Section 21 in M.P. Nagar Tatha Gram Nivesh Niyam, 1975
21. Power to borrow money.
- The Town and Country Development Authority may borrow money under Section 63 subject to the following terms and conditions, namely :-(i)The Town and Country Development Authority may with the previous sanction of the State Government borrow money by issuing debentures for the purposes of the Act.(ii)The amount of money to be borrowed by issue of debentures, their issue price, of debentures and the terms of maturity shall be determined by the authority with the prior approval of the Government.(iii)The rate of interest which debentures would carry shall be such as may be fixed by the State Government.(iv)No debentures shall be issued, except with the guarantee by the State Government as to the repayment of principal and payment of interest.(v)A sinking fund shall be constituted for the redemption of debentures and in case of any failure on this account as immediate report with reason for such failure shall be made to the State Government. The authority shall be bound by such directions as may be issued by Government in this behalf.(vi)Debentures shall be negotiable by endorsement and delivery.(vii)The authority may with the sanction of the State Government reserve the debentures bonds for issuing to any particular person on institution or have the debentures under written.(viii)Brokerage and under writing commission at such rate as may he fixed by the authority from time to time shall be paid to Banks, brokers and others on their applications and also on applications received through, them bearing their seal.(ix)Applications for the issue of debentures shall be made to the authority in Form XVIII.(x)Subscriptions to the debentures may be made by cheques or demand drafts drawn in favour of the Town and Country Development Authority.(xi)If the subscriptions exceeds the total amount of the debentures issued partial allotment may be made and the balance of the sum paid at the time of applications shall be refunded as soon as possible. No interest shall be paid on the amount so refunded. The authority may, reserve the right to retain the subscriptions received up to ten percent in excess of the sum floated.(xii)The debentures shall be issued in denomination of Rupees 100, Rupees 500, Rupees 1,000, Rupees 5,000, Rupees 10,000, Rupees 25,000, Rupees 50,000, Rupees 1,00,000 and Rupees 5,00,000.(xiii)The interest on debentures shall be paid half yearly. The interest is subject to the payment of Income-tax.(xiv)The debentures shall be redeemable on dates noted therein and the holder shall have no claims upon the authority for the interest accruing after the expiry of the term.(xv)Debentures which by reasons of damage sustained have become unfit for circulation shall be replaced at the request of the holder on surrendering the damaged or defaced debentures, provided that the essential marks for genuineness and identity such as the number, the amount, the rate of interest, the date and signature of the Chairman and the member of the authority are still recognizable. Fresh debentures shall also be issued to replace lost or destroyed debentures when in the opinion of the authority the fact of destruction is proved beyond doubt. When such proof is not produced or when in case of damage the essential marks on the debentures are lost and no longer recognizable or the debenture has been lost or has been misled, a new debenture may be issued only after the debenture which is alleged to be missing or unrecognizable has been advertised by the claim and in the manner specified by the authority and is not claimed by any other person.(xvi)The reissue of the debenture shall be made for the same amount under the same number with the addition of the word "Renewed". A fee of rupee one shall be charged for every renewed debenture the issue.
