Section 21 in The Industrial Finance Corporation Act, 1948
21. Borrowing powers .-(1) The Corporation may issue and sell bonds and debentures carrying interest for the purpose of raising its working capital:
[* * *](2)Bonds and debentures of the Corporation shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central Government on the recommendation of the Board at the time the bonds and debentures are issued:[Provided that no such guarantee by the Central Government shall be required in respect of such bonds and debentures of the Corporation as are issued to the Development Bank.] [ Inserted by Act 74 of 1972, Section 9.](3)[ The Corporation may, for the purpose of carrying out its functions under this Act, borrow money from the Reserve Bank,-(a)repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date on which the money is so borrowed, against securities of the Central Government or of any State Government; or(b)repayable on the expiry of fixed periods not exceeding eighteen months from the date on which the money is so borrowed, against securities of the Central Government of any maturity or against bonds and debentures issued by the Corporation under sub-section (1) and guaranteed by the Central Government and maturing within a period not exceeding eighteen months from the date on which the money is so borrowed: ][* * *] [ Proviso omitted by Act 50 of 1986, Section 13 (w.e.f. 2.2.1987).](4)The Corporation may also, for the purpose of carrying out its functions under this Act, borrow money from the Central Government [or the Development Bank] [ Inserted by Act 18 of 1964, Section 38 and Sch. II (w.e.f. 1.8.1964).][, the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), the General Insurance Corporation of India formed and registered under the Companies Act, 1956 (1 of 1956), the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963), or, with the general or special approval of the Central Government, from any other authority, institution, organisation or trust within or outside India] [ Inserted by Act 50 of 1986, Section 13 (w.e.f. 2.2.1987).] on such terms and conditions as may be agreed upon.[* * *] [ Proviso omitted by Act 2 of 1982, Section 9 (w.e.f. 12.3.1982).][21-A. Bonds and debentures to be approved securities .- Notwithstanding anything contained in any other law for the time being in force, the bonds and debentures issued or sold by the Corporation shall be, and shall be deemed always to have been, approved securities for the purpose of the Indian Trusts Act, 1882 (2 of 1882), the Insurance Act, 1938 (4 of 1938), and the Banking Regulation Act, 1949 (10 of 1949).
