Small Industries Development Bank of India Act,1989
Act No : 39
Section : POWER TO CALL FOR REPAYMENT BEFORE AGREED PERIOD
SECTION 40: POWER TO CALL FOR REPAYMENT BEFORE AGREED PERIOD
-Notwithstanding anything in any agreement to the contrary, the Small Industries Bank may, by notice in writing, require any industrial concern in the small-scale sector to which it has granted any loan or advance to discharge forthwith in full its liabilities to the Small Industries Bank,-
(a) if it appears to the Board that false or misleading information in any material particular was given in the application for the loan or advance ; or
(b) if the industrial concern in the small-scale sector has failed to comply with the terms of its contract with the Small Industries Bank in the matter of the loan or advance ; or
(c) if there is a reasonable apprehension that the industrial concern in the small-scale sector is unable to pay its debt or that proceedings for liquidation may be commenced in respect thereof ; or
(d) if the property pledged, mortgaged, hypothecated or assigned to the Small Industries Bank as security for the loan or advance is not insured and kept insured by the industrial concern in the small- scale sector to the satisfaction of the Small Industries Bank ; or depreciates in value to such an extent that, in the opinion of the Board, further security to the satisfaction of the Board should be given and such security is not given ; or
(e) if, without the permission of the Board, any machinery, plant or other equipment, whether forming part of the security or otherwise, is removed from the premises of the industrial concern in the small-scale sector without being replaced ; or
(f) if for any reason it is necessary to protect the interests of the Small Industries Bank.
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