8. Guarantee by State Government of Principal and interest 3[of the money to be borrowed by means of debentures or otherwise]. - (1) The principal of and interest on the "of the money to be borrowed by means of debentures or otherwise" issued under Section 6 shall in respect of such maximum amount as may be fixed by the State Government by notification in the Gazette in this behalf, and subject to such conditions as it may think fit to impose therein, carry the guarantee of the State Government.
(2) The State Government may, subject to such conditions as may be prescribed, increase of the maximum amount of any guarantee given under sub-section (1).
(3) The State Government may, after consulting the Boards and the Trustee -
(a) by notification in the official Gazette, and
(b) by notice in such of the principal newspapers in the State and of other States in India as the State Government may select in this behalf,
discontinue any guarantee given by it or restrict the maximum amount thereof or modify the conditions, 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 the official Gazette: Provided that the withdrawal, restriction or modification of any guarantee shall not in any way affect the guarantee carried by any debenture issued prior to the date on which such withdrawal, restriction or modification takes effect.
(4) Every notification and notice referred to in sub-section (3) shall, where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, set forth precisely the scope and effect of the restriction of modification, as the case may be.
4[(5) Notwithstanding anything to the contrary contained in any other provision of this Act, the board may borrow money from any of the institutions referred to in section 9-A, against the unconditional guarantee by the State Government in any other manner or means other than by issuance of debentures provided in section 6, on the same terms and conditions and limitation as provided for debentures in this Act]
(2) The State Government may, subject to such conditions as may be prescribed, increase of the maximum amount of any guarantee given under sub-section (1).
(3) The State Government may, after consulting the Boards and the Trustee -
(a) by notification in the official Gazette, and
(b) by notice in such of the principal newspapers in the State and of other States in India as the State Government may select in this behalf,
discontinue any guarantee given by it or restrict the maximum amount thereof or modify the conditions, 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 the official Gazette: Provided that the withdrawal, restriction or modification of any guarantee shall not in any way affect the guarantee carried by any debenture issued prior to the date on which such withdrawal, restriction or modification takes effect.
(4) Every notification and notice referred to in sub-section (3) shall, where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, set forth precisely the scope and effect of the restriction of modification, as the case may be.
4[(5) Notwithstanding anything to the contrary contained in any other provision of this Act, the board may borrow money from any of the institutions referred to in section 9-A, against the unconditional guarantee by the State Government in any other manner or means other than by issuance of debentures provided in section 6, on the same terms and conditions and limitation as provided for debentures in this Act]
Source footnotes
3. Subs. by U.P. Act No.13 of 2014 for the words "on debentures"4. Inserted by U.P. Act No.13 of 2014
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Section 1 · Short title, extent and commencementSection 2 · DefinitionsSection 3 · Number of Gram Vikas BanksSection 4 · Appointment of Trustee and his powers and functionsSection 5 · Trustee to be a Corporation SoleSection 6 · Issue of debentures by the BoardSection 7 · Vesting of property in Trustee and Debenture -holders charge on the assetsSection 9 · Guarantee FundIndia Code, Government of India. Text fetched 16 Oct 2026. Source metadata reports last modification: 2024-03-15. Check the linked official text and subsequent notifications when applying a provision.