Amendment status not verified — confirm the current text below against the official source.
Charge on land, owned by members or held as tenants by members borrowing loans from certain co-operative societies.- (1) Notwithstanding anything contained in this Act or in any other law for the time being in force,— (i) any person who makes an application to a co-operative society of which he is a member for a loan shall, if he owns any land, or holds any land as a tenant make a declaration in the prescribed form. Such declaration shall state that the applicant thereby creates a charge on the land owned by him or on his interest in the land held by him as tenant and specified therein for the payment of the amount of the loan which the society may make to the member in pursuance of the application and for all future advances, if any, required by him which the society may make to the member as such member subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances; (ii) a declaration made under clause (i) may be varied at any time by a member with the consent of the co-operative society in favour of which such charge is created; (iii) no member shall alienate the whole or any part of the land or any interest of his in the land specified in the declaration made under clause (i) or varied under clause (ii) until the whole amount borrowed by the member together with interest thereon is paid in full: 1959:KAR.ACT 11] Co-operative Societies 77 Provided that standing crops on any such land may be alienated with the previous permission in writing of the society; 1 [Provided further that it shall be lawful for a member to mortgage such lands or any part thereof in favour of the State Government or an 2 [Agricultural and Rural Development Bank] 2 : Provided also that if a part of the amount borrowed by a member is paid, the co-operative society with the approval of the financing bank to which it may be indebted may, on an application from the member, release from the charge created by the declaration made under clause (i) or varied under clause (ii), such part of the land or of the interest in the land specified in the declaration as it may deem proper, with due regard to the security for the balance of the amount of loan outstanding from the member.] 1