Section 81 in Karnataka Co-Operative Societies Act, 1959
81. Guarantee by State Government of principal of, and interest on, debentures.
(1)The principal of, and interest on, the debentures issued under section 79 shall, in respect of such maximum amount as may be fixed by the State Government and subject to such conditions as it may think fit to impose, carry the guarantee of the State Government.(2)The State Government may, subject to any law of the Legislature of the State, increase the maximum amount of any guarantee given under sub-section (1).(3)The State Government may, after consulting the Board and the Trustee,-(a)by notification in the official Gazette; and(b)by notice of not less than fourteen days in such of the principal newspapers in the State and of other States in India as the State Government may select in this behalf;discontinue any guarantee given by it or restrict the maximum amount thereof or modify the conditions, subject to which it is given, with effect from a specified date, not being earlier than six months from the date of publication of the notification in the official Gazette:Provided that the withdrawal, restriction or modification of any guarantee under this sub-section, shall not in any way affect the guarantee carried by any debentures issued prior to the date on which such withdrawal, restriction or modification takes effect.(4)Every notification and notice referred to in sub-section (3) shall, where the maximum amount of the guarantee is to be restricted, or the conditions subject to which the guarantee is given are to be modified, set forth precisely the scope and effect of the restriction or modification, as the case may be.
