Transfer of encumbrances.

General199929 sections5 chapters

Chapter III REHABILITATION OF AFFECTED PERSON

Statutory text

(1) Save as otherwise provided in any other law for the time being in force, where any land held by an affected person in an affected zone is burdened with a mortgage, debt, or other encumbrance, such as mortgage, debt, or other encumbrance shall be deemed to be transferred therefrom and attach itself to the land, granted to such affected person under section 16, and the mortgagee, creditor or, as the case may be, other encumbrancer shall exercise his rights, accordingly.
(2) If the land to which a mortgage, debt or other encumbrance is transferred under sub-section (1) is of less market value than the original land from which it is transferred, the mortgagee, creditor or, as the case may be, other encumbrancer shall, save as otherwise provided in any other law for the time being in force, be entitled to the payment of such compensation by the affected person owning the land as may be determined by the Collector.
(3) Notwithstanding anything contained in sub-sections (1) and (2) or in any agreement or in any law for the time being in force, a mortgagee, creditor or, as the case may be, an encumbrancer shall not, for any money advanced or any loan given under such mortgage, debt or encumbrance, whether before or after the commencement of this Act, recover in any manner, whatsoever, on account of interest, a sum greater than the amount of the principal of the money advanced or of the loan.

Study data processing for this section.

PDF: pending for this language.