by the Board and outstanding at any time shall not exceed the aggregate of– (a) the total amount due on the mortgages held by the State Co-operative Agricultural and Rural Development Bank or transferred or deemed under the provisions of Section 87 to have been transferred to it by the Co-operative Agricultural and Rural Development Bank and the value of the assets in respect of the land mortgage business held by the State Co-operative Agricultural and Rural Development Bank and subsisting at such time; and (b) the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time. (4) Notwithstanding anything contained in this Chapter– (a) the Board may, with the previous sanction of the Trustee, issue