Amendment status not verified — confirm the current text below against the official source.
(1) With the previous sanction of the Trustee, the Board may issue debentures of one or more denominations for such period as it may deem expedient on the security of Gehan or mortgage or hypothecation held or mortgages, charges or hypothecation partly held and partly to be acquired or other assets taken by the Agricultural and Rural Development Bank and its other assets and Gehan or mortgages or hypothecation transferred or deemed under the provisions of section 13 to have been transferred by the primary Banks to the [Agricultural and Rural Development Bank]. (2) Notwithstanding anything contained in sub-section (1), in respect of loans guaranteed by the Government and granted to any person or to any body of persons, whether incorporated or not, and whether or not established by or under any law for the time being in force, if such a body is approved by the Government, the Board may, with the previous permission of the Trustee, issue debentures, on the strength of such Government guarantee and without the security of Gehan or mortgages or hypothecation and other assets, of one more denominations, for such periods as it may deem expedient and subject to such conditions as the Government may think fit to impose. (3) The debentures issued under sub-section (2) may contain a term fixing a period not exceeding thirty years from the date of issue during which they shall be irredeemable or reserving to the Board the right to call in, at any time, any of the debentures in advance of the date fixed for redemption after giving the debenture holder concerned not less than three months' notice in writing. (4) The total amount due on the debenture issued by the Board and outstanding at anytime, shall not exceed the aggregate of the amounts due on the Gehan or mortgages or hypothecation and other assets and Government guarantee referred to in sub-section (2) and the amounts paid thereunder and remaining in the hands of the Board or the Trustee at such time. Substituted by Act 19 of 1990 for "Agricultural Development Bank".