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Section 4: Issue of debentures by the Board

The Kerala Co-operative Land Mortgage Banks Act, 1960 (President's Act No.1 of 1960)State Act of Kerala · Act 1 of 1960

(1) (a) W•th the pre­ vious sanctiOn of the Tru:.tee, the Board may issue debentures of one or more denommat10ns for such per1od as 1t may deem ex­ pedient on the security oi the mortgages taken by the Central Mortgage Bank and 1ts other assets and mortgages transferred or deemed under the prov1s1ons of section 23 to have been trans­ ferred by the primary mortgage banks to tne Central Mortgage Bank.

(b) Such debentures may contam a term fixing a period not exceedmg twenty years from the date of issue durmg wh1ch they shall be irredeemable or re,erving to the Board the righ~ to call m, at any time, any of the debentures m advancP of the date fixed for redemption after g1v10g to the debenture-holder con­ cerned not less than three montns' notice in wr1ting.

(2) The total amount due on the debentures issued by the Board and outstandmg, at ar.y time, shall not exceed the aggre­ gate of thP. amounts due on the mortgages and other assets rPferred tom clause <a) of sub-secLIO!l (1) and the amounts pa1d thereunder and remainms m the hands of the Board or of the Trustee at such t1me.

5. Appointment of Trustee and his powers and functwns.­

(1) The Reg1sLrar, or where the Government appoint any other person m this behalf, such person, shall oe the Tru~t~e for the pur­ pose of securing the fulfilment of the obhgat10ns of the Central Mortgage Bank to the holders of de bent tr~s 1ssued by thP. Board.

The mortg<4ges executed m favour of the Central Mortgage Bank 5 and other mortgages and assets transferrE-d or deemed under the prOVIsions of &ection 23 to have been tran:.ferred to the Central Mortgage Bank shall vest in the Trustee from the date of exer:u­ tion or transfer. The holders of the debentures shall have a floating charge on all suc-h mortgagee; and assets, on the amounts paid under such mortgages and remammg in the hand3 of the B0ard or the Trustee and on the other properties of the Central Mortgage Bank. The lJowers and functions of the Trustee shall be governed by the instrument of trust executed between the Bank and the Trustee as modified from time to time by mutual agreement between the Board and the Trustee.

(2) The Trustee appointed under sub-section (1) shall be a corporation sole lly the name of the Trustee for the debentures and as such shall have perpetual succession and a common seal and in his corporate name shall sue and be sued.

Where this provision sits

ActThe Kerala Co-operative Land Mortgage Banks Act, 1960 (President's Act No.1 of 1960)
Section4
Marginal noteIssue of debentures by the Board
JurisdictionState of Kerala
StatusIn force as published by the source

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