( 1 ) W11er.e an agriculturist creatcs a c1~11.gi:
land i l l 011 Iartd, or ally other itnmovable pl-opcl'ty i:)flich Ill:
f ( OWIIS 01' in which hc I ~ a s nn i ~ ~ t e r e s t in rzspcct oi' a hank by n declnrfitiun. arly fi nancirtl assistance given to him by il bank, hf:
shall make a declaration in the form sei out i n the sclledule hereto or as near thereto as circurns ta ilccs permit, declaring that thereby he creates, ill fauoulof the bank, a charge on such lsncl or his interest therein, or other im.~novable property, as the case may be, t o secure the financial assistahce given to him by the bank.
(2) A declaration made under sub-section ( 1 ) may be varied from time to time by the agriculturist with the consent of the bank in whose favour the declaration has been made and any such vari n t' lon shall take effect from such date on which the variation, if it had been an original declaration., would have effect under section 7.
EHARGES AND MORTGAGES IN FAVOUR OF BANKS AND THEIR PRIORITIES ,,,,, ., 5. Notwithstanding anything to the contrary con- orissa A C ~ disability in tained in the Orissa Co-operative Societies Act, 1962 hf crcatio~~ of charge and DT in any other law- for the time being in force and rnortgngcs. notjvithstanding that any land- or interest therein stands already charged or mortgaged in favour of a Co-operative Society, it shall be lawful for arl agricult~zrist to create a charge or mortgage on sucl) land or interest therein in favour of a bank as security for any financial assistance given to the agriculturist by that bank, Priority of 6. ( I ) Notwithstanding anything to the contrary charflcs and mor l~36CS in any law for the t h e behg in force,- in hvour of Govcrnrncnt ,r n CO- .petntavc
(a) no charge or mortgage created on any land ocicty. or interest thereh, after the comencement of this Act, in favour of Government in respect of a loan under the Land Improvenlent Loans Act, 1883 or the Agriculturist's Loans Act, 158d or in favour of a Co-opcrative Society i lz respect of a Ioan granted by such society, shall have priority over a charge or mortgage on such land or intercst created by an agriculturist in favour of a bank as security for financial assistance given to .the agriculturist by the bank after the commencemetlt of this Act and prior to the charge or mortgage in favour of Government or the Co-operative Society, as the case may be; and i ~ . .-;.! (b) any charge or mortgage created on any land or interest therein in favour of a bank in respect of financial assistance given to an agriculturist by that bank . . , shall have priority over any other charge or mortgage that may have been created - I over such land or interest in favour of any. person other than Government, a . . ' co-operathe society or any other bank, ' . prior. to the date on which the charge or L .
. .
mortgage was created in'favour of the bank.
'- (2) Where. different charges or mortgages over the same land or interest therein have been created by an 'agriculturist in favour of Government, a cooperative society or a bank or more than one bank, any such charge or mortgage created as security for financial assistance given by Government, co-operative society or the bank or banks by way of tcnn loan for development purposes shall have priority over the other charges or mortgages created in favotrr of Government, co-operativc society or any of the banks, provided prior notice of any sucl~ financia1 assistance by w a y of term loan for developn~ent purpose had been given to such Govermne~lt, co-opera t ive society er bank and such Governlent, co-opera f ive society or.bank has concurred in such financial assistance, abd where more ,than one such cl~arge or mortgag is as security for financial assistance given by way of term loan, the charges or ~nortgages by way of security for term loan for development purposes will rank for priority in zcc~rdance with the dates of their creation.
Explar.lario!l,--For the purposes of tlds section, "term loail for development purpose" shall mean financial assistance which would generally lead to improvement of agriculture or building up of assets in agricult~rre, but shall not include financial assistance for meeting wcrIciqg capital expenses, seasonal agricultural operations and marketing of crops.
(3) Nothing in this section shall apply to borrowings only from one or more co-operative societies.
Registration
7. Notwithstanding anything contained in the .r char= Registration Act, 1908, a charge in respect of which Id or 1908 and marl- a decIaration has been made under sub-section (1) gage in favour of section 4, or in respect of which a variation has banks. been made under sub-section (2) of that section, or a mortgage executed by an agriculturist in favour of a bank in respect of financial assistance given by that bank, shall be deemed to have, been duly registered in accordance with the provisions of that Act, with effect from the date of such charge, variation or mortgage, as the case may be, provided that the bank sends to the SuGRegistrar within the local limits of whose jurisdiction the whole or anypqrt of the property charged or mortgaged is situate, withh a period of thirty days, by registered post with acknowledgement due, two copies of the .document creating such charge, variation or mortgage duly certified to be true copies by an employee of the bank authorised to s i p on its behalf.
s strict ions 8. (1) Notwithstandiilg anything cantaified in on creation any law for the time being in force, an agriculturist of tenancy ,, ,, who has availed hjrnself of financial assisfane from cu~tucist a bank by creating a charge or mortgage on land or borrower. interest therein, shall not, SO long as the hancial assistance continues to be outstanding, lease out or create any tenancy rights on such land or interest without prior permission in writing of the bank.
(2) Any lease granted or tenancy rights created in contravention of this zzction shaJl be void, ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS
9. Notllhg in ally law shall prevcllt in anyRemova10f manner a bank from causiilg any land, crop, movables bar to attachment and or any interest thereill chsrged or mortgaged to it saIc by by an agriculturist to seclx-c any f nancial assistance, z;7 Of to be attached and sold through a civil court and applying the proceeds of such sale towards all moneys due to it from t h t agriculturist including the costs and expenses as may be awarded by the court.