Section 7(2) in The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979
(2)Where different charges of mortgages on the same land or interest therein, are created an agriculturist in favour of Government, one or more co-operative societies or one or more banks, any such charges or mortgages created as security for financial assistance given by Government, co-operative society or bank by way of term loan for development purposes, shall have priority over any other charges or mortgages created in favour of Government co-operative societies or banks, provided a notice of such financial assistance by way of term loan for development purposes has been given to such Government co-operative society or bank, provided a notice of such financial assistance by way of term loan for development purposes has been given to such Government cooperative society or bank, and that Government co-operative society or bank has consented to such financial assistance being given; and where more than one such charge or mortgage is created as security for financial assistance by way of term loan for development purposes, the charges or mortgages by way of security for the term loan for development purposes shall rank in priority inter-se in accordance with the dates of their creation.Explanation. - For the purposes of this section, the expression "term loan for development purpose" means financial assistance which generally results in improvement of agriculture or building up of tangible assets in agriculture; but does not include financial assistance for working capital expenses, seasonal agricultural operations or marketing crops.
