Section 87(1) in Jammu and Kashmir Co-Operative Societies Act, 1989
(1)Subject to the provisions of this Act, the Agriculture and Rural Development Bank and the Primary Banks may advance loans to individuals and Institutions on the security of lands and other fixed assets or of asserts acquired by the loans borrowed which have been hypothecated to the Agriculture and Rural Development Bank, as the case may be:Provided that the Agriculture and Rural Development Bank or the Primary Banks may, for such purposes and for such periods as may be specified by the Government by special or general order, advance loans without such security of land but on the specific guarantee of the Government for the repayment of the principal and payment of interest thereon.
