Section 40 in The Assam State Co-operative Agriculture and Rural Development Bank Limited
40.
The land mortgaged to the Bank as security under bye-law 39 shall have no prior encumbrance, save the mortgage or mortgages to be redeemed by the loan given by the Bank. An encumbrance in favour of the Bank shall not be deemed to be an encumbrance within the meaning of this bye-law.The Board may permit an individual member to alienate him mortgage property and to transfer his loan to a person who is a member of the Bank or to one whom the Board is willing to admit as a member, provided the transferee pays the entire arrear dues up-to-date, if any, and agrees to execute the necessary bonds and binds himself to pay the further instalments regularly. It shall be open to the Bank for reason to be recorded in writing while accepting the transfer and admitting the transferee as a member, to decline to exonerate the transferrer mortgagor from liability to the debt under the mortgage deed executed by him.Any member who desires to alienate any portion of his mortgaged property shall obtain the previous permission of the Board. It shall be competent for the Board to refuse alienation or grant permission. In the event of failure by the member to comply with the terms and conditions aforesaid, the Board may recover the whole loan amount without reference to the period for which the loan was originally granted. An encumbrance in favour of the Bank shall not be deemed to be an encumbrance within the meaning of this bye-laws.
