Section 21(2) in The National Bank For Agriculture And Rural Development Act, 1981
(2)The National Bank may make loans and advances under sub-section (1) against the security of-(i)stocks, funds and securities other than immovable property, in which a trustee is authorised to invest trust money by any law for the time being in force;(ii)promissory notes supported by documents of title to goods, such documents having been transferred, assigned or pledged to the borrowing institution as security for a loan or advance made for any of the purposes specified in sub-section (1):Provided that the National Bank may, whenever it considers it necessary so to do, accept, in lieu of the actual assignment of any such security in favour of the National Bank, a declaration in writing from the borrowing institution,-(a)stating that it holds such documents of title to goods as may be set out in the declaration; and(b)containing such other particulars as may be required by the National Bank.
