Section 8 in The Orissa Intensive Cultivation Scheme Loans Rules, 1951
8. Security.
(1)When the applicant possesses a transferable interest in immovable property of value sufficient to secure the whole amount that may become payable in respect of the loan he shall ordinarily be required to mortgage such interest or a sufficient portion thereof to Government as security for repayment of that amount, but the officer granting the loan may instead require or accept other good security.(2)When the applicant does not possess a transferable interest in immovable property, sufficient for the purposes of security, he shall be called upon to procure some person or persons possessing a transferable interest in immovable property of value sufficient to secure the whole amount, to become his surety or sureties for the repayment of his loan with costs, if any, for recovery of such loan and if necessary, with interest in case of default.(3)When the applicants are a body of five or more co-villagers who bind themselves jointly and severally to Government for the payment of the amount, their personal security may be accepted, provided they execute a bond in Form 'E' annexed to these rules :Provided that in the Case of a Co-operative Farming Society, it may incur loan against the general assets of the society on execution of the bond in Form E-1 annexed to these rules.(4)A loan shall not ordinarily be refused to an applicant who is in arrear for land revenue or for a previous loan if the security offered is otherwise satisfactory.Explanation. - (i) Lands which are not transferable without the landlord's consent shall not ordinarily be accepted as security.(ii)If the consent in writing of all the landlords in Form 'H' annexed hereto has been previously obtained to the sale of land in the case of default, there may be no objection to accepting such land as security and such consent shall be deposited in the record room with the record of the case.(5)No personal security without any landed security shall be entertained.
