Rule 83. Raising and re-payment of loans under sub-section (3) of section 120

(1) In pursuance of a resolution passed at a meeting of the Board, and with the prior approval of the State Government, the Board may, raise loans for the purposes of the Code.

(2) In particular and without prejudice to the generality of the foregoing power, the Board may raise loans for the acquisition of land and/or the raising of buildings thereon; or to repay a loan raised under this sub-rule; or for any other purpose approved by the State Government.

(3) All loans under this sub-rule shall be obtained-(a) from the Central Government on such rates of interest and such terms as to the time and method of repayment as the Central Government may specify; or

(b) from the State Government on such rates of interest and such terms as to the time and method of repayment as the State Government may specify; or

(c) with the approval of the State Government from a Nationalized Bank.

(4) Where a loan is obtained from such bank specified in clause (iii) of sub-rule (3) the Board may, with the approval of the State Government, grant mortgages of all or any of the property vested in it for securing the repayment of the sums so advanced, with interest.

(5) All payments due from the Board for interest on and repayment of loans shall be made in such manner and at such times as may have been agreed upon:

Provided that the Board may apply any sums, which can be so applied, in repayment of any amount due in respect of the principal of any loan although the repayment of the same may not be due.

(6) No expenditure incurred out of any loan shall be charged to capital, except with the previous sanction or under the directions of the State Government.

(7) The Board shall submit to the State Government an annual statement by the thirtieth day of April each year, an annual statement showing the loans raised and repayments made during the preceding year.