(1) With the previous sanction of the Trustee of the Board may, from time to time, issue debentures one or more denominations for such periods as it may deem expedient, on the security of the mortgages and other assets transferred or deemed to have been transferred under Section 21 by the Mortgage Banks to the Central Mortgage Bank and other properties of Central Mortgage Bank.
(2) Such debentures may contain a term fixing a period not exceeding ten years from the date of issue during which they shall be irredeemable or reserving to the Board the right to call in at any time any of the debentures in advance of the date fixed for redemption after giving to the debenture holder concerned not less than three months' notice in writing.
(3) The total amount due on the debentures issued by the Board and outstanding at any time shall not exceed the aggregate of (a) the amounts due on the mortgage and the value of the other assets transferred or deemed to have been transferred under Section 21 by the Mortgage Banks to the Central Mortgage Bank and subsisting at such time; and (b) the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time.
Charge of Debenture Holders on certain properties.
6. The holders of the debentures have a floating charge on-
(a) all such mortgages and assets as are referred to in clause (a) of sub-section (3) of Section 5;
(b) the amount paid under such mortgages and remaining in the hands of the Board or of the Trustee; and 4
(c) the other properties of the Central Mortgage Bank.
Gaurantee by state Government of principal of, and interest on, debentures.