Vidhi Codex

The Himachal Pradesh Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1972

The Himachal Pradesh Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1972

Finance197231 sections5 chapters

This legislation facilitates agricultural financing across Himachal Pradesh by empowering farmers, tenants, and land lessees to pledge land, crops, and movable assets as security for loans from banks and financial institutions. It overrides statutory restrictions on land alienation and debt relief to simplify credit access for rural borrowers. The law establishes priority of bank charges over unsecured private claims, streamlines mortgage registration in revenue records, and provides expedited recovery processes for defaulted loans. Additionally, it allows banks to directly finance and inspect cooperative societies. By making institutional credit more secure and accessible, the Act fosters agricultural growth and rural development throughout the state.

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Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II RIGHT OF AGRICULTURISTS TO ALIENATE LAND/INTERESTS IN LAND IN FAVOUR OF BANKS →

  1. 3Removal of restrictions on alienation.
  2. 4State Government may by notification vest agriculturists not having alienable right with such rights.
  3. 5Charge on crop and other movable property in favour of a bank.
  4. 6Creation of charge on land in favour of a bank by declaration.

Chapter III CHARGES AND MORTGAGES IN FAVOUR OF BANKS AND THEIR PRIORITIES →

  1. 7Removal of disability in creation of charges and mortgages.
  2. 8Priority of charges and mortgages in favour of the Government, a bank and a co-operative society.
  3. 9Registration of charge and mortgage in favour of banks.
  4. 10Noting of charge or mortgage created in favour of a bank, in the record-of-rights.
  5. 11Restrictions on creation of tenancy by an agriculturist borrower.
  6. 12Removal of bar to attachment and sale by process of court.
  7. 13Recovery of dues of a bank through a prescribed authority.
  8. 14Right of a bank to acquire and dispose of immovable property.
  9. 15Exemption to banks from restrictions on acquisition of land in excess of ceiling.

Chapter V FINANCING OF CO-OPERATIVE SOCIETIES BY BANKS →

  1. 16Bank eligible to become member of a co-operative society.
  2. 17Power of co-operative societies to borrow from banks.
  3. 18Inspection of books of a co-operative society by a bank.
  4. 19Disputes between a bank and a co-operative society.
  5. 20Settlement of disputes.
  6. 21Procedure for hearing of disputes.
  7. 22Decision of Registrar or his nominee or board of nominee.
  8. 23Recovery of money awarded.
  9. 24Powers of a bank to proceed against defaulting members of a co-operative society.
  10. 25Audit, inspection and inquiry reports of societies to be available to banks.

Chapter VI MISCELLANEOUS →

  1. 26Exemption from legislations relating to money lending and agriculturists' debt relief.
  2. 27Mortgages executed by managers of joint Hindu families.
  3. 28Modified application of section 8 of Act No. XXXII of 1956.
  4. 29Power of State Government to make rules.

PDF: pending for this language.