(1) The State Government may constitute a Guarantee Fund on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise on account of loans advanced by the [Gram Vikas Bank] 4 on the security of mortgages not being fully recovered due to such circumstances as may be prescribed.
(2) The [Uttar Pradesh Gram Vikas Bank 2] 3 and the [Gram Vikas Bank] 4 shall contribute to such fund at such rates as may be prescribed.
[(2-A) The State Government may also contribute to the fund from time to time such, amount as it may deem fit.]
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(3) The fund shall be maintained and utilized ill such manner and for such purposes as may be prescribed.
[Power to borrow money 9-A Notwithstanding anything contained in the Uttar Pradesh Co-operative Societies Act, 1965 the Board may borrow money from the State Government or the Reserve Bank of India, or the National Bank for Agricultural and Rural Development of such other financial Institution, as may be approved by the Trustee.]
2
1. Ins. by Section 2 of U. P. Act No. 3 of 1979.
2. Added by section 7 of U.P. Act No. 16 of 1989.
3. Substituted by section 4 (b) of U.P. Act No. 19 of 1994.
4. Subs. by section 4 (d) ibid.
[The Uttar Pradesh Sahakari Gram Vikas Bank Act, 1964] [Section 10-13] Priority of mortgage over certain claims Act XIX of 1883
10. A mortgage executed [or charge created] 1 in favour of the [Uttar Pradesh Gram Vikas Bank] 6 or a [Gram Vikas Bank] 7 after the commencement of this Act, shall have priority over any claim of the, Government arising from a, loan granted, after the execution of such mortgage, [or creation of such charge] 2 under the Land Improvement Loans Act, 1883.
Right of [Gram Vikas Bank] 7 or of the [Uttar Pradesh Gram Vikas Bank 2] 5 to purchase mortgaged property U.P.
Act 1 of 1951
11. [(1) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for a [Gram Vikas Bank] 7 or the [Uttar Pradesh Gram Vikas Bank] 6 to purchase any property sold under this Act and the property so purchased shall be disposed of by such Bank by sale 'within period as may be fixed by the Trustee.]
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(2) Nothing in section 154 of the U. P. Zamindari Abolition and Land Reforms Act, 1950, or in any other law for the time being in force, fixing a maximum limit of agricultural holding shall apply to the acquisition of land by a [Gram Vikas Bank] 7 or the [Uttar Pradesh Gram Vikas Bank ] 6 [(2-A) if the bank has to lease out any land acquired by it under subsection (1) pending sale thereof, the period of lease shall not exceed one year at a time and the lessee shall not acquire any other interest in that property notwithstanding any provisions to the contrary in any other law for the time being in force.]4 Mortgages executed in favour of [Gram Vikas Bank]7 to stand vested in [Uttar Pradesh Gram Vikas Bank ]6
12. The mortgages executed in favour of and all other assets transferred to, a [Gram Vikas Bank] 7 by the members thereof, before or after the commencement of this Act, shall with effect from the date of such execution or transfer, be deemed to have been transferred by such [Gram Vikas Bank] 7 to the [Uttar Pradesh Gram Vikas Bank 2] 6 and shall vest in the [Uttar Pradesh Gram Vikas Bank.]
5 Power of Land Development Bank to receive money and grant discharges
13. Notwithstanding that a mortgage executed in favour of a [Gram Vikas Bank] 6 has been transferred or is deemed under the provisions of section 12 to have been transferred to the [Uttar Pradesh Gram Vikas Bank] 6 --
(a) all moneys due under the mortgage shall, in the absence of any specific direction to the contrary issued by the Board or the Trustee and communicated to the mortgagor, be payable to the [Gram Vikas Bank] 7 and such payment shall be as valid as if the mortgage had not been so transferred; and
(b) the [Gram Vikas Bank] 7 shall, in the absence of any specific direction to the contrary issued by the Board or the Trustee and communicated to the [Gram Vikas Bank] 7 , be entitled to sue on the mortgage or take any other proceeding for the recovery of the amount due under the mortgage.
1. Added by section 3 of U.P. Act No. 3 of 1979.
2. Ins. by section 3 ibid.
3. Subs. by section 4(a) ibid.
4. Ins. by section 4(b) ibid
5. Subs. by section 8 of U.P. Act No. 16 of 1989.
6. Substituted by section 4 (b) of U.P. Act No. 19 of 1994.
7. Subs. by section 4 (c) ibid.
[The Uttar Pradesh Sahakari Gram Vikas Bank Act, 1964] [Section 14-16] Right of Land Development Bank to pay prior debts of mortgagor Act, IV of 1882