Section 8(1) in Jammu and Kashmir Alienation of Land Act, SVT. 1995 (1938 A.D)
(1)If a member of an agricultural class mortgages his land and the mortgagee is not a member of an agricultural class, the mortgage shall be made in one of the following forms only:(a)in the form of a usufructuary mortgage, by which the mortgagor delivers possession of the land to the mortgagee and authorizes him to retain such possession and to receive the rents and profits of the land in lieu of interest and towards payment of the principal, on condition that after the expiry of term agreed on or if no term is agreed on, or if the term agreed on exceeds twenty-one years, on the expiry of twenty-one years from the date on which the possession of the land was transferred, the land shall be re-delivered to the mortgagor; or(b)in the form of a mortgage without possession subject to the condition that, if the mortgagor fails to pay principal and interest, according to his contract, the mortgagee may apply to the [Deputy Commissioner] [Substituted by Act III of Samvat 2008 for "Wazir-i-Wazarat".] to place him in possession for such term, not exceeding twenty-one years, as the [Deputy Commissioner] [Substituted by Act III of Samvat 2008 for "Wazir-i-Wazarat".] may consider to be equitable, the mortgage to be treated as usufructuary mortgage for the term of the mortgagee's possession and for such sum as may be due to the mortgagee on account of the balance of principal due and of interest due not exceeding the amount claimable as simple, interest at such rate and for such period as the [Deputy Commissioner] [ Substituted by Act III of Samvat 2008 for "Wazir-i-Wazarat".] thinks reasonable; or(c)in the form of a written usufructuary mortgage by which the mortgagor recognises the mortgagee as a landlord and himself remains in cultivating occupancy of the land as a tenant subject to the payment of rent at such rate as may be agreed upon not exceeding sixteen arenas per rupee of the amount of the land revenue in addition to the amount of the land revenue on the tenancy and the rates and cesses, chargeable thereon and for such term as may be agreed on, the mortgagor having no right to alienate his right of cultivating occupancy and the mortgagee having no right to eject the mortgagor except on the grounds mentioned in section 44 of the Jammu and Kashmir Tenancy Act, 1980; or(d)in any other form which the Government may, by general or special order, permit to be used.
