Charge on crop and other moveable property in favour of bank.

(1) It shall be lawful for an agriculturist to create a charge on the moveable property owned by him or on the crops raised by him, standing or otherwise or other produce from land cultivated by him, to the extent of his interest therein, in favour of a bank, to secure financial assistance from that bank, notwithstanding that he may not be the owner of the land on and from which the crop is raised. (2) Notwithstanding anything to the contrary contained in the Punjab Co-operative Societies Act, 1961, or any other law for the time being in force, no charge in respect of financial assistance extended by a co-operative society to an agriculturist shall have priority over a charge on the crops raised by him, standing or otherwise, or any other moveable property in respect of any financial assistance given to him by a bank: Provided that the financial assistance made by the bank is— (a) prior in point of time to that of the financial assistance extended by the co-operative society; and (b) on a certificate, in the form prescribed, from the co-operative society or co-operative societies in the area where the agriculturist resides. (3) A co-operative society in the area where the agriculturist holds land shall on demand by him issue a certificate referred to in sub-section (2). (4) The Registrar of Co-operative Societies, or any other person appointed by him in this behalf, shall prepare a list of co-operative societies registered under the Punjab Co-operative Societies Act, 1961, and publish the same in the Official Gazette after such interval as may be prescribed. (5) A bank may distrain and sell through an official of the State Government, designated in this behalf by the State Government, the crop or other produce or other moveables charged, to that bank to the extent of the agriculturist's interest therein and appropriate the proceeds of such sale towards all moneys due to the bank from that agriculturist.