Section 126 in West Bengal Co-operative Societies Act, 2006
126. Power of Co-operative bank or the Co-operative societies etc., if mortgaged property is destroyed or security becomes insufficient.
(1)If any property mortgaged under this chapter is destroyed wholly or in part of, if the security for any loan is found to be insufficient on valuation in the manner provided in the rules or the by-laws, the mortgagor shall be required on the service of a notice on him in the prescribed manner, to furnish such further security, and within such period, as may be specified in the notice.(2)If the mortgagor fails to furnish such further security within specified period, the entire amount of the loan together with the interest accrued thereon shall fall due at once and the Co-operative agriculture and rural development bank or the State Co-operative and rural development bank or the Central Co-operative bank or the apex housing society or the housing co-operative society or the financing bank or the primary agricultural credit co-operative society shall, subject to the rules, be entitled to take action for recovery thereof under this Chapter.Explanation-For the purpose of this section a security shall be deemed to be insufficient if the value of the mortgaged property does not exceed the amount for the time being due on the mortgage by such proportion as may be specified in the rules or the by-laws.
