Section 26C. Power of credit institutions to vary certain agreements

26C. Power of credit institutions to vary certain agreements. [1][26C. Power of credit institutions to vary certain agreements.--Notwithstanding anything contained in any agreement under which any term loan has been sanctioned by the credit institution before the 1st day of October, 1991, it shall be lawful for the credit institution to vary the agreement, so as to increase the rate of interest stipulated therein to the extent to which such institution is liable to pay the interest-tax under this Act in relation to the amount of interest on the term loan which is due to the credit institution. Explanation.--For the purposes of this section, "term loan" means a loan which is not repayable on demand.] [Footnotes] 1. Subs. by Act 49 of 1991, s. 110, for sections 23 to 26 (w.e.f 1-10-1991).