Section 5
Appointment of Trustee and his powers and functwns.(1) The Reg1sLrar, or where the Government appoint any other person m this behalf, such person, shall oe the T for the purpose of securing the fulfilment of the obhgat10ns of the Central Mortgage Bank to the holders of de bent 1ssued by thP. Board. The mortg<4ges executed m favour of the Central Mortgage Bank
5. Appointment of Trustee and his powers and functwns.(1) The Reg1sLrar, or where the Government appoint any other person m this behalf, such person, shall oe the T for the purpose of securing the fulfilment of the obhgat10ns of the Central Mortgage Bank to the holders of de bent 1ssued by thP. Board. The mortg<4ges executed m favour of the Central Mortgage Bank
and other mortgages and assets transferrE-d or deemed under the prOVIsions of &ection 23 to have been tran:.ferred to the Central Mortgage Bank shall vest in the Trustee from the date of exer:ution or transfer. The holders of the debentures shall have a floating charge on all suc-h mortgagee; and assets, on the amounts paid under such mortgages and remammg in the hand3 of the B0ard or the Trustee and on the other properties of the Central Mortgage Bank. The lJowers and functions of the Trustee shall be governed by the instrument of trust executed between the Bank and the Trustee as modified from time to time by mutual agreement between the Board and the Trustee.
The Trustee appointed under sub-section (1) shall be a corporation sole lly the name of the Trustee for the debentures and as such shall have perpetual succession and a common seal and in his corporate name shall sue and be sued.
Gu11rantte by Government on principal of and interest on debentures issued under section 4.- (1) The principal of and the interest on tlle debentures Issued under sectwn 4 to su{;h maximum am·1unt as may be fixed by the Government and subject to such conditions as they may think fit to impose, shall, subject to the p10vis10ns of sub-section (3), carry the guarantee of the Government.
The Government may, after consultmg the State Legislative Assembly, increase the maximum amount of any guarantee given by them.
The Government may, after consulting the Board and the Truslee,-
(a) by notification 1n the Gazette, and
(b) by notice for not less than 14 days in such of the principal newspapers in the State and in other States in India, as the Guvernment may select in this behalf,
discontinue any guarantee given by them or restrict the maximum amount thereof or modify the condH10ns subject to which it is given, with effect from a specified date, not being earlier than six months from the date of publication of the notification in lhe Gazette.
In cases where the maximum amount of the guarantee is to be restncted or the conditions subject to which the guarantee is given are to be modified, the notification and notke aforesrud shall stt forth, with sufficient clearness, the scope and effect of the restriction or modification.
Explanation.-Tbe withdrawal, restnctlon or modification of any guarantee under this sub-section shall not affect, in any way, the guarantee carried by any de ben lures issued pnor to the date on which su..:h withdrawal, restriction or modification takes eff.ct.