Section 44E in The Bihar Co-operative Societies Act, 1935
44E. Issue of debenture by the Board.
(1)With the previous sanction of the Trustee, and subject to such terms and conditions as he may impose, the Board may from time to time, issue debentures of such denominations for such period as it may deem expedient on the security of the mortgages held or mortgages partly held and partly to be held and either transferred or deemed to have been transferred, under the provisions of section 44-J, to the Co-operative Land Development Bank and other properties of such Bank:Provided that notwithstanding anything contained in this sub-section regarding issue of debentures on security of mortgages, it shall be competent for the Board with the previous sanction of the trustee, and subject to such terms and conditions as it may impose to issue debentures in the security of the Government guarantee regarding re-payment of principal and payment of interest thereon in respect of loans issued to the corporate bodies implementing special schemes of agricultural development, irrigation etc., on the basis of Government Guarantee.(2)Such debentures may contain a term fixing a period not exceeding thirty years, from the date of issue, during which they shall be redeemable, or reserving to the Board the right, to call in at any time any of the debentures in advance of the date fixed for redemption, after giving to the debenture holders concerned not less than three month's notice in writing.(3)The total amount due on the debentures issued by the Board including those issued before the commencement of the Bihar Co-operative Societies (Amendment) Ordinance, 1975 and outstanding at any time shall not exceed the aggregate of-(a)the amounts due on the mortgages:(b)the value of the properties and other assets transferred or deemed to have been transferred under section 44-J to the State Co-operative Land Development Bank and subsisting at such time;(c)the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time;(d)the amount due on the Government guarantee on the basis of which loans have been issued to corporate bodies.(4)Debentures in excess of the limit specified in sub-section (3) may be issued with permission of the Trustee.
