Mode of dealing with applications for loans

(1) The Cooperative Land Development Bank shall, with the approval of the Registrar, lay down procedure governing the loan policies and procedures for receipt and disposal of applications for loans. (2) When an application for a loan is made for any of the purposes mentioned in section 115, an enquiry shall be conducted by an officer of the Co-operative Land Development Bank authorised for the purpose in such manner as may be laid down in the procedure made under sub-section (1). That officer shall record all objections from such persons as may be interested in the land proposed to be mortgaged as security or to the loan. (3) The authorized officer shall record every objection submitted under sub-section (2) above in writing in a manner which may be prescribed by the Co-operative Land Development Bank for the purpose. Thereafter the authorised officer shall conduct local enquiry and then send the application with his report in a form which may be prescribed by the Cooperative Land Development Bank for consideration of the application by the said Bank. (4) Subject to such procedure as may be framed under sub-section (1), the Co-operative Land Development Bank shall consider such application along with the report of the authorised officer for the purpose of making loans under this Chapter. (5) The Bank on being satisfied as to genuineness of the purpose and correctness and adequacy of the securities and properties to be mortgaged or hypothecated to it, shall dispose of the application for loan as expeditiously as possible.