(1) With the previous sanction of the Trustee, the Board may from time to time issue debentures of one or more denominations for such periods as it may deem expedient on the security of the mortgages and assets held by or transferred or deemed under the provisions of Section 87 to have been transferred by the 1[Co-operative Agricultural and Rural Development Bank] to the 1[State Co-operative Agricultural and Rural Development Bank] and other properties of such Bank.
(2) Such debentures may contain a term fixing a period not exceeding ten years from the date of issue during which they shall be irredeemable or reserving to the Board the right to call in at any time of the debentures in advance of the date fixed for redemption after giving to the debenture-holder concerned not less than three months notice in writing.
(3) The total amount due on the debentures issued by the Board and outstanding at any time shall not exceed the aggregate of–
(a) the total amount due on the mortgages held by the 1[State Cooperative Agricultural and Rural Development Bank] or transferred or deemed under the provisions of Section 87 to have been transferred to it by the 1[Co-operative Agricultural and Rural Development Bank] and the value of the assets in respect of the land mortgage business held by the 1[State Co-operative Agricultural and Rural Development Bank] and subsisting at such time; and
(b) the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time.
(4) Notwithstanding anything contained in this Chapter–
(a) the Board may, with the previous sanction of the Trustee, issue
1. Substituted by Act 23 of 1994.
2. Substituted by Orissa Act 5 of 1970.
(4) Every notification and notice referred to in Sub-Section (3) shall, where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, set forth precisely the scope and effect of the restriction or modification, as the case may be.
1[83-A. Grant of loan by 2[Co-operative Agricultural and Rural Development Bank] :– Any 2[Co-operative Agricultural and Rural Development Bank] may grant loan to its members against the creation of a charge on or mortgage of land free of encumbrances].
3[1[83-B. Applicant for loan to make a declaration :– (1) Every applicant for a loan to a 2[Co-operative Agricultural and Rural Development Bank] shall make a declaration in the form prescribed by the 4[Co-operative Agricultural and Rural Development Bank] before an officer authorised by the Registrar this behalf, on solemn affirmation that the land sought to be in mortgaged is free from all encumbrances and that the mortgagor is in possession thereof and has the right to create the mortgage.
(2) The declaration made under Sub-Section (1) shall be conclusive, final and binding.
(3) If at any time a declaration made under Sub-Section (1) is found to be false or defective, the 1[Co-operative Agricultural and Rural Development Bank] shall, subject to the provisions of Section 85, have a first charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the mortgage deed and the Development Bank may proceed against all such properties of the mortgagor under Section 91.
Explanation – A charge created under Section 34 shall not constitute an encumbrance for the purposes of this Section and Section 83-A.
(4) Only those applications which conform to the requirements of Sub- Section (1) shall, in accordance with the Rules made in that behalf, be taken into consideration by the bank.]
2[83-C. Order granting loan conclusive of certain matters :– A written order by the 1[Co-operative Agricultural and Rural Development Bank] or any Committee or other person authorised by this Act or the bye-laws of the bank to grant loans for any of the purposes specified in the bye-laws of the concerned bank, granting, either before or after the commencement of this Act, a loan for the benefit of the land or for any productive purpose specified therein shall, for the purposes of this Act, be conclusive of the following matters, namely :–
(a) that the work described or the purpose for which the loan is granted is an improvement or productive purpose, as the case may be, within the meaning of the bye-laws of the Society;
1. Deleted by Orissa Act 5 of 1970.
2. Substituted by Orissa Act 23 of 1994.
more of the co-sharers of a Hindu Joint Family or by any Co-owner or by any purchaser from them, who is or are in possession of the said property on the date of the mortgage or charge and such possession is certified by a Revenue Officer not below the rank of a Revenue Inspector in the form to be prescribed by the 1[State Co-operative Agricultural and Rural Development Bank], the same shall remain a first charge on the said land and the certificate of possession so granted shall be conclusive and binding and shall not be called in question in any Court or Tribunal.
(2) Notwithstanding anything contained in any other law, custom or usage to the contrary, any loan given by a 1[Co-operative Agricultural and Rural Development Bank] shall remain a first charge on the property so mortgaged till it is fully satisfied and discharged, notwithstanding a partition, settlement, sale, gift, transfer, encumbrance, charge or any other liability made or created, whether by or through Court, or under any Act, mutual agreement, arbitration or by any other means, and any person who acquires the said property in any manner whatsoever shall be liable to discharge the loan.
(3) The aforesaid provisions shall apply notwithstanding the provisions of the Orissa Consolidation of Holdings and Prevention of Fragmentation of Land Act, 1972 (Orissa Act 21 of 1972) and the Orissa Land Reforms Act, 1960 (Orissa Act 16 of 1960).]