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State Financial Corporations Act, 1951

8. Deposits with the Financial Corporation

(1) The Financial Corporation may accept from the State Government or, with the prior approval of the State Government, the Development Bank and the Reserve Bank, a local authority or any other person deposits repayable after the expiry of a period which shall not be less than twelve months from the date of the making of the deposit and on such other terms as it thinks fit:

2[PROVIDED that the total amount of such deposits shall not exceed twice the paid up share capital of the Financial Corporation:

PROVIDED FURTHER that the Central Government may permit the Financial Corporation to accept deposits up to a higher limit not exceeding ten times the paid up share capital of the Financial Corporation.]

2[(2) Any deposit accepted under sub-section (1), other than a deposit from the State Government shall, if so required by the Financial Corporation, be guaranteed by the State Government as to the repayment of the principal and the payment of interest.]

State Financial Corporation Act, 1951 Back

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