Section 11B in The Punjab Co-operative Land Mortgage Banks Act, 1957
11B. Landowner to become member of Mortgage Bank.
(1)As soon as the first instalment of loan is disbursed, the landowner on whose behalf the loan is disbursed shall be deemed to have become member of the Mortgage Bank which advanced the loan and the land of such landowner specified in the scheme shall stand mortgaged with the Bank by way of simple mortgage as security for the recovery of the loan and interest thereon. The copy of the scheme forwarded to the bank by the department shall constitute the title deed for the aforesaid mortgage.(2)The Mortgage Bank will be competent to charge one rupee as admission fee and ten rupees as share money from each person who becomes a member by virtue of the provisions of the preceding sub-section and such an amount shall be deemed to be a part of the loan.(3)The Government may guarantee in such manner as it thinks fit the repayment of the principal and interest of any loan proposed to be advanced by the Bank under section 11-A.
