AGRICULTURAL DEVELOPMENT CREDIT AND CO-OPERATIVE BANK ACT - 1965 (ACT 286)

Section - 17 - Repayment of Loans in Full in Certain Circumstances

Notwithstanding any agreement to the contrary, the Bank may by giving notice, require any loan to be paid in full forthwith to the Bank in any of the following circumstances:-

(a) where the borrower has failed to comply with any term of the agreement under which the relevant loan, advance or credit has been granted;

(b) where in the opinion of the Bank false or misleading information on any material particular has been given in the application for the relevant loan, advance or credit or in any other statement or communication made in connection with any loan, advance or credit granted;

(c) where the property mortgaged, hypothecated or assigned to the Bank as security for the advance, loan or credit is not maintained, in proper condition, to the satisfaction of the Bank or its value as estimated by the Bank has depreciated by more than twenty per centum, and further security to the satisfaction of the Bank has not been given within the time specified by the Bank;

(d) where without the permission of the Bank, any property pledged, mortgaged, hypothecated or assigned to the Bank is leased or rented to a third party or is in any way charged, disposed of or removed from the place where it was at the time the loan, advance, or credit was granted;

(e) where the loan is not used for the purpose for which it was granted, or for any other reason it is necessary in the opinion of the Bank to protect its interests.