Such policy should include overall limit on such financing, terms and conditions of eligibility of borrowers, security, margin, etc. While the Board may frame its own guidelines and safeguards for such lending, such acquisition(s) should be beneficial to the company and the country. The finance would be subject to compliance with the statutory requirements under Section 19(2) of the Banking Regulation Act, 1949.
Ben S Bernanke: Fiscal sustainability Speech by Mr Ben S Bernanke, Chairman of the Board of Governors of the Federal Reserve System, at the Annual Conference of the Committee for a Responsible Federal Budget, Washington DC, 14 June 2011. The original speech, which contains various links to the documents mentioned, can be found on the US Federal Reserve System’s website.