Section 3 in National Housing Bank (Issue And Management Of Bonds) Regulations, 1989
3. Form of the Bond and the mode of transfer thereof etc.
(1)A Bond may be issued by the National Housing Bank in the form of-(a)a promissory note payable to or to the order of a certain person,or(b)a stock certificate for stock registered in the books of the National Housing Bank.(2)(i)A Bond issued in the form of promissory note shall be transferable by endorsement and delivery like a promissory note payable to order.(ii)No writing on a Bond issued in the form of a promissory note shall be valid for the purpose of negotiation if such writing purports to transfer only a part of the amount denominated by the Board.(3)A Bond issued in the form of stock certificate and registered in the books of the National Housing Bank shall be transferable either wholly or in part by execution of an instrument of transfer in Form A. The transfer or in such a case shall be deemed to be holder of the Bonds issued in the form of stock certificate to which the transfer relates until the name of the transferee is registered by the National Housing Bank.(4)(a)Notwithstanding anything to the contract in sub-regulation (1) hereof contained the National Housing Bank may, at the request of the person entitled to the Bonds, issue Bonds in the form of entry in an account to be maintained by the National Housing Bank in the name of the person entitled to the Bonds.(b)The Bonds may be so issued in the form of entry in the books of accounts of the National Housing Bank either initially at the time of subscription to the Bonds or subsequently by conversion of the Bond issued either in the form of a promissory note to stock or certificate.(c)If a Bond has already been issued in the form of promissory note, the Bond holder desires of holding it in the form of an entry in an account with the National Housing Bank shall make requisition in Form II and surrender the Bond duly endorsed in favour of the National Housing Bank for the Bond being held in the form of an entry in an account to the books of the National Housing Bank.(d)If the Bond has been issued in the form of stock certificate, the holder shall transfer the Bond in favour of the National Housing Bank with a request that the Bond may be held in the form of an entry in an account to be maintained by the National Housing Bank in the name of the holder.(e)A person holding Bonds in the form of an entry in an account maintained by the National Housing Bank may have the Bonds transferred or converted in the form of a promissory note or a stock certificate by making an application in Form III.(f)No fee is chargeable for issuing Bonds in the form of an entry in the account of the books of the National Housing Bank or converting Bonds already issued either in the form of a promissory note or stock certificate in the form of an entry in the books of the National Housing Bank or vice versa.(g)Bonds issued or held in the form of an entry in the books of the National Housing Bank shall be transferable by execution of an instrument of transfer in Form IV. The transferor in such cases shall be deemed to be the holder of the Bonds to which the transfer relates till such time the name of the transferee is entered in the books of the National Housing Bank.(5)(i)A Bond shall be issued over the signature of the Chairman of the National Housing Bank which may be printed, engraved or lithographed or impressed by such other mechanical process as the National Housing Bank may direct.(ii)A signature so printed, engraved, lithographed or otherwise impressed shall be as valid as if it had been inscribed in the proper handwriting of the signatory himself.(6)No endorsement of a Bond in the form of a promissory note or no instrument of transfer in the case of a Bond in the form of stock certificate shall be valid unless made by the signature of the holder or his duly, constituted attorney or representative inscribed in the case of a Bond in the form of a promissory note on the back of the Bond itself and in the case of a Stock Certificate on the instrument of transfer.
