law: State Financial Corporations Act, 1951 
  7. Additional capital of the Financial Corporation and its
  
  borrowing powers 
  (1) The Financial Corporation may, in consultation with the
  
  Development Bank and the Reserve Bank, issue and sell bonds and debentures
  
  carrying interest for the purpose of increasing its working capital and such
  
  bonds and debentures 8[shall, if so required by the Financial Corporation, be
  
  guaranteed by the State Government] as to the repayment of the principal and
  
  the payment of interest at such rate as the State Government may, on the
  
  recommendation of the Board based on the advice of the Reserve Bank fix 6[***].
  (2) The Financial Corporation may, for the purpose of carrying
  
  out its functions under this Act, borrow money from the Reserve Bank-
  (a) repayable on demand or on the expiry of a
  
  fixed period not exceeding ninety days from the date on which the money is so
  
  borrowed against the security of-
  (i) stocks, funds and securities (other than
  
  immovable property) in which a trustee is authorized to invest trust money by
  
  any law for the time being in force in India, or
  (ii) such bills of exchange and promissory
  
  notes as are eligible for purchase or rediscount by the Reserve Bank or as are
  
  fully guaranteed as to the repayment of the principal and payment of interest
  
  by the State Government;
  (b) repayable on the expiry of a fixed period
  
  not exceeding eighteen months from the date on which the money is so borrowed,
  
  against securities of the Central Government or of any State Government of the
  
  maturity, or subject to the previous approval of the State Government, against
  
  bonds and debentures issued by the Financial Corporation and maturing within a
  
  period not exceeding eighteen months from the date on which the money is so
  
  borrowed and every such bond and debenture shall be guaranteed by the State
  
  Government:
  PROVIDED that the amount borrowed by the
  
  Financial Corporation under clause (b) shall not at any time exceed in the
  
  aggregate 9[twice] the paid up share capital thereof.
  (2A) No money shall be borrowed by the Financial Corporation
  
  from the Reserve Bank under sub-section (2), except with the previous approval
  
  of the Development Bank.]
  (3) The Financial Corporation may, for the purposes of carrying
  
  out its functions under this Act, borrow money from the State Government in
  
  consultation with the Development Bank and] the Reserve Bank on such terms and
  
  conditions as may be agreed upon.
  (4) The Financial Corporation may, with the prior approval of
  
  the Development Bank, also borrow money from any financial institution notified
  
  in this behalf by the Central Government on such terms and conditions as may be
  
  agreed upon.
  (5) The total amount of bonds and debentures issued and
  
  outstanding, the amounts borrowed by the Financial Corporation under clause (b)
  
  of sub-section (2), sub-section (3) and sub-section (4) and of the contingent
  
  liabilities of the Financial Corporation in the form of guarantees given by it
  
  or underwriting agreements entered into by it shall not 10[* * *] exceed ten
  
  times the amount of the paid up share capital and the reserve fund of the
  
  Financial Corporation:
  3[PROVIDEDthat the Financial Corporation may, with the
  
  prior approval of the Development Bank, exceed the aforesaid limit up to thirty
  
  times the amount of the paid up capital and the reserve fund of the Financial
  
  Corporation.]