Section 39 in Rajasthan Co-operative Societies Act, 1965
39. Charge on immovable property of members borrowing loans from certain societies.
- Notwithstanding anything contained in this Act or in any other law for the time being force -(a)any person who makes an application to a society of which he is a member for a loan, other than a short term loan as defined in section 84 shall, make a declaration in the prescribed form which shall state that the applicant thereby creates a charge on the immovable property owned by him and specified therein for the payment of the amount of the loan which the society may make to the member in pursuance of the application and for all future advances, if any, required by him from time to time which the society may make to him as such member, subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances.(b)any person who has borrowed a loan, other than a short term loan as defined in section 84 from a society of which he is member before the date of the coming into force of this Act shall, as soon as possible, make a declaration in the form and to the effect referred to in clause (a) and no such person shall, unless and until he has made such declaration, be entitled to exercise any right as a member of the society;(c)a declaration made under clause (a) or clause (b) may be varied at any time by a member with the consent of the society in favour of which such charge is created and shall, subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue or of a landholder in respect of rent or any money recoverable as rent, have the same effect as if the property covered by the declaration were mortgaged to the society for the repayment of the loan and advances therein specified and, notwithstanding anything contained in the Indian Registration Act, 1908 (Central Act XVI of 1908) or in any other law for the time being in force, the registration of such declaration shall not be compulsory;(d)no member shall alienate the whole or any part of the immovable property specified in the declaration made under clause (a) or clause (b) until the whole amount borrowed by the member together with interest thereon is paid in full and any such alienation shall be void;(e)subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue or to the claims of Land Development Bank in respect of its dues, there shall be a first charge in favour of the society on the immovable Property specified in the declaration made under clause (a) or clause (b) for and to the extent of the dues owing by him on account of the loans and advances; and(f)any entry relating to a charge created by a declaration under clause (a) or clause (b) on the agricultural holding of the person making the declaration shall upon an application made, at any time after the declaration by such person or by the society in whose favour the charge is created, to the Tehsildar either direct or through the village Patwarai or Land Record Inspector, be made in the annual registers maintained under Chapter VII of the Rajasthan Land Revenue Act, 1956 (Rajasthan Act 15 of 1956) in the manner provided for in that Chapter and the rules thereunder and for that purpose such application shall be deemed to be a report under Section 133 of that Act.Explanation. - For the purpose of this section, a society shall mean -(a)any credit society the majority of the members of which are agriculturists and the the primary object of which is to obtain credit for its members, or(b)any society or class of societies specified in this behalf by the Government by a general or special order.
