Section 12A in Himachal Pradesh Co-operative Agriculture and Rural Development Banks Act, 1979
12A. [ Applicant for loan from the Agriculture and Rural Development Bank to furnish declaration. [Section 12-A, added vide H.P. Act No. 16 of 1987 w.e.f. 16-11-1987.]
(1)Every person who applies for a loan from the Agriculture and Rural Development Bank shall make a declaration in the prescribed form before an officer specified by the Registrar in this behalf that the movable or immovable property on which the gehan or mortgage or hypothecation is created as security for the loan is free from encumbrances, that he is in actual possession thereof and that he has the right to create the gehan or mortgage or hypothecation, as the case may be, thereon in favour of the Agriculture and Rural Development Bank.(2)Notwithstanding anything contained in any law for the time being in force, where a declaration under sub-section (1) in respect of any movable or immovable property is false or defective, the Agriculture and Rural Development Bank shall, subject to the provisions of section 38, have a first charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the gehan created or mortgage or hypothecation executed by the applicant as security for the loan granted to him by the Agriculture and Rural Development Bank.(3)Any person, who makes a false declaration under sub-section (1) or makes any statement which is false in any such declaration shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.(4)The amount of loan that may be sanctioned on the basis of a declaration made under sub-section (1) shall be subject to such limit as may be prescribed.]
