Section 18: Borrowings by the corporation

(1) The corporation may, for the purpose of carrying out its functions under this Act- (a) issue and sell bonds and debentures and other securities carrying interest; (b) borrow moneys and accept deposits from the Central Government, the State Government, any bank or financing institution and, with the approval of the State Government, from a corporate body or from any other person. (2) The State Government may guarantee the bonds and debentures and other securities issued under clause (a), and the loans and deposits raised by the corporation under clause (b), of sub- section (1) as to the repayment of principal and payment of interest thereon and incidental charges. (3) Without the approval of the State Government, the total borrowings of the corporation under sub-section (1) shall not, at any time, in the aggregate exceed twice the amount of the paid-up share capital and reserves of the corporation.