BACOMP Act 8अध्याय III · Charges and mortgages in favour of Banks and their priorities

धारा 8 · Priority of charges and mortgages in favour of Government, a bank and a co-operative society

(1)

Notwithstanding anything to the contrary contained in the Bihar and Orissa Co-operative Societies Act, 1935 (B. & O. Act VI of 1935) or any other law for the time being in force-

(a)

Any charge or mortgage created on any land or interest therein in favour of Government shall have priority over any other charge or mortgage that might have been created on such land or interest therein by an agriculturist in favour of person or a bank or a co-operative society irrespective of the dates of creation of charges or mortgages.

(b)

Where charges or mortgages on any land or interest therein are created in favour of both a co-operative society and a bank priority of such charges or mortgages shall, after commencement of this Act, be determined in accordance with the dates of creation of the charges or mortgages.

(c)

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 over such land or interest in favour of any person other than the Government, a co-operative society or any other bank, prior to the date on which the charge or mortgage was created in favour of the bank.

(d)

Where different charges or mortgages over the same land or interest therein have been created by an agriculturist in favour of a co-operative society or a bank or more than one bank, any such charge or mortgage created as security for financial assistance given by the co-operative society or a bank or banks by way of term loan for development purposes shall have priority over other charges or mortgage created in favour of a co-operative society or any of the banks, provided notice of such financial assistance by way of term loan for development purposes has been given to such co-operative society or bank and such co-operative society or bank has concurred in such financial assistance and where more than one such charge or mortgage is created as security for financial assistance given by way of term loan, the charges or mortgage by way of security for term loan for development purposes shall rank for priority in accordance with the dates of their creation.

Explanation. - For purposes of this section term "loan for development purposes" shall mean financial assistance which could generally lead to improvement of agriculture or building up of assets in agriculture but shall not include financial assistance for meeting working capital expenses, seasonal agricultural operations and marketing of crops.

(2)

Nothing in this section shall apply to borrowing only from one or more cooperative societies or land development banks.

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