State Financial Corporations Act, 1951
30. Power to call for repayment before agreed period
Notwithstanding anything in any agreement to the contrary, the
Financial Corporation may, by notice in writing, require any industrial concern
to which it has granted any loan or advance to discharge forthwith in full its
liabilities to the Financial Corporation,-
(a) if it appears to the Board that false or misleading
information in any material particular was given by the industrial concern in
its application for the loan or advance; or
(b) if the industrial concern has failed to comply with the
terms of its contract with the Financial Corporation in the matter of the loan
or advance; or
(c) if there is a reasonable apprehension that the industrial
concern is unable to pay its debts or that proceedings for liquidation may be
commenced in respect thereof; or
(d) if the property pledged, mortgaged, hypothecated or assigned
to the Financial Corporation as security for the loan or advance is not insured
and kept insured by the industrial concern to the satisfaction of the Financial
Corporation or depreciates in value to such an extent that, in the opinion of
the Board, further security to the satisfaction of the Board should be given
and such security is not given; or
(e) if, without the permission of the Board, any machinery,
plant or other equipment, whether forming part of the security or otherwise, is
removed from the premises of the industrial concern without being replaced; or
(f) if for any reason it is necessary to protect the interests
of the Financial Corporation.