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

Finance193438 sections4 chapters

Chapter II DEBENTURES

Statutory text

(1) The principal of, and interest on, the debentures issued under section 4 to such maximum amount as may be fixed by the State 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 State Government.
(3) The State Government may, after consulting the Board and the Trustee,
- (a) by notification in the Official Gazette, and
- (b) by notice for not less than fourteen days in such of the principal newspapers in the State of Tamil Nadu and of other States as the State 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 Official 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.

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