(l) The Register, or any other persan appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it.
(2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and Shall have perpetual Succession and a common seal, and in his corporate name may sue and be sued. ‘
(3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Land Development Bank and the 'lTruetee, as modified from time to time by mutual agreement between the State Land Development Bank and the Trustee.
114' (1) With the previous sanction of the State Government and the Trusteeand subject to such terms and conditions as the State Government may impose the State Land Development Bank may issue debentures of such denominations, for such period, and at such rates of interest as it may deem expedient on the security of mortgage, or mortgages to be acquired or partly on mortgages, held and partly to be acquired, and properties and other assets of the Land Development Bank.
(2) Every debentures may contain a, term fixing a period not exceeding twenty years from the date of issue during which it shall be redeemable, or reserving to the Board the right to redeem at any time in advance of the date fixed for redemption after giving to the holder of the debenture not less than three months’ notice in writing.
(3) The total amount due on debentures issued by the State Land Development Bank and outstanding at any time, shall not exceed“
(a) where debentures are issued against mortgages held, the aggregate of-
(i) the amounts due on the mortgages ;
5‘1 State and other Land Development Banks.
Appointment and functions of Trustees.
Issue of debentures C t .
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Guarantee by State Government.
Veating of ' property in Trustee and Debenture holders’ charge on assets.
Powers of Land Developmeut Banks to advance loans and to hold loans Mode of dealing with applications for loans
(ii) the value of the properties and other assets transferred or deemed to have been transferred under section 121 j by the Primary Land Development Banks to the State Land Development Bank and subsisting at such. time ; and
(iii) the amounts paid under the mortgages aforesaid end the unsecured amounts remaining in the hands of the State Land Development Bank or the Trustee at the time ;
(b) Where debentures are issued otherwiSe than on mortgages held, the total amount as calculated under clause (a) increased by such portion of the amount obtained on the debentures as is not covered by a, mortgage.
115. The principal of, and interest on the debentures issued under the preceding section or any specified portion thereof, may carry the gurantee of the State Government, subject to such maximum amount as may be fixed by the State Government, and to such conditions as the State Goyernment may think fit to impose.
116. Upon the issue of debentures under the provisions of section 114, the properties and other assets referred to in sub—section (3) of that section held by the State Land Development Bank, shall vest in the Trustee, and the holders of debentures shall have a. floating charge on all such mortgages and assets, and on the amount paid under such mortgages, and remaining in the hands of the State Land Development Bank or of the Trustee.
117. Subject to the provisions of this Act, and the Rules made thereunder, it shall be competent for the Land Development Banks to advance loans for the purposes referred to in section 111, and to hold lends the possession of which is transferred to them under the provisions of this Chapter-