law: National Bank for Agriculture and Rural Development Act, 1981 
  28. Security for credit.
  1.     
  
    No
  
  accommodation shall be granted by the National Bank under clause (a) or clause
  
  (c) of sub-section (1) of section 25 or section 30 or section 32 to an
  
  institution other than a scheduled bank unless it is fully and unconditionally
  
  guaranteed by the Government as to the repayment of principal and payment of
  
  interest:
  Provided that no such
  
  guarantee shall be required in cases in which security to the satisfaction of
  
  the Board is furnished by the borrowing institution.
  1.     
  
  
  2.     
  
    No
  
  accommodation shall be granted by the National Bank under clause (a) or clause
  
  (c) of sub-section (1) of section 25 or section 32 to any scheduled bank unless
  
  security to the satisfaction of the Board is furnished by such scheduled bank,
  3.     
  
    Notwithstanding
  
  anything contained in sub-section (1) or sub-section (2), no guarantee or
  
  security referred to therein shall be required in cases in which the Board, for
  
  reasons to be recorded in writing, decides that no such security or guarantee
  
  is necessary in respect of a scheduled bank, a State co-operative bank or any
  
  person or class of persons, specifically approved by the Board or in respect of
  
  any scheme or class of schemes, having regard to the nature and scope of the
  
  scheme or schemes for which accommodation is proposed to be granted by the
  
  National Bank.