(1) When the Government of Nepal takes a loan with a foreign government, a foreign government bank or a financial institution or agency for a project approved by the Government of Nepal in accordance with the prevailing laws of Nepal, the Government of Nepal may give a guarantee for such loan.
(2) If a public organization constructs an infrastructure construction project approved by the Government of Nepal after obtaining a permit or license in accordance with the prevailing federal law, and requests for a guarantee regarding the amount to be taken by such organization, the Government of Nepal may give a financial guarantee in relation to such amount based on the specified conditions and criteria. Explanation: For the purposes of this section, "public institution" means an institution, company or institution wholly or mostly owned or controlled by the Government of Nepal, established at the public level or established by the Government of Nepal in accordance with prevailing laws.
(3) The Government of Nepal may give collateral for the internal actions taken by the provincial governments and local levels with the consent of the Government of Nepal in accordance with the prevailing federal laws.
(4) According to sub-section (2) or (3), the reason why such public organization or state or local level should take a loan before the Government of Nepal gives a guarantee or counter-guarantee, the national interest involved in taking the loan and the foreign government, foreign government bank or financial institution or agency providing the loan Or the ability to repay the loan and interest at the time specified in the agreement with the organization should also be analyzed.
(5) According to this section, the public organization that has taken the guarantee of the Government of Nepal shall not be allowed to carry out any work to re-evaluate its capital, reduce its capital or sink its capital without the prior approval of the Government of Nepal.
(6) According to this section, it shall be the duty of the public organization receiving such trust to comply with the instructions given by the Government of Nepal from time to time in relation to the loan taken under the guarantee of the Government of Nepal.
(7) The public organization taking the guarantee of the Government of Nepal in accordance with this section: In case of dissolution or the possibility of dissolution, to the Government of Nepal.In case, any equity to which such organization is entitled according to the prevailing Nepalese law will be withheld and the amount guaranteed by the Government of Nepal from such equity and the interest thereof shall be levied.
(5) Regardless of what is written in the prevailing Nepalese law, no one else shall have a claim on the equity of the public organization that has taken the loan until the loan amount and interest amount guaranteed by the Government of Nepal are recovered.
(9) If the organization taking loans under the guarantee of the Government of Nepal is unable to repay the loan and interest according to the agreement with the foreign government, foreign government bank or financial institution or agency or public institution that provides the loan: If the loan and interest cannot be paid, the amount due to the loan and interest shall be paid to the Federal Reserve Fund. or other government funds will be charged.
(10) According to this section, there will be a committee consisting of the member coordinator of the National Planning Commission, the Ministry of Finance, the Ministry of Law, Justice and Parliamentary Affairs, and the secretary of the ministry related to the bailing project, to recommend the granting of bail or counter-guarantee by the Government of Nepal.
(11) Other arrangements related to bail shall be as prescribed.