Section 21 in The U.P. State Electricity Board (Issue of Bonds) Rules, 1964
21. Protection of Lenders and Holders of Bonds.
- A person holding any bond shall not be under any obligation to inquire into, or to take notice of, whether the borrowing or the creation or issue or grant of such bond was or was not within the competence of the Board under the Act or these rules or whether or not the Board or any meeting thereof was properly constituted or convened or whether or not the proceedings at any meeting of the Board were legal or regular, or to see to the application of any money borrowed or raised by any bond or be answerable for any loss or mis-appropriation thereof.
