Chapter I Chapter I

(1) This Act may be called the Kerala Co-operative Land Mortgage Banks Act, 1960. (2) It extends to the whole of the State of Kerala. (3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

In this Act, unless the context otherwise requires,— (a) "Board" means the Board of Directors of the Central Land Mortgage Bank; (b) "Central Mortgage Bank" means the Kerala Co-operative Central Land Mortgage Bank, Limited; (c) "committee" in relation to a primary mortgage bank, means the Board of Directors or Board of Management or the Panchayat or the Committee of management or the governing body to whom the management of its affairs is entrusted; (d) "co-operative society" means a co-operative society registered or deemed to be registered under the Travancore-Cochin Co-operative Societies Act, 1951 or the Madras Co-operative Societies Act, 1932; (e) "Malabar" means the Malabar district referred to in sub-section (2) of section 5 of the States Reorganisation Act, 1956 (37 of 1956); (f) "notified order" means an order notified in the Gazette; (g) "prescribed" means prescribed by rules made by the Government under this Act; (h) "primary mortgage bank" means a co-operative land mortgage bank registered or deemed to be registered under the Travancore-Cochin Co-operative Societies Act, 1951, or the Madras Co-operative Societies Act, 1932, and admitted as a member of the Central Mortgage Bank; (i) "Registrar" means the person appointed by the Government to be the Registrar of Co-operative Societies for the State; (j) "State" means the State of Kerala; (k) "Trustee" means the Trustee referred to in section 5.

Notwithstanding anything contained in the Travancore-Cochin Co-operative Societies Act, 1951, it shall be lawful for the Central Land Mortgage Bank, to admit as its member a co-operative land mortgage bank registered or deemed to be registered under the Madras Co-operative Societies Act, 1932; and any such admission made before the commencement of this Act shall be deemed to have been lawfully made.

(1) (a) With the previous sanction of the Trustee, the Board may issue debentures of one or more denominations for such period as it may deem expedient on the security of the mortgages taken by the Central Mortgage Bank and its other assets and mortgages transferred or deemed under the provisions of section 23 to have been transferred by the primary mortgage banks to the Central Mortgage Bank. (b) Such debentures may contain a term fixing a period not exceeding twenty years from the date of issue during which they shall be irredeemable or reserving to the Board the right to call in, at any time, any of the debentures in advance of the date fixed for redemption after giving to the debenture-holder concerned not less than three months' notice in writing. (2) The total amount due on the debentures issued by the Board and outstanding, at any time, shall not exceed the aggregate of the amounts due on the mortgages and other assets referred to in clause (a) of sub-section (1) and the amounts paid thereunder and remaining in the hands of the Board or of the Trustee at such time.

(1) The principal of and the interest on the debentures issued under section 4 to such maximum amount as may be fixed by the Government and subject to such conditions as they may think fit to impose, shall, subject to the provisions of sub-section (3), carry the guarantee of the Government. (2) The Government may, after consulting the State Legislative Assembly, increase the maximum amount of any guarantee given by them. (3) The Government may, after consulting the Board and the Trustee,— (a) by notification in the Gazette, and (b) by notice for not less than 14 days in such of the principal newspapers in the State and in other States in India, as the Government may select in this behalf, discontinue any guarantee given by them or restrict the maximum amount thereof or modify the conditions subject to which it is given, with effect from a specified date, not being earlier than six months from the date of publication of the notification in the Gazette. In cases where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, the notification and notice aforesaid shall set forth, with sufficient clearness, the scope and effect of the restriction or modification. Explanation.—The withdrawal, restriction or modification of any guarantee under this sub-section shall not affect, in any way, the guarantee carried by any debentures issued prior to the date on which such withdrawal, restriction or modification takes effect.

The Board may, subject to the approval of the Trustee, make regulations not inconsistent with the provisions of this Chapter,- (i) for fixing the period of debentures and the rate of interest payable thereon; (ii) for calling in debentures after giving notice to debenture holders; (iii) for the issue of new debentures in place of debentures damaged or destroyed; (iv) for converting one class of debentures into another class of debentures bearing a different rate of interest; and (v) generally for carrying out the provisions of this Chapter.