Section 6 in The Assam Displaced Persons (Rehabilitation Loans) Act, 1951
6. Security for loans.
(1)All assets purchased with or created from the loan shall be deemed to be mortgaged or hypothecated, as the case may be, to Government for the repayment of the loan with interest due thereon and the amount of the loan and the interest thereon shall be in the first charge on such assets.(2)Subject to sub-section (1) above, the borrower shall not without the prior approval of the sanctioning authority mortgage, convey or otherwise transfer any of his interests in the whole or any part of the assets purchased with or created from the loan:Provided that nothing in this section shall affect the borrower's right to sell such articles of his stock-in-trade as are meant for sale to customers in the normal course of business.
