(1) (i) The Corporation may, in pursuance of a resolution passed at a meeting of the Standing Committee, and with the prior approval of the Central Government, raise loans for the purposes of the Act.
(ii) In particular and without prejudice to the generality of the foregoing power,the Corporation may raise loans-
(a) for the acquisition of land and/or the raising of buildings thereon;or
(b) to repay a loan raised under this rule; or
(c) for any other purpose approved by the Central Government.
2. All loans under this rule shall be obtained-
(i) from the Central Government on such rates of interest and such terms as to the time and method of repayment as the Central Government may specify; or
(ii) with the approval of the Central Government, from the Reserve or the State Bank of India or any of its subsidiaries or any other scheduled bank .
(3) Where a loan is obtained from the Reserve or the State Bank of India or any of its subsidiaries as provided in clause (ii) of sub-rule (2), the Corporation may, with the approval of the Central Government, grant mortgages of all or any of the property vested in it for securing the repayment of the sums so advanced,with interest.
(4) All payments due from the Corporation for interest on and repayment of loans shall be made in such manner and at such time as may have been agreed upon:
Provided that the corporation may apply any sums which can be so applied, in repaying any amount due in respect of the principal of any loan although the repayment of the same may not be due.
(5) No expenditure incurred out of loan shall be charged by the Corporation to capital, except with the previous sanction (or under the direction) of the Central Government.
(6) The Corporation shall submit to the Central Government an annual statement by the thirtieth of April each year showing the loans raised and repayments made during the preceding year.
