Amendment status not verified — confirm the current text below against the official source.
(1) A Co-operative society may receive loans by issue of debentures of one or more denominations repayable within twentyfive years and such debentures shall not be issued or reissued save with the express authority of the State Government. (2) The issue or reissue of debentures shall be subject to the following conditioris:— (a) that such debentures are secured by mortgages or any other security like Hypothecation of assets, Government securities and others as may be prescribed, held by the Co-operative society and assigned to the trustee or secured by Gehan under section 55, and (b) that the total amount payable in respect of the debenture does not exceed three-fourths of the total value of the mortgage or any other security like Hypothecation of assets, Government securities and others as may be prescribed, held by the Co-operative society and assigned to the trustee. (3) The State Government shall guarantee the principal and interest on the debentures, subject to such condition as it may be laid down. The State Government shall appoint the Registrar or any other person as trustee for securing the fulfilment of the obligations of the Co-operative society to holders of the debentures. The trustee so appointed shall exercise the powers and perform the functions of a trustee laid down in the Indian Trusts Act, 1882. (4) The State Government may, by order, declare that the debentures issued under sub-section (1) shall be deemed to be securities within the meaning of section 20 of the Indian Trusts Act, 1882. The form of the debentures and any subsequent modification therein shall be subject to the previous approval of the State Government.