Section 38B
Securitisation of debt.
The National Bank for Agriculture and Rural Development Act, 1981
About this Act
An Act to establish a development bank to be known as the National Bank for Agriculture and Rural Development for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas and for matters connected therewith or incidental thereto.
1[38B. Securitisation of debt.--Notwithstanding anything contained in this Act, the National Bank
may--
(a) create one or more trusts and transfer loans and advances granted by it, with or without the securities, to such trusts, for consideration;
(b) set aside loans or advances held by the National Bank and issue and sell securities based upon such loans or advances so set aside in the form of debt obligations, trust certificates of beneficial interest or other instruments, by whatever name called, and act as a trustee for the holders of such securities.]
(a) create one or more trusts and transfer loans and advances granted by it, with or without the securities, to such trusts, for consideration;
(b) set aside loans or advances held by the National Bank and issue and sell securities based upon such loans or advances so set aside in the form of debt obligations, trust certificates of beneficial interest or other instruments, by whatever name called, and act as a trustee for the holders of such securities.]
Notes
1. Ins. by s. 24, ibid. (w.e.f. 1-2-2001).