Section 6 in National Housing Bank (Issue And Management Of Bonds) Regulations, 1989
6. Provision for holding of bonds issued in the form of promissory notes by trust or trustee(s).
(1)Without prejudice to the provisions of sub-regulation (i) of regulation 4, the National Housing Bank may, at the request of the applicant and without liability to the National Housing Bank issue a Bond in the form of promissory note in the name of a specified trust or trustee(s) of that trust, or, as the case may be, in the present name of the applicant, describing him as a trustee, whether as a trustee of the trust specified in his application or as a trustee without such specifications.(2)Where a Bond in the form of promissory note stands in the personal name of the holders, the National Housing Bank may, on an application made by him in the Form required by the National Housing Bank and on surrender of such Bond, issue a renewed Bond in the form of a promissory note in the manner laid down in sub-regulation (1) hereof :Provided that,-(i)the necessary evidence required by the National Housing Bank in terms of sub-regulation (6) hereof has been furnished; and(ii)the Bond has been endorsed in favour of the National Housing Bank.(3)The Bond under sub-regulation (1) hereof may be held by a trustee of any trust either alone or jointly with another person or persons as trustees of that trust.(4)Where a Bond in the form of promissory note purports to have been endorsed by the Bond holder as a trustee, or where any power of attorney or other document purporting to be executed by the Bond holder is produced to the National Housing Bank, the National Housing Bank shall not be concerned to enquire whether the Bond holder is entitled under the terms of any trust or document or rules to make such endorsement to execute such power of attorney or other document, and may act on endorsement, power of attorney or document, in the same manner as though such endorser is a Bond holder and whether the Bond holder is or is not described in the endorsement, power of attorney or document as a trustee, and whether he does or does not purport to make endorsement or execute the power of attorney or document in his capacity as a trustee.(5)Nothing in these regulations shall, as between any trustee and the beneficiaries, under a trust or any document or rules, be deemed to authorise the trustee to act otherwise than in accordance with the rules of law applying to trust or the terms of the instrument constituting the trust.(6)Before acting on any application made, in pursuance of this regulation, by a person as being the trustees of any trust, the National Housing Bank may require the production of evidence that such person is the trustee for the time being of that trust.
