Section 3. Establishment and incorporation of National Housing Bank

THE THIRD SCHEDULE. THE NATIONAL HOUSING BANK ACT, 1987 ACT NO. 53 OF 1987 [23 rd December , 1987.] - An Act to establish a bank to be known as the National Housing Bank to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Thirty-eighth Year of the Republic of India as follows: — CHAPTER II ESTABLISHMENT OF THE NATIONAL HOUSING BANK AND CAPITAL THEREOF 3. Establishment and incorporation of National Housing Bank . — (1) With effect from such date as the Central Government may, by notification, appoint, there shall be established for the purposes of this Act, a bank to be known as the National Housing Bank. (2) The National Housing Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued. (3) The head office of the National Housing Bank shall be at[1] [New Delhi or at such other place as the Central Government] may, by notification, specify. (4) The National Housing Bank may establish offices, branches or agencies at any place in India, and with the previous approval of[2] [the Central Government], at any place outside India. 3 [ 4. Capital.— (1) The authorised and paid-up capital of the National Housing Bank shall be three hundred and fifty crores of rupees: 4[Provided that the Central Government may, by notification, increase the authorised capital up to two thousand crore rupees or such other amount as may be determined by it from time to time.] (2) The Board may, on such terms and conditions, as determined by it from time to time, issue the increased authorised capital to[5] * the Central Government, scheduled banks, public financial institutions, housing finance institutions or such other institutions, as may be approved by the Central Government: Provided that no increase in the issued capital shall be made in such manner that[5] * the Central Government, public sector banks, public financial institutions or other institutions owned or controlled by the Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued capital of the National Housing Bank. ] 6[(3) The subscribed capital of one thousand four hundred and fifty crore rupees of the National Housing Bank, which has been subscribed to by the Reserve Bank, shall stand transferred to, and vested in the Central Government upon payment of the face value of the subscribed capital, to the Reserve Bank from such date as may be notified by the Central Government.]