Section 6 in The Bihar Displaced Persons (Rehabilitation Loans) Act, 1953
6. Security for loan.
(1)All assets acquired with the loan shall be deemed to be mortgaged or hypothecated, as the case may be, to the State Government for the repayment of the loan with interest due thereon and the amount of the loan and the interest thereon shall be the first charge on such assets.(2)Subject to the provisions of sub-section (1), the borrower shall not, without the prior approval of the sanctioning authority, mortgage, convey or otherwise transfer any of his interest in the whole or any part of the assets acquired with the loan, and any mortgage, conveyance of other transfer without such approval shall be void as against the State Government:Provided that nothing in this section shall affect the borrower's right to sell such articles of his stock-in-trade as are meant for sale to customers in the normal course of business.
