Section 46A:
Extension of jurisdiction of the Financial Corporation to other States by agreement.
1[46A. Extension of jurisdiction of the Financial Corporation to other States by
agreement.-- (1) Where a Financial Corporation has been established for any State 2
[and one or more
other States not served in whole or in part by a Financial Corporation] desires that the Financial
Corporation 3[should serve the needs of those States or of any area therein], and the States, after
consultation with the 4[Small Industries Bank], enter into an agreement which is published in the Official
Gazettes of each of those States, then the Financial Corporation shall, on the issue of a notification in the
Official Gazette by the Central Government, serve the needs of those States 5[or, as the case may be, of
the area therein] in terms of the agreement 5[and any Financial Corporation or any State may enter into
separate or successive agreements as aforesaid with one another or with other Financial Corporations of
States and in relation to different areas of the States].
6[(1A) Any agreement entered into under sub-section (1) may be modified or rescinded by mutual
agreement between the parties thereto and every such mutual agreement shall also provide for the
apportionment of assets and liabilities.]
(2) An inter-State agreement among the participating States may, as far as may be, make all such
provisions as are referred to in sub-section (2) of section 3A.]
Notes:
1 Ins. by Act 56 of 1956, s. 24 (w.e.f. 1-10-1956).
2 Subs. by Act 77 of 1972, s. 27, for "and any other State" (w.e.f. 30-12-1972).
3 Subs. by s. 27, ibid., for "should serve its needs" (w.e.f. 30-12-1972).
4 Subs. by Act 39 of 2000, s. 33, for "Development Bank" (w.e.f. 5-9-2000).
5 Ins. by Act 77 of 1972, s. 27 (30-12-1972).
6 Ins. by Act 77 of 1972, s. 27 (w.e.f. 30-12-1972).