(1) In the interest of efficient management and further expansion Borrowings.
and improvement of the Sanitarium,—
(a) the Administrator may, with the approval of the State Government, borrow money from any bank, financial institution or in the open market, subject to such terms and conditions as the State Government may determine, and the State Government may guarantee repayment of such loan and payment of interest thereon, and
(b) the State Government may, on the application of the Administrator, make loan or advance money to the Sanitarium on such terms and conditions as the State 107 The Lowis Jubilee Sanitarium (Taking over of Management) Act, 1976.
[West Ben. Act (Chapter 111—Management of the Sanitarium after the take-over.—Section 9.—Chapter 1V.—Accounts, budget and audit—Section 10.)
Government may determine, and such loan or money shall be repaid by the Sanitarium within such period, and with such interest, if any, as the State Government may determine.
(2) Notwithstanding anything contained in any other law for the time being in force, every debt arising out of any loan made or money advanced to the Sanitarium under clause (b) of sub-section (1) or any loan made to the Sanitarium by a bank or any other financial institution under clause (a) of sub-section (1),—
(a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such Sanitarium was taken over under sub-section (1) of section 3,
(b) shall be a preferential debt within the meaning of section 530 of the Companies Act, 1956, and such debts shall rank equally among themselves and be paid in full out of the assets of the Sanitarium unless such assets are insufficient to meet them, in which case they shall, in absence of any guarantee by the State Government, abate in equal proportions.
1 of 1956.
Management of the Sanitarium to revert.
9. On the expiry of the period referred to in sub-section (1) of section 3 or on any date earlier to the date of expiration of such period, as the State Government may direct, the management of the Sanitarium shall revert to the persons who are in charge of the management thereof immediately before the appointed day.
Accounts, budget and audit.
CHAPTER IV Accounts, budget and audit