Section 88 in Jammu and Kashmir Co-Operative Societies Act, 1989
88. Mode of dealing with application for loans.
(1)When an application for loan is made for any of the purposes mentioned in section 80 a public notice shall be given of the application in such manner as may be prescribed calling upon all persons interested to present their objections to the loan, if any, in person at a time and place fixed therein. The Government or the Bank may, from time to time, prescribe the person by whom such public notice shall be given and the manner in which the objections shall be heard and disposed of.(2)The prescribed officer shall consider every objections submitted under sub-section (1) and make an order in writing either upholding or over ruling it:Provided that when the question raised by an objection is in the opinion of the officer one of such nature that it cannot be satisfactorily decided except by a civil court, he shall postpone the proceedings on the application until the question has been so decided.(3)A notice under sub-section (1) published in the manner prescribed shall, for the purpose of this Act, be deemed to be proper notice to all persons having or claiming interest in the land to be improved or ordered as security for the loan.(4)Subject to such rules as may be framed by the Board and approved by the Registrar, the Agriculture and Rural Development Banks or the State Agriculture and Rural Development Bank, shall consider such applications after due enquiry for the purpose of making loans under this Chapter.(5)Every person who applies for a loan from Primary Bank shall make a declaration in the prescribed form before an officer, specified by the Registrar in this behalf, that the movable or immovable property on which the mortgage or hypothecation or charge is created as security for the loan is free from encumbrances, that be in actual possession thereof and that he has right to create the mortgage or hypothecation, as the case may be, thereon in favour of the Primary Bank.(6)Notwithstanding anything contained in any law for the time being in force where a declaration under sub-section (5) in respect of any movable or immovable property is false or defective, the Agriculture and Rural Development Bank shall, subject to the provisions of section 91 have a first charge on all other movable and immovable properties of the applicant and all such properties shall be deemed to have been included in the mortgage or hypothecation or charge executed by the applicant as security for the loan granted to him by,the Primary Bank.(7)Any person who makes a false deClaration wider sub-section (5) or make the statement which is false in any, such declaration shall ,be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees or with both.(8)The amount of loan that may be sanctioned on the basis of declaration made under sub-section (5) shall be subject to such limit as may be determined by the Bank.
