Debts due to co-operatives shall be a first charge.
Section 61
SEC. 61. Debts due to co-operatives shall be a first charge.— Notwithstanding the provisions of existing laws, rules and regulations, but subject to the prior claim of the Government in respect of any sum recoverable as a public demand or of Government financing institutions for whatever amount they have extended as loans in connection with production, storage, processing and marketing, or of a landlord in respect of share or rent or any sum recoverable as share or rent, any debt or outstanding demand owing to a co-operative from any member, past member or the estate of a deceased member shall be a first charge: If the debt or demand is due in connection with the supply of, or any loan to provide the means of paying for, seed, fertilizer, labor, subsistence, irrigation facilities, fodder for cattle, or any other thing incidental to the conduct of agricultural operations—upon the crops or other agricultural produce of such member or estate of such deceased member, at any time within two years from the date of such supply or loan; If the debt or demand is due in connection with the supply of, or any loan for the purchase of cattle, agricultural implements or machinery or warehouses for the storage of agricultural produce—in the manner and to the extent aforesaid upon the crops or agricultural produce of such member or estate of such deceased member and also upon the cattle, agricultural implements or machinery or warehouses thus supplied, purchased or constructed in whole or in part from any such loan; If the debt or demand is due in connection with the supply of, or any loan for the purchase of raw materials, industrial implements and machinery, workshops, warehouses or business premises—upon the raw materials or other things supplied or purchased by such member, or estate of such deceased member in whole or in part from any such loan and also upon any articles manufactured from raw materials or with implements and machinery, workshops, warehouses or business premises so supplied, purchased or constructed wholly or in part from any such loan; If the debt or demand is due in connection with any loan for the purchase or redemption of land,—upon the land purchased or redeemed by such member in whole or in part from any such loan; If the debt or demand is due in connection with any loan for the purchase or construction of any house or building or any portion thereof or in respect of the supply of materials for such construction,—upon the house or building so purchased or constructed by such member from any such loan or material; and If the debt or demand is due in connection with the supply of, or any loan for the purchase of consumer goods, facilities or other things,—upon the goods, facilities or property so supplied or purchased in whole or in part from any such loan. No property or interest in property which is subject to a charge under subsection (1) shall be transferred in any manner except by way of lease for a term not exceeding ten years without the previous permission of the co-operative. Notwithstanding the provisions of any law, any transfer made in contravention of the provisions of subsection (2) shall be void. Notwithstanding the provisions of this Act or of any other law— Any member of a co-operative who applies for a loan from the co-operative shall, if he owns any land, make a declaration in the form prescribed in the regulations. Such declaration shall state that the applicant for a loan thereby creates a charge on the land owned by him and specified therein for the payment of the loan which the co-operative may make to the member in pursuance of the application and for all future advances, if any, required by him which the cooperative may grant him as such member subject to such maximum as may be determined by the co-operative together with interest on such loan and advances; Any member of a co-operative who has obtained a loan from the co-operative before the enactment of this Act and who owns any land shall, as soon as possible, make a declaration in the form and to the effect referred to in clause (a), and no such member shall, unless and until he has made such declaration, be entitled to exercise any right as a member of the co-operative; (c) A declaration made under clauses (a) and (b) may be revised at any time by a member with the consent of the co-operative in whose favor such declaration is made; No member shall alienate the whole or any part of the land specified in the aforementioned declaration until the whole amount borrowed by or advanced to the member together with interest thereon is paid in full: Provided, That any such land and the standing crops thereon may be alienated with previous written permission of the co-operative.