Issue of Debentures

(1) With the previous sanction of the State Government and the Trustee and subject to such terms and conditions as the State Government may impose, Uttarakhand State co-operative Bank may from time to time, issue debentures of one or more denominations, for such period or periods as it may deem expedient, against the guarantee by the State Government for repayment in full of the principal and payment of interest thereon or on the security of mortgages, charge or hypothecations partly held and partly to be acquired and the properties and other assets of the bank. (2) Such debentures may contain a term fixing a period not exceeding twenty years from the date of issue during which period they shall be irredeemable, reserving to the Bank the right to call in at any time any of the debentures in advance of the date fixed for redemption, after giving to the debenture-holders concerned not less that three months notice in writing. (3) The total amount due on debentures issued by the bank under sub-section (1) outstanding at any time shall not exceed the aggregate of- (a) the amounts due on the mortgages or charges on hypothecation and other assets of Uttarakhand State co-operative Bank; (b) the accumulations in the debenture Redemption Fund; (c) the cash in hand and the balances with the banks and the book value or market value of securities under general funds, whichever is less; and (d) such percentage of the amounts mentioned in clauses (a), (b) and (c) as may be prescribed.