Section 46(b) in The Assam State Co-operative Agriculture and Rural Development Bank Limited
(b)Recall of Loan for Misapplication. - If a loan granted by the Bank has been applied by the loanees for a purpose other than that for which it was granted, the Bank shall be entitled to recall the whole or any part of the loan outstanding with interest without waiting for the expiry of the period for which the loan was granted. In such a case the loan account shall at once be closed without reference to the term for which the loan was granted and the borrower shall be charged interest at one percent per annum more than the rate of which the loan was issued from the late of closing the loan account to the date of recovery.
