Section 8 in The M.P. Shakari Krishi Aur Gramin Vikas Bank Adhiniyam 1999
8. Government Guarantee for Debentures, Bonds and Loans.
(1)The principal of, and the interest on, debentures issued under Section 5 or bonds issued or loans raised under Section 6, to such maximum amount as may be fixed by the State Government from time to time and subject to such conditions as it may deem fit to impose, shall carry the guarantee of the State Government.(2)The State Government may, after consulting the State Development Bank and the Trustee, by notification in the Official Gazette and by notice published for not less than fourteen days in such of the principal newspapers, in and outside the State as it may select, discontinue the guarantee given under sub-section (1), or restrict the maximum amount thereof, or modify the conditions subject to which it is given with effect from a date specified in such notification or notice not being earlier than six calendar months from the date of the first publication of the notification in the Gazette.(3)In case where the maximum amount of the guarantee is to be restricted or any of the conditions subject to which it is given, is to be modified, the notice shall set forth with sufficient clarity, the scope and effect of the restriction or modification, as the case may be.(4)Any discontinuance, restriction or modification notified under sub-section (2) shall not effect in any way the guarantee carried by any debentures issued prior to the date on which such discontinuance, restriction or modification lakes effect.
