Section 6(2) in The Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978
(2)Where different charges or mortgages over the same land or interest therein have been created by an agriculturists in favour of the State Government, a co-operative society or a bank or more than one bank, any such charge or mortgage created as security for financial assistance given by the State Government, Co-operative society or the bank or banks by way of term loans for development purposes shall have priority over the other charges or mortgages created in favour of the State Government, co-operative society or any of the banks, provided prior notice of any such financial assistance by way of term loan for development purposes had been given to the State Government, co-operative society or bank and the State Government, co-operative society or bank has concurred in such financial assistance, and where more than one such charge or mortgage is as security for financial assistance given by way of term loan, the charges or mortgages by way of security for term loan for development purposes will rank for priority in accordance with the dates of their creation.Explanation. - For the purposes of this section "term loan for development purposes" shall mean financial assistance which would generally lead to improvement of agriculture or building up of assets in agriculture but shall not include financial assistance for meeting working capital, expenses for seasonal agricultural operations and marketing of crops.
