The Maharashtra Cooperative Societies Act 1960

1 Chapter: XI - AGRICULTURE AND RURAL DEVELOPMENT BANKS

Section 113 to 126

Footnote:
1. These words were substituted for the words "a Land Development Banks" by Mah. 10 of 1988, s. 19.

Section 113 - Appointment, powers and functions of Trustee

(1) The Registrar, or any other person appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it.

(2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed and shall have perpetual succession and a common seal, and in hi s corporate name may sue and be sued.

(3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the 1 [State Agriculture Development and Rural Bank] and the Trustee, as modified from time to time by mutual agreement between the 1 [State Agriculture and Rural Development Bank] and the Trustee.

Footnote:
1. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988, s. 19.

Section 114 - Issue of debentures

(1) With the previous sanction of the State Government and the Trustee, and subject to such terms and conditions as the State Government may impose, the 1 [State Agriculture and Rural Development Bank] in the discharge of its function as 1 [an Agriculture and Rural Development Bank] may issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient on the security of mortgages 2 [instruments of hypothecation, guarantee, pledge or charge created in favour of the Bank, or mortgages, instruments of hypothecation, guarantee, pledge or charge to be acquired or partly on mortgages or on any of the aforesaid instruments] held and partly to be acquired, and properties and other assets of the 1 [State Agriculture and Rural Development Bank].

(2) Every debenture may contain a term fixing a period not exceeding thirty years from the date of issue during which it shall be redeemable, or reserving to the committee the right to redeem at any time in advance of the date fixed for debenture not less than three months' notice in writing.

(3) The total amount due on debentures issued by the 1 [State Agriculture and Rural Development Bank] and outstanding at any time, shall not exceed--
(a) where debentures are issued against mortgages 4 [instruments of hypothecation, guarantees, pledge or charge] held, the aggregate of--
(i) the amounts due on the mortgages;- 5 [and any or all of the aforesaid instruments].

(ii) the value of the properties and other assets transferred or deemed to have been transferred under section 121 by the 1 [Primary Agriculture and Rural Development Banks] to the 6 [State Agricultural and Rural Development Bank] and subsisting as such time; and

(iii) The amounts paid under the mortgages 7 [and the other instruments] aforesaid and the unsecured amounts remaining in the hands of the 1 [State Agriculture and Rural Development Bank] or the Trustee at the time;

(b) Where debentures are issued otherwise than on mortgages 8 [or the instruments aforesaid) held, the total amount as calculated under clause (a) increased by such portion of the amount obtained on the debentures as is not covered by a mortgage, 9 [instruments of hypothecation, guarantee, pledge or charge.].

Footnote:
1. These words were sub stituted for the words "State Land Development Bank" and "a Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were sub stituted for the words "or mortgages to be acquired or partly onmortgages" by Mah. 5 of 1990, s. 4(a).
3. These words were inserted, by Mah. 5 1990, s. 4(b)(i)(A).
4. These words were inserted, by Mah. 5 1990, s. 4 (b)(i)(B).
5. These words were inserted, by Mah. 5 1990, s. 4(b)(i)(C).
6. These words were inserted, by Mah. 5 1990, s. 4(b)(ii)(A).
7. These words were Inserted, by Mah. 5 1990, s. 4 (b)(ii)(B)

Section 115 - Guarantee by State Government

The principal of, and interest on the debentures issued under the preceding section, or any specified portion thereof, may carry the guarantee of the State Government and to such conditions as the State Government may think fit to impose.

Section 116 - Vesting of property in Trustee and Debenture holders charge on assets

Upon the issue of debentures, under the provisions of section 114, the mortgage properties and other assets 1 [including the properties covered by the instruments,] referred to in sub-section (3) of that section held by the 2 [State Agriculture and Rural Development Bank], shall vest in the Trustee, and the holders of debentures shall have a floating charge on all such 3 [mortgages, instruments and assets,] and on the amount paid under such mortgages, 4 [and such instruments] and remaining in the hands of the 2 [State Agriculture and Rural Development Bank] or of the Trustee.

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 5(a).
2. These words were sub stituted for the words "State Land Development Bank" and "Land Development Bank" by Mah. 10 of 1988, s. 19.
3. These words were sub stituted for the words "mortgages and assets" by Mah. 5 of 1990, s. 5(b).
4. These words were inserted by Mah. 5 of 1990, s. 5(c).

Section 117 - Powers of 1 [Agriculture and Rural Development Banks] to advance loans and to hold lands

Subject to the provisions of this Act and the rules made thereunder, it shall be competent for the 1 [Agriculture and Rural Development Banks] to advance loans for the purposes referred to in section 111, and hold lands 2 [or dwelling houses in rural area] the possession of which is transferred to them under the provisions of this Chapter.

Footnote:
1. These words were sub stituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were Inserted by Mah. 5 of 1990, s. 6.

Section 118 - [Deleted]

1 [* ***** * *]

Footnote:
1. Section 118 was deleted, by Mah. 10 of 1988, s. 24.

Section 119 - Order granting loan conclusive on certain matters

A written order by the 1 [Agriculture and Rural Development Bank], or persons or committee authorised under the by-laws of the Bank to make loans for all or any of the purposes specified in section 111, granting, either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein for the benefit of the land or for the productive purpose 2 [or for the purpose of dwelling house in rural area] specified therein, shall for the purposes of this Act be conclusive of the following matters that is to say,--
(a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, 2 [or for the purpose of dwelling house in rural area], as the case may be, within the meaning of section 111;

(b) that the person had at the date of the order a right to make such an improvement or incur expenditure for the productive purpose, 2 [or for the purpose of dwelling house in rural area], as the case may be; and

(c) that the improvement is one benefiting the land 3 [or such dwelling house] specified and productive purpose 2 [or for the purpose of dwelling house in rural area], concerns the land 4 [or such dwelling house] offered in security, or any part thereof as may be relevant.

Footnote:
1. These words were sub stituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were inserted by Mah. 5 of 1990, s. 7(a).
3. These words were sub stituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
4. These words were inserted by Mah. 5 of 1990, s. 7(b).

Section 120 - Priority of mortgage

(1) A mortgage executed in favour of an 1 [an Agriculture and Rural Development Bank], shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Loans Act 1883, or the Agriculturists' Loans Act, 1884, or under any other law for the time being force.

(2) Notwithstanding anything contained in the Bombay Tenancy and Agricultural Lands Act, 1948, or any other corresponding law for the time being in force, where a mortgage in favour of an 2 [an Agriculture and Rural Development Bank] is in respect of land in which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and hi s interest therein under such law be subject to the prior charge of the 1 [Agriculture and Rural Development Bank].

Footnote:
1. These words were substituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were substituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.

Section 121 - Mortgages 1 [and other instruments] executed in favour of 2 [an Agriculture and Rural Development Bank] to stand vested in 3 [State Agriculture and Rural Development Bank]

The mortgages 4 [instruments of hypothecation, guarantee, pledge or charge] executed in favour of, and all other assets transferred to 2 [an Agriculture and Rural Development Bank,] by the members thereof before or after the commencement of the Act, shall, with the date of such execution or transfer, be deemed to have been transferred by such 2 [an Agriculture and Rural Development Bank] to the 1 [State Agriculture and Rural Development Bank,] and shall vest in the State Agriculture and Rural Development Bank].


Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 8(b).
2. These words were sub stituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 8(a).
4. Section 122 was substituted for the original by Mah. 5 1990, s. 9.

1 Section 122 - Registration of mortgage lease etc. executed in favour of Agriculture and Rural Development Banks

Notwithstanding anything contained in the Indian Registration Act, 1908 it shall not be necessary to register mortgage, lease, hypothecation deed, loan, bond surety bond, guarantee deed, promissory note or loan agreement executed in favour of the Agriculture and Rural Development Bank, provided the Bank sends within such time and in such manner as may be prescribed a copy of such instrument to the concerned registering authority; and on receipt of the copy the registering authority shall file the same in the relevant books prescribed under the Registration Act, 1908:

Provided that, any such instrument executed in favour of the bank before the date of publication of the Maharashtra Co-operative Societies (Amendment) Act, 1989 in the Official Gazette may be sent to the concerned registering authority within the period of three months from such date.

Footnote:
1. Section 122 was substituted for the original by Mah. 5 1990, s. 9.

Section 123 - Mortgages and 1 [other instruments] not to be questioned on insolvency of mortgagors 2 [or executants]

Notwithstanding anything contained in the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage, 3 [or any other instruments supporting the loan] executed in favour of 4 [an Agriculture and Rural Development Banks] shall, not be called in question in any insolvency proceedings on the ground that it was executed in order to give the Bank a preference over other creditors of the mortgagor 5 [or of the executant of the instrument].

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 10(c)(i).
2. These words were inserted by Mah. 5 of 1990, s. 10(c)(ii).
3. These words were inserted by Mah. 5 of 1990, s. 10(a).
4. These words were substituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
5. These words were inserted by Mah. 5 of 1990, s. 10(b).

Section 124 - [Deleted]

1 [* * * * * * * ]

Footnote:
1. Section 124 was deleted by Mah. 10 of 1988, s. 25.

Section 125 - Mortgages 1 [and other instruments] executed by managers of joint Hindu families.

(1) Mortgages 2 [and other instruments] in respect of loans by 3 [an Agriculture and Rural Development Bank] or the 3 (State Agriculture and Rural Development Bank] either before or after the commencement of this Act, by the manager of Hindu joint family for the improvement of agricultural land or of the methods of cultivation or for financing any other means to raise the productivity of the land, or for the purchase of land, 4 [or for creation of new movable or immovable assets or for the purpose of acquisition, construction, rebuilding or repairing of a dwelling house in rural area] shall be binding on every member of such joint Hindu family notwithstanding any law to the contrary.

(2) In other cases, where a mortgage 5 [or other instrument] executed in favour of 4 [an Agriculture and Rural Development Bank] or 3 [State Agriculture and Rural Development Bank] either before or after the commencement of this Act, is called in question on the ground that it was executed by the manager of a Hindu joint family for purpose not binding on the members (whether such members have attained majority or not thereof the burden of proving the same shall, notwithstanding any law to the contrary, lie on the party alleging it

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 11(c).
2. These words were Inserted by Mah. 5 of 1990, s. 11(a)(i).
3. These words were substituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
4. These words were inserted by Mah. 5 of 1990, s. 11(a)(ii).
5. These words were inserted by Mah. 5 of 1990, s. 11(b).

Section 126 - Section 8 of Act XXXII of 1956 to apply to mortgages 1 [and other instruments] to 2 [an Agriculture and Rural Development Banks], subject to certain modification

Section 8 of the Hindu Minority and Guardianship Act, 1956,shall apply to mortgages 3 [and other instruments] in favour of 2 [an Agriculture and Rural Development Banks], subject to the modification that reference, to court therein shall be construed as reference to the Collector or his nominee and the appeal against the order of the Collector or his nominee shall lie to the Commissioner.

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 12.
2. These words were substituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 11(c).

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