Power of Corporation to borrow and guarantee of loans

Infrastructure197263 sections2 chapters

Chapter III FUNCTIONS AND POWERS OF THE CORPORATION

Statutory text

(1) The Corporation may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as may be prescribed in this behalf, borrow any sum required for the purposes of this Act.
(2) Such rules made by the State Government for the purposes of this section may empower the Corporation to borrow by the issue of bonds or stock or otherwise.
(3) The maximum amount which the Corporation may at any time have on loan under sub-section
(1) shall be fifty crores of rupees, unless the State Government, with the approval of the State Legislative Assembly, fixes a higher maximum amount.
(4) The State Government may guarantee in such manner as it thinks fit the payment of the principal and interest of any loan proposed to be raised by the Corporation or of either the principal or the interest: Provided that the State Government shall, so long as any such guarantees are in force, lay before the State Legislature in every year during the budget session of the Legislature, a statement of the guarantees, if any, given during the current financial year and an up-to-date account of the total sum, if any, which have been paid out of or into the State Revenues by reason of any such guarantees or paid into the State Revenues towards repayment of any money so paid out.

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