(1) When any property is mortgaged to a co-operative land development bank for payment of a prior debt or part thereof of a mortgagor, the co-operative land development bank shall, notwithstanding 4 of 1882.
the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, by serving a notice in writing in the prescribed manner require any person to whom such debt is due to receive payment of such debt or part thereof from it within such period as may be specifed in the notice.
(2) The person on whom a notice is served under sub-section (1) shall be bound to receive payment of the amount tendered by the cooperative land development bank. If their is a disagreement between the mortgagor and such person as regards the amount of the debt, the receipt of the sum tendered by the co-operative land development bank shall not prejudice the right of such person to recover the balance amount of the debt claimed by him.
(3) If any person does not accept the notice served under sub-section
(1) or fails to receive payment of the debt or part thereof within the period specified in the notice, the debt or part thereof shall cease to carry interest from the expiry of such period.
105. Subject to the provisions of section 104 and the rules, a cooperative land development bank shall receive applications for loan made in the prescribed manner and deal with such applications in accordance with the rules before granting the loan.
106. Notwithstanding anything contained in any other law for the time being in force, a mortgagor shall not be entitled to transfer or create a charge on the property mortgaged to a co-operative land development bank without the concurrence of the co-operative land development bank:
Provided that the co-operative land development bank shall not give its concurrence without the previous sanction of the financing bank:
Provided further that the financing bank shall, if it accords sanction, send a copy thereof to the Trustee, if any, appointed under section 44.
Payment of prior debts of mortgagor.
Procedure for dealing with applications for loan.
Restriction on transfer of, or charge on, equity of redemption.
373 The West Bengal Co-operative Societies Act, 1983.
Mortgage not to be questioned on insolvency of mortgagor.
[West Ben. Act (Chapter XIII.—Special provisions for co-operative land development bank, central co-operative bank, primary co-operative credit society and apex housing society.—Sections 107-109.)
107. Notwithstanding anything contained in any law relating to insolvency for the time being in force, a mortgage executed in favour of a co-operative land development bank shall not be called in question on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the co-operative land development bank preference over the creditors of the mortgagor.
Priority of mortgage over certain loans.
Constructive borrowing.
108. A mortgage executed in favour of a co-operative land development bank before or after the commencement of this Act shall have priority over loans of the State Government under the Land Improvement Loans Act, 1883 or the Agriculturists' Loans Act, 1884 granted after the execution of the mortgage and over all other registered or unregistered transfers effected on any account.