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State of Assam - Section

Section 39 in The Assam State Co-operative Agriculture and Rural Development Bank Limited

39. Use of funds.

- The fund of the bank shall be primarily used for the purpose of granting loan to Co-operative Societies and individuals who are eligible for memberships of the Bank in conformity with the objects mentioned under Bye-law No. 5.
39(a) Deleted by Notification No. CF/7/2003/95 dated 2nd August, 2004
39(a)(i) Deleted
39(a)(ii) Deleted
39(a)(iii) Deleted
(b)The total amount of loan due from the individual member of the Bank, unless secured by Government guarantee, shall not any time exceed-
(i)Twenty times of the paid up value of the share held by such member; and ;
(ii)Fifty per cent of the estimated market Value of the lands and property secured by one or more mortgages. It shall be competent to the Board to raise the above loan limit on such collateral security as the Board may decide from time to time. Further the loan given to an individual member of the Bank on the mortgage of land shall not exceed ¾ th of the estimated net income from that land during the period of the loan.
In exceptional cases, however, when the landed property offered as security by an individual member is not sufficient for the loan applied for by him, house property commending rental value may be accepted, provided that at least 75 percent of he loan amount is secured on land where the house property is situated in municipalities or major panchayats and at least 85 per cent of the loan is secured on land where the house property is situated in villages.Where house property is accepted as security along with land, the loan amount secured on house shall not exceed the following limits-
PC of the value of house that can be advanced Maximum loan that may be advanced
1. House in Municipalities 50 PC 3,000/-
2. House in major Panchayat 40 PC 2,000/-
3. House in village 30 PC 1,000/-
If any member desires to offer as substituted security, fresh properties in place of any portion of the original security alientated by him with the permission of the Bank, he may be permitted to do so, provided that the terms and conditions as may be laid down by the Board are satisfied by such member.Market value of land shall be assessed with reference to sale of land in the locality within a period of 5 years. If steep fluctuation of price of land is noticed during this period the Board shall determine the proper market price.