Section 62. Power of the Regional Development Authority to borrow and raise loans

(1) Subject to approval of the State Government, a Regional Development Authority may borrow and raise loans from any source including by issue of bonds, debentures and other instruments for carrying out the purpose of this Act or for servicing any loan obtained by it, upto such limits and on such rates and other conditions as the State Government may specify. (2) The Regional Development Authority shall maintain a sinking fund for the repayment of money borrowed and shall pay every year into the sinking fund such sum as may be sufficient for repayment within the period fixed for all moneys so borrowed. (3) The sinking fund or any part thereof shall be applied in, or towards, the repayment of the loan for which such fund was created and until such loan is wholly repaid, it shall not be applied for any other purpose.