Such funds shall be invested in such manner as may be determined by the Board with the approval of the Government.

Power of the Board to borrow and lend

1. (1) Subject to the provisions of this Act and the regulations made thereunder and subject to such conditions as may be specified by the Government by a general or a special order issued in this behalf by them and with their previous approval, the Board may, from time to time, borrow money required for the purposes of this Act by any one or more of the manners specified below:—
   • (a) raising loans from any bank or other financing institutions or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (Central Act 31 of 1956); or
   • (b) raising loans from any Corporation, owned or controlled by the Central or the State Government; or
   • (c) raising loans from the public by issue of bonds, or debentures or stocks or otherwise in the form and manner approved by the Government: Provided that the loans or amounts borrowed under this sub-section shall be utilised only for the specific purpose or purposes for which such loans or borrowings were raised or made.
2. (2) Subject to the provisions of this Act and to such conditions and limitations as may be specified, the Board may out of its funds grant loans and advances, on such terms and conditions as it may determine to any local authority for any development scheme.
3. (3) The Government may guarantee in such manner as they think fit, the repayment of the principal and interest of any loan proposed to be raised by the Board under sub-section (1): Provided that the Government shall, so long as any such guarantees are in force, lay before both Houses of the Legislature in every year during the Budget session, a statement of the guarantees, if any, given during the current year and an up-to-date account of the total sums, if any, which have been paid out of the Consolidated Fund of the State by reason of any such guarantees or paid into the said Fund towards re-payment of any money so paid out.