law: National Bank for Agriculture and Rural Development Act, 1981 
  22. Conversion loan
  
  for production credit.- 
  Where the National
  
  Bank is satisfied that owing to drought, famine or other natural calamities,
  
  military operations or enemy action, any State co-operative bank, central
  
  cooperative bank, regional rural bank or any such financial institution or any
  
  financial institution falling under any such class of financial institutions,
  
  as may be approved by the Reserve Bank in this behalf, requires assistance
  
  under this section, it may provide to such bank or institution such financial
  
  assistance as it may deem fit by way of making loans and advances repayable on
  
  the expiry of fixed periods not exceeding seven years and on such terms and
  
  conditions as may be specified in this behalf by the National Bank :
  Provided that loans
  
  and advances may be made under this section only for the purpose of enabling
  
  the borrowing bank or institution,-
  a.     
  
    to
  
  pay any dues to the National Bank for credit extended for financing
  
  agricultural operations or the marketing of crops under clause (i) of sub-section(1)
  
  of section 21, or
  b.    
  
  
               
  
   i.        
  
    to
  
  make loans or advances to central co-operative banks or primary rural credit
  
  societies in cases where the borrowing bank is a State co-operative bank and
              
  
   ii.        
  
    to
  
  make loans and advances to primary rural credit societies in cases where the
  
  borrowing bank is a central co-operative bank, and such loans or advances in
  
  both the cases being repayable on the expiry of fixed periods not being less
  
  than eighteen months and not exceeding seven years, by way of reimbursement of
  
  loans and advances made by such co-operative banks or societies for agriculture
  
  or agricultural operations or for reimbursement of such loans or advances which
  
  have been converted into loans or advances repayable on expiry of fixed periods
  
  not being less than eighteen months and not exceeding seven years from the date
  
  of conversion:
  Provided further that
  
  no loan or advance shall be made under this section to a State cooperative bank
  
  or a central co-operative bank unless such loan or advance is fully guaranteed
  
  as to the repayment of the principal and payment of interest, by the State
  
  Government.