Section 27 in The Warehousing Corporations Act, 1962
27. Borrowing powers of Warehousing Corporation.
(1)A Warehousing Corporation may, in consultation with the Reserve Bank and with the previous approval of the appropriate Government, issue and sell bonds and debentures carrying interest for the purpose of raising funds:Provided that the total amount of bonds and debentures issued and outstanding and of the other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up share capital and the reserve fund of the Corporation.(2)A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, borrow money--(i)from the Reserve Bank, or(ii)from the State Bank, for such periods for which, and upon any of the securities against which, it is authorised to advance and lend moneys, under the provisions of [the State Bank of India Act, 1955 (23 of 1955), or] [Substituted by Act 42 of 1976, Section 7, for certain words (w.e.f. 24-3-1976)](iii)[ from any [scheduled bank] [Inserted by Act 42 of 1976, Section 7, (w.e.f. 24-3-1976)] or(iv)from such insurance company, investment trust or other financial institution as may be approved by the Central Government in this behalf.](3)Subject to the proviso to sub-section (1), the Central Warehousing Corporation may borrow money from the Central Government and a State Warehousing Corporation may borrow money from the State Government and the Central Warehousing Corporation on such securities and on such terms and conditions as may be agreed upon between the borrowing corporation and the lender, in each case.(4)[ The bonds and debentures of a State Warehousing Corporation may be guaranteed by the appropriate Government on the recommendation of the board of directors of the State Warehousing Corporation at the time such bonds or debentures are issued.] [Substituted by Act No. 16 of 2015.]
