Section 36 in The M.P. Shakari Krishi Aur Gramin Vikas Bank Adhiniyam 1999
36. Powers of State Development Rank or District Development Hank in case of insufficient security or misutilisation of loan.
(1)Where any property offered as security to the State Development Bank or a District Development Bank is rendered insufficient the whole of the loan shall he deemed to have fallen due at once and the State Development Bank or the District Development Bank, as the case may be, shall he entitled to take action under Section 23 or Section 26 for its recovery ;Provided that no action shall he taken unless the loanee has been given reasonable opportunity of furnishing further security sufficient to cover the gap or of repaying such portion of the loan as may be determined by the State Development Bank or a District Development Bank and the loanee has failed to avail of such opportunity.Explanation :- A security shall become insufficient within the meaning of this section if the value of the property falls below the amount for the time being due to the State Development Bank or the District Development Bank by such proportion as may be specified in the regulations of the State Development Bank or the bye-laws of the District Development Bank, as the case may be.(2)In case of misutilisation of loan, the whole of the loan amount shall be deemed to have fallen due at once and the State Development Bank or a District Development Bank, as the case may be, shall be entitled to take action under Section 23 or Section 26 for its recovery.
