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Industrial Finance Corporation Act, 1948


21. Borrowing Powers.

1.     The Corporation may issue and sell bonds and debentures carrying interest for the purpose of raising its working capital. 11* * * * * ---------------------------------------------------------------------- 1 Ins. by Act 43 of 1957, s. 3. 2. Ins. by Act 50 of 1986, s. 10 (w.e.f. 2-2-1987). 3. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "the Central Government or the Reserve Bank" (w.e.f. 1-8-1964). 4. Omitted by Act 2 of 1982, s. 7 (w.e.f. 12-3-1982). 5. Ins. by Act 78 of 1952, s. 10. 6. Omitted by Act 2 of 1982 s. 8 (w.e.f. 12.3.1982). 7. Added by Act 50 of 1986 s. 11 (w.e.f. 2.2.1987). 8. Subs. by Act 52 of 1963, s. 44 and Sch. II, for s. 20 (w.e.f. 1- 2-1964). 9. Ins. by Act 74 of 1972, s. 8. 10. Subs. by Act 50 of 1986 s. 12 (w.e.f. 2.2.1987). 11. Omitted by s. 9, ibid. (w.e.f. 12.3.1982). 48

2.     Bonds and debentures of the Corporation shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central Government on the recommendation of the Board at the time the bonds and debentures are issued: 1*[Provided that no such guarantee by the Central Government shall be required in respect of such bonds and debentures of the Corporation as are issued to the Development Bank.]

3.     The Corporation may, for the purpose of carrying out its functions under this Act, borrow money from the Reserve Bank,- (a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date on which the money is so borrowed, against securities of the Central Government or of any State Government; or (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date on which the money is so borrowed, against securities of the Central Government of any maturity or against bonds and debentures issued by the Corporation under sub-section (1) and guaranteed by the Central Government and maturing within a period not exceeding eighteen months from the date on which the money is so borrowed: 3* * * * *

4.     The Corporation may also, for the purpose of carrying out its functions under this Act, borrow money from the Central Government 4*[or the Development Bank], 5*[the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (1 of 1956), the General Insurance Corporation of India formed and registered under the Companies Act, 1956, the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963), or, with the general or special approval of the Central Government, from any other authority, institution, organisation or trust within or outside India] on such terms and conditions as may be agreed upon. ----------------------------------------------------------------------

1.     Ins. by Act 74 of 1972, s. 9.

2.     Subs. by Act 28 of 1955, s. 15, for sub-section (3), ins. by Act 78 of 1952, s. 11.

3.     Omitted by Act 50 of 1986, s. 13 (w.e.f. 2.2.1987)

4.     Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964)

5.     Ins. by Act 50 of 1986, s. 13 (w.e.f. 2-2-1987).



Industrial Finance Corporation Act, 1948 Back




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