Section 493

(1) The maximum amount of guarantee given by the State Government under Sub-section (1) of Section 140 may, if the State Government is satisfied that such an increase is justified and is necessary in the interest of Uttaranchal Co-operative Bank be increased after- (a) the Board has made a request to the State Government for such an increase duly supported by sufficient reasons, and (b) a special recommendation to this effect is made to the State Government by the Trustee. The maximum amount of the guarantee so increased by the State Government shall be notified in the Gazette from time to time. (2) Subject to the provisions of Sub-section (3) of Section 140 and without prejudice to the guarantee already carried by earlier debentures in term of proviso to that sub-section the State Government may withdraw or restrict or modify the amount of the guarantee of principal and interest on debentures, where in the opinion of the State Government, the Uttaranchal State Co-operative Bank has failed- (a) to observe the conditions of he Trust Deed; (b) to observe the provisions of the Act and the Rules; (c) to exercise due care and caution in the proper verification of the title of mortgagors; (d) to maintain adequate security on the debentures issued; and (e) to observe the instruction of the Trustee to fulfill the obligation of the Bank to the holders of the debentures.