(1) A Board may, with the previous sanction of the Central Government and after due notification in the Official Gazette, raise loans for the purposes of this Act:
(2) Loans may be raised by a Board in the open market on Port Trust securities issued by it or may be obtained from the Central Government or a State Government.
(3) The terms of all loans shall be subject to the approval of the Central Government.
(1) A Board may, with the sanction of the Central Government, prescribe the form in which Port Trust securities shall be issued by it and the mode in which, and the conditions subject to which, they may be transferred.
(2) The holder of any Port Trust security in any form may obtain in exchange therefor, upon such terms as the Board may from time to time determine a Port Trust security in any other form prescribed by regulations.
(3) The right to sue in respect of moneys secured by Port Trust securities shall be exercisable by the holders thereof for the time being without preference in respect of priority of date.
(1) Notwithstanding anything contained in section 45 of the Indian Contract Act, 1872 (9 of 1872)-
(a) When any Port Trust security is payable to two or more persons jointly, and either or any of them dies, the Port Trust security shall be payable to the survivor or survivors of those persons, and
(b) When any such security is payable to two or more persons severally and either or any of them dies, the security shall be payable to the survivor or survivors of those persons, or to the representatives of the deceased, or to any of them.
(2) This section shall apply whether such death occurred or occurs before or after the appointed day.
(3) Nothing herein contained shall affect any claim which any representative of a deceased person may have against the survivor or survivors under or in respect of any security to which sub-section (1) applies.
(4) For the purposes of this section, a body incorporated or deemed to be incorporated under the Companies Act, 1956, (1 of 1956) or the Co-operative Societies Act, 1912 (2 of 1912) or any other enactment for the time being in force, whether within or without India, shall be deemed to die when it is dissolved.
Where two or more persons are joint holders of any Port Trust security, any one of those persons may give an effectual receipt for any interest payable in respect of such security unless notice to the contrary has been given to the Board by any other of the holders.
Notwithstanding anything in section 15 of the Negotiable Instruments Act, 1881, (26 of 1881) no endorsement of a Port Trust security, which is transferable by endorsement, shall be valid unless made by the signature of the holder inscribed on the back of the security itself.
Notwithstanding anything in the Negotiable Instruments Act 1881, (26.of 1881) a person shall not by reason only of his having indorsed any Port Trust security be liable to pay any money due, either as principal or as interest, there under.
(1) The signature of the person authorised to sign Port Trust securities on behalf of the Board may be printed, engraved or lithographed or impressed by such other mechanical process, as the Board may direct on such securities.
(2) A signature so printed, engraved, lithographed or otherwise impressed shall be as valid as if it had been inscribed in the proper handwriting of the person so authorised.
(1) When any Port Trust security is alleged to have been lost, stolen or destroyed either wholly or in part, and a person claims to be the person to whom but for the loss, theft or destruction it would be payable, he may, on application to the Board and on producing proof to its satisfaction of the loss, theft or destruction and of the justice of the claim and on payment of such fee, if any, as may be prescribed by regulations, obtain from the Board an order for:
(a) The payment of interest in respect of the security said to be lost, stolen or destroyed, pending the issue of a duplicate security; and
(b) The issue of a duplicate security payable to the applicant.
(2) An order shall not be passed under sub-section (1) until after the issue by the Board of the prescribed notification of the loss, theft or destruction.
(3) A list of the securities in respect of which an order is passed under sub-section (1) shall be published in such manner as the Board may prescribe.
(4) If at any time before the Board becomes discharged under the provisions of this Act from liability in respect of any security the whole of which is alleged to have been lost, stolen or destroyed, such security is found, any order passed in respect thereof under this section shall be cancelled.
(1) A Board may, subject to such conditions as it may prescribe, on the application of a person claiming to be entitled to a Port Trust security or securities issued by it, on being satisfied of the justice of the claim and on delivery of the security or securities receipted in such manner and on payment of such fee, if any, as it may prescribe, convert, consolidate or sub-divide the security or securities, and issue to the applicant a new security or securities accordingly.
(2) The conversion, consolidation or sub-division referred to in sub-section (1) may be into a security or securities of the same, or different classes or of the same or different loans.
74A.1*Recognition as holder of Port Trust securities in certain cases
The person to whom a duplicate security has been issued under section 73 or a new security or securities has or have been issued under section 74 shall be deemed for the purposes of section 74B to have been recognised by the Board as the holder of the security or securities; and a duplicate security or a new security or securities so issued to any person shall be deemed to constitute a new contract between the Board and such person and all persons deriving title thereafter through him.
74B. Legal effect of recognition by the Board under section 74A No recognition by the Board of a person as the holder of a Port Trust security or securities shall be called in question by any court so far as such recognition affects the relations of the Board with the person recognised by it as the holder of a Port Trust security or securities or with any person claiming an interest in such security or securities; and any such recognition by the Board of any person shall operate to confer on that person a title to the security or securities subject only to a personal liability to the rightful owner of the security or securities for money had and received on his account.
Notwithstanding anything contained in 1*[the limitation Act, 1963 (36 of 1963)]-
(i) On payment of the amount due on a Port Trust security on or after the date on which payment becomes due, or
(ii) When a duplicate security has been issued under section 73, or
(iii) When a new security or securities has or have been issued upon conversion, consolidation or sub-division under section 74, the Board shall be discharged from all liability in respect of the security or securities so paid or in place of which a duplicate or new security or securities has or have been issued-
(a) In the case of payment: after the lapse of six years from the date on which payment was due;
(b) In the case of a duplicate security: after the lapse of six years from the date of the publication under sub-section (3) of section 73 of the list in which the security is first mentioned or from the date of the last payment of interest on the original security, whichever date is later;
(c) In the case of a new security issued upon conversion, consolidation or sub-division-
After the lapse of six years from the date of the issue thereof.
A Board may, from time to time, make regulations to provide for all or any of the following matters, namely:
(a) The person, if any, authorised to sign, and the mode of affixing the corporate seal and of attestation of documents relating to Port Trust securities issued or to be issued by the Board;
(b) The manner in which payment of interest in respect of such Port Trust securities is to be made, recorded and acknowledged;
(c) The circumstances and the manner in which such Port Trust securities may be renewed;
(d) The circumstances in which such securities must be renewed before further payment of interest thereon can be claimed;
(e) The form in which such securities delivered for renewal, conversion, consolidation or sub-division are to be receipted;
(f) The proof which is to be produced by a person applying for duplicate securities;
(g) The form and manner of publication of the notification mentioned in sub-section (2) of section 73 and the manner of publication of the list mentioned in sub-section (3) of that section;
(h) The nature and amount of indemnity to be given by a person applying for the payment of interest on Port Trust securities alleged to have been wholly or partly lost, stolen or destroyed, or for the issue of duplicate Port Trust securities;
(i) The conditions subject to which Port Trust securities may be converted, consolidated or sub-divided;
(j) The amounts for which stock certificate may be issued;
(k) Generally, all matters connected with the grant of duplicate, renewed, converted, consolidated and sub-divided securities;
(l) The fees to be paid in respect of the issue of duplicate securities and of the renewal, conversion, consolidation and sub-division of Port Trust securities;
(m) The fees to be levied in respect of the issue of stock certificates.
All loans contracted by a Board under this Act shall be raised in India, and in Indian currency, unless the Central Government, by notification in the Official Gazette, otherwise directs.
All loans raised by a Board under this Act shall be a first charge on-
(a) The property vested, or which may hereafter during the currency of the loans become vested, in the Board 1*[other than-
(i) Any sum set apart by the Board:
(1) As the sinking fund for the purpose of paying off any loan; or
(2) For the payment of pension to its employees; or
(ii) The provident or pension fund established by the Board; and]
(b) The rates leviable by the Board under this Act.
The Central Government or a State Government shall have in respect of loans made by it to a Board, or of loans made to any other authority for the repayment of which the Board is legally liable, the same remedies as holders of Port Trust securities issued by the Board; and such Government shall not be deemed to possess any prior or greater rights in respect of such loans than holders of such Port Trust securities: Provided that where the terms of any such loan made before the appointed day expressly provide that the loan shall have priority over all other loans in the matter of repayment by the Board, such loan shall have priority.
A Board may, with the previous sanction of the Central Government, apply any sums, out of moneys which may come into its hands under the provisions of this Act and which can be so applied without prejudicing the security of the other holders of Port Trust securities, in repaying to the Government any sum which may remain due to it in respect of the principal of any loan although the time fixed for the repayment of the same may not have arrived: Provided that no such repayment shall be made of any sum less than ten thousand rupees; and that, if such repayment is made, the amount of interest in each succeeding installment shall be so adjusted as to represent exactly the interest due on the outstanding principal.
(1) In respect of every loan raised by a Board under this Act, which is not repayable before the expiration of one year from the date of the loan, the Board shall set apart half-yearly out of its income as a sinking fund a sum sufficient to liquidate the loan within a period which shall not in any case, unless the previous consent of the Central Government has been obtained, exceed thirty years; but the maximum period shall not in any case exceed sixty years:
Provided that a sinking fund need not in the absence of any stipulation to that effect be established in the case of loans taken by the Board from the Central Government or any State Government.
(2) Where any sinking fund has, before the appointed day, been established by any authority in respect of a loan raised by it for which loan the Board is liable under this Act, the sinking fund so established by that authority shall be deemed to have been established by the Board under this section.
(1) The sums so set apart by a Board under sub-section (1) of section 81 and the sums forming part of any sinking fund referred to in sub-section (2) of that section shall be invested in public securities or in such other securities as the Central Government may approve in this behalf, and shall be held in trust for the purposes of this Act 1*[by the Board].
(2) A Board may apply the whole or any part of the sums accumulated in any sinking fund in or towards the discharge of the moneys for the repayment of which the fund has been established:
Provided that it pays into the fund in each year, and accumulates until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been produced by the sinking fund, or the part of the sinking fund so applied.
(1) A sinking fund established for the liquidation of any loan shall be subject to annual examination by such person as may be appointed by the Central Government in this behalf, and the person so appointed shall ascertain whether the cash and the current market value of the securities at the credit of the fund are actually equal to the amount which would have been accumulated had investments been regularly made and had the rate of interest as originally estimated been obtained thereon.
(2) A Board shall pay forthwith into the sinking fund any amount which the person appointed under sub-section (1) to conduct the annual examination of the fund may certify to be deficient, unless the Central Government specifically sanctions a gradual readjustment.
(3) If the cash and the current market value of the securities at the credit of a sinking fund are in excess of the amount which should be at its credit, the person appointed under sub-section (1) shall certify the amount of this excess, and the Board may, with the previous sanction of the Central Government,-
(a) Withdraw the whole or any part of the certified excess in which case the Trustees in whose names the sinking fund is invested under sub-section (1) of section 82, shall forthwith transfer securities of the requisite current market value, or cash and securities of the requisite current market value, to the Board, or
(b) Reduce or discontinue the half-yearly contributions to the sinking fund required under section 81, or
(c) Adopt a combination of these measures.
Nothing contained in this Act shall be deemed to affect the power of the Board to raise loans under the Local Authorities Loans Act, 1914 (9 of 1914).
Notwithstanding anything contained in this Act, a Board may borrow moneys by means of temporary overdraft or otherwise by pledging the securities held by the Board in its reserve funds or on the security of the fixed deposits of the Board in its banks:
Provided that such temporary overdrafts or other loans:
(a) Shall not at any time have a longer currency than six months; and
(b) Shall not be taken, without the previous sanction of the Central Government, if at any time in any year the amount of such overdrafts or other loans exceeds 1*[such amount as the Central Government may fix in this behalf and different amounts may be fixed with respect to different Boards]:
Provided further that all moneys so borrowed by temporary overdrafts or otherwise shall be expended for the purposes of this Act.
International Bank for Reconstruction and Development or other foreign institutions
Notwithstanding anything contained in this Act or any other law for the time being in force, a Board may, with the previous sanction of the Central Government and on such terms and conditions as may be approved by that Government, raise for the purposes of this Act loans in any currency or currencies from the International Bank for Reconstruction and Development or from any other bank or institution in any country outside India;
and no other provision of this Chapter shall apply to or in relation to any such loan unless the terms and conditions of the loan or the approval thereof by the Central Government otherwise provide.
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