Unit Trust of India Act,1963
Act No : 52
Section :
Borrowing powers.
20. Borrowing powers. (1) 2[The Trust may borrow, whether in India or outside India] from any authority or person, not being Government or the Reserve Bank, against such security and on such terms and conditions as may be agreed upon. 3*[(2) The Trust may borrow money from the Reserve Bank- (i) repayable on demand or on the expiry of a fixed period not exceeding ninety days from the date on which the money is so borrowed, against stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India; (ii) repayable on demand or within a period of eighteen months from the date on which the money is so borrowed, against the security of the bonds which the Trust may issue with the approval of the Central Government; (iii)on such terms and conditions and against the security of such other property of the Trust as may be specified in this behalf by the Reserve Bank for the purposes of any scheme other than the first unit scheme: ---------------------------------------------------------------------- 1. Ins. by Act 63 of 1985, s.6 (w.e.f. 23.4.1986). 2. Subs. by s. 7, ibid. (w.e.f. 23.4.1986). 3. Subs. by Act 17 of 1966, s. 5, for sub-sections (2), (3) and (4) (w.e.f. 10-6-1966). 156 Provided that any amount borrowed under this clause and outstanding at any one time shall not exceed- (a) five crores of rupees in respect of each such scheme; and (b) ten crores of rupees in respect of all such schemes in the aggregate. (3) The bonds issued by the Trust under sub-section (2) shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central Government at the time the bonds are issued.]
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