(1) For fulfilling the purposes of this Act, the Board may raise loans with the previous sanction of the State Government on such terms and conditions as it may prescribe.
(2) Loans under sub-section (1) may be raised by the Board in the open market on the board securities issued by it or may be obtained from the State Government or an institutional lender approved by the State Government.
Board Securities. 56. (1) The Board may, with the previous sanction of the State Government, specify the form in which the board securities shall be issued and the mode in which, and the conditions subject to which, they may be transferred.
(2) The holder of any board security in any form may obtain in exchange thereof, upon such terms as the Board may, from time to time, determine a board security in other form prescribed by regulations.
(3) The right to sue in respect of money secured by the board securities shall be exercisable by the holders thereof at the material time.
Right of joint or several payees of securities.
57. Notwithstanding anything contained in the Indian Contract Act, 1872—
(a) when any board security is payable to two or more persons jointly and either or anyof them dies, such security shall be payable to the survivor or survivors of those persons; and
(b) when any such security is payable to two or more persons severally and either or any of them dies, the security shall be payable to the survivor or survivors of those persons or to the representatives of the deceased.
9 of 1872.
Powers of one or two or more joint holders to grant receipt.
58. Where two or more persons are joint holders of any board security, any one of those persons may give an effectual receipt for any interest payable in respect of such security unless notice to the contrary has been given to the Board by any other holder(s).
48 Endorsements to be made on the face of the Security.
59. Endorsement by the Board of a security which is transferrable by endorsement shall be valid when the maker or holder of the board security signs the same in accordance with the provisions of Section 15 of the Negotiable Instruments Act, 1881.
26 of 1881.
Endorsement of security not liable for amount thereof.
60. A person shall, by reason of his having endorsed any board security, be liable to pay any money due either as principal or as interest thereunder, unless his liability is excluded or made conditional in accordance with the provisions of the Negotiable Instruments Act, 1881.
26 of 1881.
Impression of signatures on securities.