Applicant for loan to make a declaration

(1) Every applicant for a loan to a Co-operative Agricultural and Rural Development Bank shall make a declaration in the form prescribed by the Co-operative Agricultural and Rural Development Bank before an officer authorised by the Registrar this behalf, on solemn affirmation that the land sought to be in mortgaged is free from all encumbrances and that the mortgagor is in possession thereof and has the right to create the mortgage. (2) The declaration made under Sub-Section (1) shall be conclusive, final and binding. (3) If at any time a declaration made under Sub-Section (1) is found to be false or defective, the Co-operative Agricultural and Rural Development Bank shall, subject to the provisions of Section 85, have a first charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the mortgage deed and the Development Bank may proceed against all such properties of the mortgagor under Section 91. Explanation – A charge created under Section 34 shall not constitute an encumbrance for the purposes of this Section and Section 83-A. (4) Only those applications which conform to the requirements of Sub-Section (1) shall, in accordance with the Rules made in that behalf, be taken into consideration by the bank.