Section 11 in The Industrial Development Bank Of India Act, 1964
11. Borrowings and acceptance of deposits by Development Bank
.-(1) The Development Bank may, for the purpose of carrying out its functions under this Act,-(a)issue and sell bonds and debentures with or without the guarantee of the Central Government; (b) borrow money from the Reserve Bank-(i)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 the security of 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 in India;(ii)against bills of exchange or promissory notes arising out of bona fide commercial or trade transactions, bearing two or more good signatures and maturing within five years from the date of the borrowing;(iii)out of the National Industrial Credit (Long Term Operations) fund established under section 46-C of the Reserve Bank of India Act, 1934 (2 of 1934), for any of the purposes specified in that section;(c)borrow money from such other authority, organisation or institution in India as may be generally or specially approved by [the Board];[(d) accept deposits on such terms as may be approved by the Board.] [Substituted by Act 5 of 1995, Section 13, for " the Central Government" (w.r.e.f. 12.10.1994). ](2)The Central Government may, on a request being made to it by the Development Bank, guarantee the bonds and debentures issued by that bank as to the repayment of principal and the payment of interest at such rate as may be fixed by that Government.[11-A. Power to transfer rights .-The rights and interests of the Development Bank (including any other rights incidental thereto) in relation to any loan or advance granted, or any amount recoverable, by it may be transferred by the Development Bank, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument by endorsement, or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred, and the Development Bank may, notwithstanding such transfer, act as the trustee for the transferee.][11-B. Power to acquire rights .-The Development Bank shall have the right to acquire, by transfer or assignment, the rights and interests of any public financial institution as defined in section 4-A of the Companies Act, 1956 (1 of 1956) (including any other rights incidental thereto) in relation to any loan or advances granted, or any amount recoverable by such institution, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument or in any other manner. ]
