(1) The Board may, subject to such conditions as it may prescribe, on the application of a person claiming to be entitled to a Board security, or securities issued by it, on being satisfied of the genuiness of the claim and on delivery of the security or securities received in such manner and on payment of such fee, if any, as it may prescribe, convert, consolidate or subdivide the security or securities, and issue to the applicant a new security or securities accordingly.
(2) The conversion, consolidation or sub-division referred to in sub-section (1) may be into security or securities of the same or different classes or of the same or different loans.
Discharge in certain cases.
64.Notwithstanding anything contained in the Limitation Act, 1963, the Board shall—
(a) on payment of the amount due on a board security on or after the date on which payment becomes due, or
(b) when a duplicate security has been issued under section 62, or 36 of 1963.
50
(c) when a new security or securities has or have been issued upon conversion, consolidation or sub-division under section 63, be discharged from the liabilities---
(i) in respect of the security or securities in the case of payment, after the lapse of six years from the date on which payment was due;
(ii) in the case of a duplicate security after the lapse of six years from the date of the publication under sub-section (3) of section 62 of the list in which the security is first mentioned or from the date of the last payment of interest on the original security, whichever is later; and
(iii) in the case of new security issued upon conversion, consolidation or sub-division after the lapse of six year from the date of the issue thereof.
Security for loans taken by Board.
65. All loans raised by the Board under this Act shall be a first charge on the property vested or which may, hereafter during the currency of loans, become vested in the Board other than,—
(a) any sum set apart by the Board as sinking fund for the purpose of paying off any loan;
or
(b) any sum set apart by the Board for the payment of pension to its employees; or
(c) the provident or pension fund established by the Board; or
(d) the rates leviable by the Board under this Act.
51 Remedies of State Government in respect of loans made to the Board.
66. The State Government shall have the same remedies as holders of board securities in respect of loan made by it to the Board and State Government shall not be deemed to possess greater rights in respect of such loans than that of the holders of such board securities:
Provided that, when the terms of any such loan made before the appointed day expressly provide that the loan shall have priority over all other loans in the matter of repayment by the Board, such loan shall have priority.
Power of Board to repay loans before due date.
67. Without prejudicing the security of the other holders of the board securities, the Board may, with prior sanction of the State Government, apply any sums received by it under the provisions of this Act for premature payment to the State Government:
Provided that, the amount of interest, in such cases, shall be re-computed to correspond to the actual amount of outstanding principal.
Establishment of sinking fund.
68. In respect of a loan raised by the Board under this Act, which is not repayable before the expiration of one year from the date of the loan, if the State Government, by an order in writing so directs, the Board shall set apart, as a sinking fund, out of its income half yearly, a sum sufficient to liquidate the loan within a period which shall not in any case, unless the previous consent of the State Government has been obtained, exceed twenty-five years; but the maximum period shall not in any case exceed forty years:
Provided that, a sinking fund need not, in the absence of any stipulation to that effect, be established in the case of loans taken by the Board from the Central Government or any State Government.
(2) Where any sinking fund has, before the appointed date, been established by any authority in respect of a loan raised by it, for which the Board is liable under this Act, the 52 sinking fund so established by that authority shall be deemed to have been established by the Board under this section.
Investment and application of sinking fund.