(1) With the previous sanction of the State Government and the Trustee and subject to such terms and conditions as the State Government may impose, the State Land Development Bank in the discharge of its function as a Land Development Bank may issue debentures of such denominations, for such period not exceeding thirty years, and at such rates of interest, as it may deem expedient, on the security of mortgages, or mortgages to be acquired or partly on mortgages held and partly to be acquired and properties and other assets of the Land Development Banks.
(2) Every debenture may contain a term fixing a period not exceeding thirty years from the date of issue during which it shall be redeemable.
(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;
(ii) the value of the properties and other assets transferred or deemed to have been transferred under section 77 by the Land Development Banks to the State Land Development Banks and subsisting at such time; and
(iii) the amounts paid under the mortgages aforesaid and 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.