Amendment status not verified — confirm the current text below against the official source.
Deduction from sale pror:eeds of aqncultural produae in certain cases -(1) Notwithstanding anythmg contameJ m any law for the time bemg in force, an applicant for a loan from a primary bank may execute an agreement m favour of that bank prov1dmg that it shall be lawful for ~he marketmg co-operative ~oc1eties or the Commodity Boards through which the agricultural produce belonging to the applicant IS marketed, to deduct such amount as may be specified in the agreement from the sale procef'ds of such agricultural produce marketed through such co-operative societies or boards and to pay the amounts so deducted to such pr1mary bank in satisfactiOn of any debt or other demand due by Lhe applicant to that bank. ' ' Explanatwn -For the purpose of this sectwn, "Commodity Boards" means the Coffee Board established under the Coffee Act, 1942 (Central Act 7 of 1942), the Tea Board established under the Tea Act, 1953 (Central Act 29 of 1953), the Rubber B·>ard consti- tuted under the Rubber Act, 1947 (Central Act 24- of 1947), the ~ Cardamom Board established under the Caraamorr. Act, 1965 (Central Act 42 of 1965), and the Coconut Development Board , established under the C.oconut Development Board Act, 1919 (Central Act 5 of 1979). •' ... 149 (2) On executiOn of an agre~mf'nt as provided I!J :;nb-!:icctJOn (1), the marketmg co-operative society or CommoJJt y Board referred to m. that sub-sectiOn shall, on a requisitiOn 111 wntmg by the primary bank and so long as such debt or demand or any part of it remams unpaid, make a deductiOn, m accol'dance w1th the requisition, from the s?,le proceeds of the agricultural produ<.e belongmg to the applicant anq marketed through them and pay the amounts so deducted to the pnmary bank withm seven days from the date of deductiOn. . (3) A_ny paymer:t made by a marketmg co-operative s•1ciet' or Commodity Board under sub!sectwn (2) shall be · vahd ami effectual agamst any demand upon such society or board by any person. •