Grant of financial assistance by financial institutes.

(1) Financial assistance will be granted by a financial institution to a Kisan on production of Kisan Pass Book. However, production of Kisan Pass Book will not be necessary for crop loans advanced by co-operative societies. (2) A financial institution granting any financial assistance to the holder of the Kisan Pass Book shall incorporate in the Kisan Pass Book the factor of such financial assistance and where such financial assistance has been given on the security of any holding the financial institution shall also make an entry against the holding on the security of which the financial assistance has been granted by it, and the entry so made shall have the effect of creating a charge in favor of the financial institution on the holding against which the entry has been made and the holder of the Kisan Pass Book shall be debarred from alienating the said holding until the outstanding amount of the financial assistance granted by the financial institution has been repaid together with interest due thereon: Provided that where any charge on any land or interest therein was created by a Kisan in favor of a financial institution before the commencement of this Act, it shall not debar him from creating, after such commencement, a subsequent charge on such land or interest therein in favour of a financial institution as security for any financial assistance given to him by such institution: Provided further that the financial institution which sanctions the first loan after the issue of the Kisan Pass Book shall ascertain and verify within fifteen days all outstanding loans (except crop loan) advanced by co-operative societies and encumbrances created by the Kisan, as the case may be, by procuring an affidavit to that effect and shall enter and authenticate the details thereof in the Kisan Pass Book. (3) The financial institution shall endorse a copy of the relevant entries incorporated in the Kisan Pass Book to the revenue officer as well as the sub Registrar within the local limits of whose jurisdiction the whole or any part of the property which has been so charged is situated and on receipt of the same the revenue officer shall cause necessary entry to be made in the record of rights maintained under the Punjab Land Revenue Act, 1887.