Rights of agriculturists to create charge on crops and other movables in favour of banks

(1) It shall be lawful for an agriculturist to create a charge on the movable property owned by him or on the crops raised by him, standing or otherwise, or other produce from land cultivated by him, to the extent of his interest therein, in favour of a bank to secure financial assistance. (2) Notwithstanding anything to the contrary in the Orissa Co-operative Societies Act, 1962 or in any other law for the time being in force, in cases where the financial assistance given by a bank is prior in point of time to that of the financial assistance extended by a Co-operative Society, no charge in respect of such financial assistance extended by the Co-operative Society shall have priority over a charge on the crops raised by him, standing or otherwise, or on any other movable property in respect of any financial assistance given to him by a bank.