Section 16 in Executive Instructions Issued by the Board of Revenue, Orissa under the Orissa Fertilisers Loans Rules, 1965
16. Verification of encumbrances.
- For the proper security of the loan it is of utmost importance that the sanctioning authority should be satisfied that the transferable interest in immovable property offered as security for the loan is either unencumbered or, if encumbered, the value of the land after taking into account the existing encumbrances is sufficient to serve as security for the loan advanced. Ordinarily enquiry to ascertain the existence of encumbrances shall be made in the registration Office by the Officer conducting the enquiry and no searching fee shall be charged for the purpose. The search in Registration Office may be made to find out if any encumbrance has been created during twelve years preceding the date of application for the loan or during such longer period as the circumstances of each case may demand. Responsibility rests squarely on the Enquiring officer and on the officer sanctioning the to ascertain if the land offered as security is free from encumbrances or, if it is already encumbered, the extent thereof.
