Section 15 in Executive Instructions Issued by the Board of Revenue, Orissa under the Orissa Fertilisers Loans Rules, 1965
15. Security.
(1)According to Sub-rule (1) of Rule 12 a transferable interest in [immovable property] [For definition of 'immovable property', see Clause (a) of Rule 2. This definition is different from that given in the Indian Registration Act, 1908 (XVI of 1908), the General Clauses Act, 1897 (X of 1897) and the Orissa General Clauses Act, 1937 (Orissa Act 1 of 1937).] shall ordinarily be deemed to be adequate security. The following are the types of securities that can, under the rules, be accepted :(a)a transferable interest in immovable property to the extent specified in Sub-rule (1) of Rule 12; or(b)when the applicant does not possess any interest(i)collateral security of any person or persons possessing-a transferable interest in immovable property to the extent specified in Sub-rule (1) of Rule 12, and(ii)personal security of the applicant.(2)Special care should be taken to ensure that the value of the security is assessed with reference to the market value of similar lands with similar advantage in the vicinity. Over-valuation should be scrupulously guarded against and no loan should be sanctioned unless the officer sanctioning it is satisfied as the adequacy of the security offered.(3)In case where lands containing trees and plantations are offered as security, the officer granting the loan should, in valuing them consider the possibility of plants of trees drying or decaying either naturally or through neglect before the complete discharge of the loan. The value of the security should be considered with reference to this contingency, it being kept in view that should the occasion arise, the loan dues could be fully satisfied by the sale of the lands offered as security despite fall in value on account of the deterioration of the trees or plantations. The officer competent to sanction the loan is personally responsible for proper valuation of the property offered as security.
