Section 38 in Karnataka Improvement Boards Act, 1976
38. Power of Board to borrow.
(1)The Board may, from time to time with the previous sanction of the Government and subject to such conditions as may be prescribed in this behalf borrow any sum required for the purpose of this Act.(2)The rules made by the Government for the purpose of this section may empower the Board to borrow by the issue of debentures and to make arrangement with the bankers.(3)Debentures issued by the Board shall be in such form as the Board may, with the sanction of the Government, from time to time determine.(4)Every debenture shall be signed by the Chairman and one other member of the Board.(5)Loans borrowed and debentures issued under this section may be guaranteed by the Government as to the repayment of principal and payment of interest at such rate as may be fixed by the Government.
