(1) It shall be lawful for an agriculturist to create a charge on the moveable property owned by him, or on the crops raised by him, standing or otherwise, or other produce from land cultivated by him, to the extent of his interest therein, in favour of a bank, to secure financial assistance from that bank, notwithstanding that he may not be the owner of the land on or from which the crop or other produce is raised.
(2) Where a charge is created by an agriculturist under sub-section (1) on any movable property, crops or other produce to secure any financial assistance given to him by a bank, then, notwithstanding anything to the contrary in the Cooperative Societies Act, no subsequent charge in respect of financial assistance provided to such agriculturist by a co- operative society shall have 10 of 1963.
I of 1956.
Guj.X of 1962.
I of 1956.
Removal of restrictions on alienation of land by agriculturists in favour of banks.
Charge on crop and other movable property in favour of a bank.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
6 of 13 priority over such charge on the crops or other produce raised by him, or, as the ease may be, on any other movable property, in respect of any financial assistance given to him by the bank.
(3) A bank may distrain and sell, through an officer designated by the State Government in this behalf, the crop or other produce or other movables charged to that bank to the extent of the agriculturists interest therein, and appropriate the proceeds of such sale towards all moneys due to the bank from that agriculturist, in respect of the financial assistance.