Section 41 in The Tamil Nadu Co-Operative Societies Act, 1983
41. Charge of immovable property of members borrowing loans from certain registered societies.
- Notwithstanding anything contained in this Act or in any other law for the time being in force -(i)a member who makes an application for a loan to a registered society other than an [Agriculture and Rural] [Substituted by section 5 of the Tamil Nadu Co-operative Societies (Amendment) Act, 1999 (Tamil Nadu Act 50 of 1999) which came into force on the 15th December 1999.] Development Bank of which the majority of the members are agriculturists, shall, if he owns land or other immovable property, make a declaration in the form prescribed, if any, that he thereby creates a charge upon such land or other immovable property or such portion thereof as may be specified in the declaration, in respect of the loan, which the society may make to the member on the application and future loans, if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;(ii)a declaration made under clause (f) may be varied or cancelled at any time by the member with the previous written permission of the society in favour of which such charge has been created;(iii)no land or other immovable property in respect of which declaration under clause (i) has been made and no part of, nor any interest in, such land or immovable property shall, without the consent of the society, be sold or otherwise transferred until the said declaration is cancelled; and any transaction made in contravention of this clause shall be null and void:Provided that it shall be lawful to a member to mortgage such land or other immovable property or any part thereof in favour of an [Agriculture and Rural] [Substituted by section 5 of the Tamil Nadu Co-operative Societies (Amendment) Act, 1999 (Tamil Nadu Act 50 of 1999) which came into force on the 15th December 1999.] Development Bank.(iv)the declaration made under clause (i) or any variation or cancellation thereof under clause (ii) shall be sent by registered post by the society to the Sub-Registrar having jurisdiction over the area in which the land or the other immovable property is situated;(v)on receipt of the declaration on variation or cancellation, the Sub-Registrar shall register such declaration or variation or cancellation and issue a copy thereof to the registered society;(vi)any declaration made under clause (i) or any variation or cancellation thereof under clause (ii), which has not been registered under clause (v) shall be null and void.(vii)the declaration and the variation, if any, upon registration under clause (v) shall be deemed to create an interest in the property to which the declaration relates and shall constitute notice to every person dealing with the said property.
