Legal Question in Banking Law in India
agriculture land as collateral as Primary Security for loan
Can a Bank take Agriculture land as collateral for any loan advanced by it? Request you to consider the Provisions of SARFEASI ACT, 2002.
5 Answers from Attorneys
Re: agriculture land as collateral as Primary Security for loan
Yes SARFEASI Act does not apply.
Re: agriculture land as collateral as Primary Security for loan
Provision of SARFEAST are not applicable to Agricultural Land, there is a specific emborgo on application of Securitization Act to Agricultural Land.
Re: agriculture land as collateral as Primary Security for loan
Bank can take mortgage of agricultural land for loan. The same is also liable to be sold in execution of the mortgage decree or Recovery Certificate where the debt is less than Rs.10lakhs or more as the case may be. However, the Bank cannot enforce its rights under the SARFAESI Act to sell the land in default of payment as the same is exempted under that Act.
Re: agriculture land as collateral as Primary Security for loan
yes,there is no bar.
Re: agriculture land as collateral as Primary Security for loan
No Sarfeasi Act does not apply.
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