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State Financial Corporations Act, 1951

26. Limit of accommodation

(1) On and from the commencement of the 16[State Financial Corporations (Amendment) Act, 1985 (43 of 1985), the Financial Corporation shall not enter into any arrangements under clause (a), (ca) or (g) of] sub-section (1) of section 25 with any industrial concern so that the total amount outstanding against that concern in respect of all such arrangements together with the amount of the face value of the shares and stocks of that concern whether subscribed or agreed to be subscribed and the outstanding liabilities on account of underwriting agreements and the deferred payments guarantees] is more than-

(i) 2[Sixty lakhs of rupees in the case of a corporation established by or under any other law or] a company as defined in section 3 of the Companies Act, 1956 (1 of 1956) or a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or any other law relating to Co-operative Societies for the time being in force; and

(ii) 17[thirty lakhs] of rupees in any other case:]

3[PROVIDED that the Financial Corporation may, with the prior approval of the Development Bank, exceed the limit under clause (i) or clause (ii) up to four times.]

(2) [Omitted by Act No. 43 of 1985.]

State Financial Corporation Act, 1951 Back

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