The Orissa Land Improvement Loans Rules, 1943

Published vide Notification No. 904-R., dated 17th March, 1943, Orissa Gazette Part 3 of 1943

or460

Notification No. 904-R., dated 17th March, 1943. - In exercise of the powers conferred by Sections 12 and 10 of the Land Improvement Loans Act, 1883 (XIX of 1883), read with the notification of the Government of Orissa No. 22, dated the 1st April, 1936, and in supersession of all rules made under the said sections of the said Act and therefore in the areas transferred from the Central Provinces under the Government of India (Constitution of Orissa) Order, 1936, the Revenue Commissioner of Orissa is pleased to make the following rules for the said areas, namely :

Power to sanction loans.- (1) The following officers shall be competent to sanction loans not exceeding in each case the sums specified against them for the purposes specified in Section 4 of the Act; provided that the limit of funds at their disposal is not exceeded :

	Rs.
Collector	2,500
Sub-Divisional Officers	1,000
Anchal Adhikaries or Tahasildars (Gazetted) and Sub-Deputy Collector	500

(2) The Revenue Divisional Commissioners shall be competent to sanction loans not exceeding Rs. 10,000 in each case and with the sanction of the State Government, loans exceeding Rs. 10,000.

Note. - The term 'Collector' in these rules includes Additional District Magistrate.

Application to whom to be made.- Applications for loans may be presented to the Collector or to the Sub-divisional Officer direct or through any Revenue Officer not below the rank of Revenue Inspector or through Tahasildars in Government.
Form of application.- Applications should be made in Form 'A' annexed to these rules, copies of which shall be supplied free of charge to intending applicants. Applications made in writing otherwise than in Form 'A', should be recorded in Form 'A' at the earliest opportunity and oral applications should be recorded at once in that form.
Local enquiry.- (1) If the grant of a loan appears prima faciedesirable, the Collector or Sub-divisional Officer shall, as early as possible, make an enquiry or cause an enquiry to be made by an officer not below the rank of Revenue Inspector or by any non-official agent whom he considers reliable for the purpose of verifying the particulars mentioned on the reverse of Form 'A'. The enquiry should not be carried further than is necessary with due regard to the security of the loan.

(2) Care shall be taken to ascertain what encumbrances there are on the land to be improved, and in cases in which doubts arise, a notice shall be issued by the Collector or Sub-divisional Officer under Sub-section (1) of Section 5 of the Act, calling upon the persons objecting to the loan to appear before him at a time and place to be fixed in the notice and to submit their objections. Such notice shall be published by being fixed to a prominent place in the village in which the land to be improved is situated.

(3) This notice shall also require the persons objecting to furnish the officer of the non-official agent to be deputed to make the local enquiry with a copy of the objections which they desire to submit to the Collector or Sub-divisional Officer and to appear before such, officer or non-official agent at such time and place as may be fixed by the latter.

(4) In dealing with objections submitted in compliance with a notice referred to in Sub rule (2) above, the Collector or Sub-divisional Officer shall consider any evidence which the objector may produce together with the report of any local enquiry made, and may make, or cause to be made, any further enquiry which he considers proper before passing the written order required by law admitting or overruling the objection.

(5) The Sub-divisional Officer, if the application is made to him, direct or forwarded to him under Rule 2, on completion of his enquiries and after disposing of objections other than those contained in the proviso to Section 5 of the Act, shall forward the same to the Collector with his opinion as to whether the loan should or should not be sanctioned.

(6) Ordinarily enquiries to ascertain the existence of encumbrances shall be made in registration offices by an officer deputed by the Collector and in such cases searching fees shall not be charged. But if applications are so numerous that it is not possible for the Collector to depute officers for this purpose enquiries shall be made by the staff of the Registration Department on payment by the Collector of the prescribed fees.

Consideration of application.- In considering an application for a loan the Collector shall decide-

(a) whether the proposed improvement satisfies the conditions of Sub-section (2) of Section 4 of the Act;

(b) whether the need for the loan is established;

(d) what amount should be advanced;

(e) in what instalments (if there are to be more than one instalment) the loan is to be advanced ; and

(f) subject to the provision of any rules in this behalf what period is to be allowed before re-payment is to commence.

In deciding the points mentioned in Clauses (b), (d), (e) and (f) of the preceding rule, the Collector shall have regard to the circumstances of the borrower, the character and cost of the improvement and the date on which it is likely to begin to pay, and he shall satisfy himself that the advance is sufficient to cover so much of the total outlay required for the construction of the work as the borrower is unable to provide out of his own resources.
Security.- (1) Where the amount of the loan does not exceed three-fourths of the value of the applicant's transferable interests in the land after the improvement has been made, no collateral security need be required.

(2) Where the applicant's interest in the land is not sufficient of itself to guarantee the re-payment of the loan, with any interests and costs that may become payable in respect of the same, further security shall be required which may consist of transferable interests in other lands belonging to the applicant or to other person or persons willing to become his surety or sureties, or of personal security of such securities.

(3) When the applicants are a body of five or more co-villagers who bind themselves jointly and severally for the re-payment of the loan as provided in Section 9 of the Act, their personal security will generally be sufficient, provided the loan does not exceed five times the annual rental of the land held by them and they execute a bond in Form 'E' annexed to these rules.

(4) Provided that the security offered is satisfactory, the Collector may grant a loan to a person who is in arrear for land revenue or for a previous loan.

N.B. - Lands which are not transferable without the landlord's consent should not ordinarily be accepted as security.

If the consent in writing of all the landlords in the following form has been previously obtained to the sale of the land in case of default, there will be no objection to accepting such lands as security :

I/We....................son of..........the landlord of...........estates in the district of ..........do hereby pledge myself/ourselves to raise no objection to the sale under the certificate procedure of the land specified on the margin held by my/our tenant (name)...........and proposed to be mortgaged by him as security for the re-payment of the loan of [Rs...............] under the Land Improvement Loans Act, in the event of the said..............failing to pay the whole or any part of the said loan with such interest as may be due thereon.

Note. - The agreement referred to in this instruction is exempt from stamp duty, vide paragraph 5 of India Government Notification No. 6 Stamps, dated the 12th September, 1931, printed at pages 222-233 of the "Bihar and Orissa Stamp Manual, 1924".

Such agreements will be deposited in the Record-Room with the record of the case.

Loan not to include fractions of a rupee.- No loan under these rules shall include a fraction of a rupee, and where loans are to be repaid in more than one instalment, the sums given shall be such that no instalment will include a fraction of a rupee.
Procedure.- (1) If a loan be sanctioned, the agreement contained in Form 'B' and when the applicants are a body of five or more co-villagers the agreement in Form 'E' shall be executed by the applicant or applicants, as the case may be, and the order prefixed to the said agreement shall be signed by the officer granting the loan. In the case of a loan sanctioned to a body of co-villagers, a statement showing the sums actually to be given to each individual borrower should be entered upon the order aforesaid and signed by each of them.

(2) When the sureties, if any, whom the applicant is required to furnish, give personal security only, they shall execute a bond in Form 'C'; when they hypothecate immovable property, they shall execute a bond in Form 'D'.

(3) When immovable property other than the land for the benefit of which the loan is granted, is hypothecated as collateral security by the applicant or by his sureties the agreement in Form 'B', or the bond in Form 'D', as the case may be, shall be attested by at least two witnesses and registered in accordance with the provisions of the Indian Registration Act, 1908 (XVI of 1908).

(4) When the required documents have been executed, and, in cases falling under Sub-rule (3), when they have been registered, a copy of the completed Form 'B', and payment order in Form 'F', shall be handed to the applicant together with a notice in Form 'G', which shall be explained to him. In the case of a loan to be disbursed by instalments a similar payment order shall be given to the applicant as each instalment becomes due, but the notice in Form 'G', shall be given only with the payment order for the last instalment.

(5) In every case a copy of Form 'B' shall be sent to the Registering Officer under Sub-section (1) of Section 89 of the Indian Registration Act, 1908 (XVI of 1908).

9A. Correction to be initialled. - All corrections in any of the forms used shall be made by striking out the original figure or word and writing the correction clearly above or at the side. Every correction shall be initialled by the officer on whose authority it is made.

Return of original agreement and bonds to borrower on re-payment of loan.- The original agreement with the bonds in Forms 'C' and 'D', if any, shall be returned, duly cancelled, to the borrower, if he so desires, after the whole amount borrowed has been repaid with interest and costs, if any, in full.
Disbursement of loans.- (1) Subject to a limit of Rs. 500 for a single loan or instalment, loans may be disbursed in the village by the officer granting the loan, or by an officer not below the rank of Revenue Inspector or by any non-official agent whom the officer granting the loan considers reliable.

(2) On disbursement, the payment order, after being properly receipted by the payee shall be taken back and the Disbursing Officer shall certify on it that the amount has been paid in full by him personally, or in his presence.

(3) In other cases loans shall be disbursed before a Gazetted Officer at the district or Sub-divisional Treasury on presentation of the payment order by the applicant or his authorised agent, and the officer shall certify on the order that the amount has been paid in full by him personally, or in his presence.

(4) In all cases the Disbursing Officer shall record on the payment order the name of the identifier of the payee, or the fact that he personally knows the payee.

(5) In all cases of disbursement at the district or Sub-divisional Treasury, the prescribed form of Treasury voucher (Form 'H') shall be used.

(6) The Disbursing Officer may not increase the total amount of the loan sanctioned on a joint or single application, but may reduce the total or correct obvious mistakes.

(7) In the case of loans to joint applicants granted under Rule 7(3), if one or more of the original applicants is absent at the time of distribution, payment may be made on his behalf to a substitute accepted as such by the other joint borrowers and the fact noted by the Disbursing Officer under the substitutes signature of thumb impression.

Disbursement of loans by instalments.- Unless otherwise ordered by the Collector, loans shall ordinarily be given in three instalments, viz., two-fifths before the work has been commenced, two-fifths when it is approximately half finished and one-fifth when it has been passed as completed after the inspection.
Closure of loans on failure to take instalments due.- (1) In the case of a loan granted by instalments, if the borrower, after taking one or more instalments, fails to apply for any other instalment within six weeks from the date on which he is entitled to it, the Collector may declare the loan closed.

(2) The total of the instalments taken by the borrower shall then constitute the loan, which shall be treated as having been fully paid on the date on which the last instalment was actually taken, and, in accordance with his agreement in Form 'B', the borrower shall be bound to repay the loan in such instalments as the Collector may decide.

Loans to bodies of co-villagers under Rule 7 (8) will not be granted by instalments.

Interest on loans.- [(1) The ordinary rate of interest on loans shall be the same as the rate of interest charged by Co-operative Credit Institutions in the State on loans granted by them, or similar purposes correct by the present Act.]

(2) In calculating interest a period of half a month or less shall be disregarded, and any period exceeding half a month shall be taken as one month.

(3) The interest due on each date of re-payment shall be calculated on the whole loan, or where a portion or portions has or have fallen due on a previous date, or though not due, have been paid in advance, the interest shall be calculated on the whole loan less those portions, subject to the following provisions :

(i) When an instalment of principal is paid late, but within the financial year in which it falls due, no further interest shall be charged beyond what would have been due, if the instalment had been paid on the due date;

(ii) At the end of the financial year, the demand of interest shall be recorded in the case of arrear instalments in respect of which suspension has not been granted, and this interest shall be realised in respect of the arrear instalment on whatever date during the ensuing financial year the instalment may be realised. Such interest shall be calculated at the rate of one pie per rupee per month for each month between the date on which the instalment fell due and the 31st March. (A month being interpreted in accordance-with Sub-rule (2) above);

(iii) if the arrear instalment is not paid by 31st March of the financial year that follows the financial year in which the default occurred, or, if it is not paid during any subsequent financial year, a further demand of interest shall similarly be recorded for the additional year or years of default.

Illustrations - A, B, C and D, on 17th October, 1920, each takes loans of Rs. 100 repayable in two equal instalments on 17th October, 1921 and 17th October, 1922.

The interest due on each of these loans on 17th October, 1921 will be 6¼ per cent on Rs. 100 for one year.

A pays the interest due from him on 17th October, 1921, but fails to pay the first instalment of principal till 21st February, 1922.

The interest due from A on 17th October, 1922, will be 6¼ per cent on Rs. 50 for one year, being the interest due on the second instalment for the 12 months-17th October, 1921 to 17th October, 1922. B pays the interest due on 17th October, 1921, but fails to pay the first instalment of principal till 1st July, 1922.

The interest due from B on 17th October, 1922, will be 6¼ per cent on Rs. 50 for one year, being the interest due on the second instalment from 17th October, 1921-17th October, 1922, 6¼ per cent on Rs. 50 for five months, being the interest due on the first instalment from 17th October, 1921 to 31st Match, 1922.

C fails to pay either instalment of principal till June, 1923, when he pays the first instalment but he meanwhile pays the interest due on 17th October, 1921, and the interest due on 17th October, 1922,

(1) 6% per cent on Rs. 100 for 12 months for 1920-21;

6¼ per cent on Rs. 50 for 12 months for 1921-22;

(2) 6¼ per cent on Rs. 50 for 5 months for 1921-22.

The interest due from C on 17th October, 1923, will be-

(1) 6¼ per cent on Rs. 50 for five months, being the interest due on the second instalment from 17th October, 1922 to 31st March, 1923; and

(2) 6¼ per cent on Rs. 50 for twelve months, being the interest due on the first instalment from 1st April, 1922 to 31st March, 1923.

C pays his second instalment of principal on 5th November, 1923. He will pay no further interest.

D makes no payment of interest or principal before 1st July, 1922, when he pays only the first instalment of principal without any Interest. The interest payable by D on 17th October, 1922, will be-

(1) 6¼ per cent on Rs. 100 for one year, being the interest due on the whole loan for the year 17th October, 1920 to 17th October, 1921;

(2) 6¼ per cent on Rs. 50 for one year being the interest due on the second instalment for the year 17th October, 1921 to 17th October, 1922;

(3) 6¼ per cent on Rs. 50 for five months, being the interest due on the first instalment from 17th October, 1921 to 31st March, 1922.

(4) [* * *]

Interest for intervening period when a loan is advanced in more than one instalment.- Where a loan is advanced in more than one instalment, the interest due on each previous instalment, calculated at the rate of 6¼ per cent per annumon the number of whole months from the date on which such instalment was taken, shall be deducted from the amount of the last instalment at the time when such instalment is paid to the borrower. The whole loan will then be considered to have been made on the date on which the last instalment was advanced to the borrower.
Dates of re-payment.- (1) The dates for repayment shall in all cases be fixed by the Collector with due regard to the dates of harvest of the principal crops.

(2) In an area which depends mainly on the crop of one season there shall ordinarily be one kist in the year. In an area which depends to a more or less equal extent on the crops of two seasons, there shall be two kists in the year. Where two kists are fixed, it is not necessary that they should be at intervals of six months, but the dates shall be separated from one another by an exact number of months in order to facilitate the calculation of interest.

Date of first instalment.- The date of re-payment of the first instalment shall ordinarily be fixed for the time when profit begins to accrue, but it shall in no case be later than two and a half years from the date of the actual advance of the loan, or when the loan is advanced in instalments, from the date of the advance of the last instalment actually taken.
Date of last instalment.- The date of the re-payment of the last instalment of a loan shall not ordinarily be later than twenty years from the date of the actual advance of the loan; or when the loan is advanced in instalments, twenty years from the date of the advance of the last instalment actually taken, the amount of the instalment to be repaid being fixed, in cases in which such a principal is applicable with reference to the annual profit expected to accrue from the improvement; provided that the whole amount of the loan outstanding shall in all cases be repaid before the expiry of the period for which the improvement is likely to be effective.
Officers empowered under Section 7 of the Act to recover loans.- The following officers are empowered to discharge the functions of a Collector for the recovery of loans under Section 7 of the Act ;

(i) All Sub-Divisional Officers in the Province of Orissa

(ii) All certificate officers appointed in accordance with Clause (3) of Section 3 of the Bihar and Orissa Public Demands Recovery Act, 1914 (B. and O. Act IV of 1915).

Re-payment of loans in advance.- (1) It shall be permissible for borrowers to repay their loans or portions thereof in advance of the dates fixed for re-payment.

(2) In cases in which such advance payments are made the interest levied at the time of next payment shall be limited to the amount accruing on the portion of the loan left outstanding after the advance payment.

(3) Advance payments of principal shall be accompanied by the interest due on the outstanding amount of the loan up to the date of payment of the advance, so as to facilitate calculation of interest at the time of the next payment, but the amount of principal repaid in advance, shall not include a fraction of a rupee.

(4) The interest levied on the occasion of an advance payment shall be calculated on the number of whole months (a month being interpreted in accordance with Sub-rule (2) of Rule 14 above) intervening since the date of last payment.

Suspension of instalment.- (1) The Collector may grant suspension of instalments of loans either by a general order relating to a specific area on account of failure of crops, or any other exceptional calamity, or by special orders on account of circumstances beyond the control of borrowers, which would render the payment of the instalment unduly burdensome. All such general orders shall be reported to the Revenue Commissioner at the time that they are made, and the total sums covered by the special orders shall be reported to the Revenue Commissioner at the time of the submission of the annual return.

(2) No interest shall be charged for the period of suspension, and the payment of each remaining instalment due in respect of the loan shall be postponed to the date of the next instalment, and a new date for the last instalment.

Remission.- (1) The risk of the failure of an improvement shall ordinarily be borne by the borrower, and remissions of principal or of interest or of both may be granted only in cases where a work fails from causes beyond the borrower's control and where recovery of the loan in full would occasion serious hardship.

(2) Subject to this restriction, the Collector may grant remission in the case of any one loan up to a limit of Rs. 50, the Revenue Commissioner of the Province up to a limit of Rs. 5,000. Larger remissions require the sanction of the Provincial Government.

Note. - Under Section 35 of the Court-fees Act, 1870, the Government of India have exempted from fees, applications presented to officers of Land Revenue for the suspension or remission of loans under the Act.

Inspection of works.- (1) The Collector shall make provision for the inspection from time to time of all works undertaken under the Act.

(2) In all cases the work shall, if possible, be inspected within one month from the date for completion of the work specified in the agreement contained in Form 'B'.

Misapplication of loan or untrue statement made by applicant or his sureties, how to be dealt with.- (1) If at any time it is proved to the satisfaction of the Collector that any part of a loan has been misapplied, or that it is not being spent on the work for which it was intended, or that the statements made by the applicant in his application for the loan, or by his sureties in their bond proffering collateral security, as to the nature and extent of the encumbrances on the immovable property pledged as security for the re-payment of the loan, are in any particular untrue, the Collector may, after recording in writing the grounds of his decision, and subject to the control of the superior Revenue Authorities, proceed to recover the whole amount of the loan, with sum interest as may have become due the thereon, at the rate of 12½ per cent per annumfrom the date on which the loan was made to the date of recovery.

(2) Before determining to take action under Sub-rule (1) the Collector shall make allowance for the expense of supervision, even when that may have been supplied by the borrower himself.

Loans in special cases.- Nothing in these rules shall be deemed to affect any power of the Revenue Commissioner or the Provincial Government to grant, in special cases, loans under the Act on terms other than those hereinbefore prescribed or to effect the terms of any special agreement under which any loan under the Act has been or may hereafter be granted, or the terms of any unexpired settlement.
Returns, registers and accounts.- The Revenue Commissioner shall regulate the forms of all returns, registers and accounts relating to loans under the Act.

Form 'A'

[See Rules 3 and 4 (1)]

Application for loan

Name, Father's name, residence, etc. of applicant	*Amount of loan required	**Nature of security	Nature of proposed improvement	***Situation of the land to be improved	Applicant's rights in the land	Proposed date or dates of repayment
1	2	3	4	5	6	7

Signature of applicant

* In figures as well as in words.

** State here whether personal or otherwise and whether, if it consists of immovable property, such property is free from encumbrances, and, if not, the nature and extent of the encumbrances, and if registered, the number and date of the registered deed and the name of the registry office.

*** References to the Khatian No. in the record-of-rights. (if any) in which the lands are contained, shall be given.

I/We declare that the statements made by me/us in the above application are true to my/our knowledge, except as to matters stated on information and belief and as to these I/we believe the same to be true.

Signature of applicant

Note. - Column 1 -Aliases, if any, to be entered. Column 3-The Inquiring Officer should, so far as may be possible, enquire into the statements made as to encumbrances, and record the result of his enquiries on the reverse of this Form.

[Reverse of Form 'A']

Particulars to be filled in by Enquiring Officer

I - Mahal, mouza and thana, field number and area of land to be improved.

II- Status of applicant, i.e., proprietor or tenant. If a tenant and the landlord's consent is required whether the landlord objects.

III- Security-

(i) If the land itself, the nature and value of the applicant's interest in it, and the nature and extent of encumbrances, if any;

(ii) If personal, the names and status of the co-sureties;

(iii) If property other than the land itself, its nature, value, and nature and extent of pre-existing encumbrances, if any.

IV- Probable cost of work.

V- Improvement-

(i) Its estimated utility and value;

(ii) Objections, if any, of third parties;

(iii) Probable date on which it will begin to yield profit.

VI- Re-payment-

(i) Suitable date for first instalment, with reference to Clause V (iii);

(ii) Proposed instalments and period of repayment.

VII- Date on which the loan or any instalment thereof should be received by the applicant.

Recommendations of the Enquiring Officer

Note 1. - Where a record-of-rights has been prepared a reference should be made to that record in order to ascertain the interest of the applicant, or that of his collateral surety, in the land which it is proposed to pledge.

Note 2. - In cases of joint loans in which no landed property is proffered as security, it should be carefully ascertained whether the total annual rental of the lands held by the applicants is not less than one-fifth of the amount of loan applied for.

Form 'B'

[See Rule 9 (1) and (3)]

Order and agreement under the Land Improvement Loans Act, 1883, and the rules made thereunder

Order

Whereas...............son of...........,of.............has applied for a loan under the Land Improvement Loans Act, 1883, and has executed the agreement set forth below, it is hereby ordered that a sum aggregating *Rs.............to be advanced by the undermentioned instalments, be granted as a loan under the said Act to the said............on the conditions set out in the agreement hereinbefore referred to, and for the benefit of the land specified in the First Schedule thereto.

Instalments

Date............

*Amount Signature of the officer granting the loan

Agreement

On application No..............

Dated ..........................

Whereas I,...............son of..............,of have applied **for a loan, of Rs...............* under the Land Improvement Loans Act, 1883, to be expended on (here specify clearly the nature of the improvement) on the land specified on the First Schedule hereto. I do hereby agree to observe on receipt thereof, the following terms and conditions :

(a) That the loan shall be re-payable on the dates and by the amounts specified below :

Date............

Amount*

On each kist date I shall pay, together with the instalment of principal, which is due form me, interest at one pie per month for the period of the kist on the amount which has been outstanding against me up to the kist date.

(b) That if, after taking one or more instalments of the loan, I fail to take any other instalment within six weeks from the date on which I am entitled to it, the Collector may declare the loan closed. The total of the instalments taken by me shall then constitute the loan which shall be treated as having been fully paid on the date on which the last instalment was actually taken; and I shall be bound to repay the loan in such instalments annually or half yearly as the Collector may decide, instead of the instalments specified in Clause (a), together with interest calculated in the manner described in Clause (a).

(c) That the interest due on the previous instalments of the loan shall be deducted from the amount of the last instalment at the time when this is paid to me, the whole loan being then considered, for the purpose of repayment, to have been made on the date on which the last instalment was advanced to me.

*In figures as well as in words.

Note. - Clauses (b) and (c) to be omitted in cases where the loan is granted in one instalment only.

(d) That the loan shall be applied solely to the purpose specified above, and that, if it is proved to the satisfaction of the Collector that any part of the said loan has been misapplied, the whole of the amount of the loan shall be deemed to become due forthwith, and the Collector may proceed to recover it with interest at the rate of 12 per cent per annum, from the date on which the loan was made to the date of recovery.

(e) That as security for the payment of the loan, with any interest and costs that may become payable in respect of the same, the immovable property specified in the First Schedule hereto is hypothecated to Government.

(f) That as collateral security for the re-payment of the loan, with any interest and costs that may become payable in respect of the same, the immovable property specified in the Second Schedule hereto is hereby mortgaged to Government.

Note. - This clause will be retained only if immovable property other than the land to be improved, is mortgaged.

(g) That if any instalment is not repaid on the due date, the whole amount of the loan shall be deemed so have become due and payable.

(h) If it shall be proved to the satisfaction of the Collector that the statements made by me in my application for this loan as to the nature and extent of encumbrances are in any particular untrue the Collector may so declare in writing, and proceed to recover the whole amount of the loan with interest at the rate of 12½ per cent per annum from the date on which the loan was made to the date of recovery.

(i) The work for which the loan is taken shall be completed by-

First Schedule

Second Schedule

Witnesses-

Signature of person to whom the loan is made

Certified that the above document has been signed in my presence, the terms and conditions of it being explained to the signatory personally by me.

Signature of the officer granting the loan

N.B. - In the description of the immovable property mentioned in the Schedules above, which should be made in the manner prescribed in Section 21 of the Indian Registration Act, 1908 (XVI of 1908), it shall be stated if the property is free from encumbrances, and, if not, what are the nature and extent of the encumbrances.

Form 'C'

[See Rule 9 (2)]

Security bond to be used when applicant proffers personal security

Whereas...............son of ............of..........having executed the agreement required, by the rules, has on.........received from*........an order under the Land Improvement Loans Act, 1883, and the rules made thereunder, in virtue of which he is entitled to receive the aggregate sum of **...........Rs.........as a loan from Government for the purposes of***........... and whereas security for the due application of the loan and for the punctual re-payment of the same according to the terms of the agreement executed by him is demanded from the said........... I/we do hereby pledge myself/ourselves as surety/sureties for the purposes aforesaid, and agree that if the said.........fails to comply, with the terms on which the loan has been sanctioned, either by misapplying the said loan or by failing to repay any instalment of the same on the date on which it may become due, or any interest or costs payable in respect thereof, it shall be lawful for the Collector to treat as an arrear of land revenue, due from me/us such sum as may be necessary to make good the amount which, in consequence of the said default, may have become due to Government and to recover such sum, from me/us personally.

Signature of surety or sureties

*Here enter the official designation of the officer granting the loan.

**In figures as well as in words.

***. Here state the purpose for which the loan is given.

Form 'D'

[See Rule 9 (2) and (3)]

Hypothecation bond to be used when immovable property is proffered by collateral surety

Whereas...........,son of..........of...... having executed the agreement required, by the rules has on ..........received from*.................an order under the Land Improvement Loans Act, 1883, and the rules made thereunder, in virtue of which he is entitled to receive the aggregate sum of **.........Rs as a loan from Government for the purpose of ***.........and whereas security for the due application of the loan and for the punctual re-payment of the same according to the terms of the agreement executed by him is demanded from the said I/we hereby mortgage to Government the immovable property mentioned. In the Schedule below as a collateral security for the purpose aforesaid, and agree that if the said.......fails to comply with the terms on which the loan has been granted, either by misapplying the said loan or by failing to repay any instalment of the same on the date fixed for its payment or any interest or costs payable in respect thereof, it shall be lawful for the Collector to recover from the said property such sum as may be necessary to make good the amount which in consequence of the said..........'s default may have become due to Government.

Schedule

I/We declare that the statements made by me/us in the above Schedule as regards the nature and extent of the encumbrances on the immovable property mortgaged by me/us as security for the re-payment of the loan granted to...........are true to my/our knowledge, save as to matters stated on information and belief, and as to these I/We believe the same to be true.

Witnesses-

(1)

(2)

Signature

N.B. -(1) In describing in the manner prescribed in Section 21 of the Indian Registration Act, 1908, the immovable property to be mentioned in the Schedule above, it shall be stated whether the property is free from encumbrances ; and, if not, what are the nature and extent of the encumbrances.

(2) This mortgage bond must be attested by two witnesses and must be duly registered.

*Here enter the official designation of the officer granting the loan.

**In figures as well as in words.

***Here state the purpose for which the loan is given.

Form 'E'

[See Rules 7 (3) and 9 (1)]

Order and agreement providing the joint and several liability of persons taking loans under the Land Improvement Loans Act, 1883

Order

Whereas the undersigned persons have applied for a joint loan under the Land Improvement Loans Act, 1883, to be expended on and have executed the agreement set forth below, it is hereby ordered that the sum of Rupees**.......be granted as a loan under the said Act to the said persons on the conditions set out in the Agreement.

Signature of officer granting the loan

Agreement

Whereas we, the undersigned persons, have on ................received from*.......... under the Land Improvement Loans Act, 1883, the sum of Rupees**............as a loan from Government to be expended on............. we do hereby agree-

(1) that all and every one of us and our heirs and representatives and the heirs and representatives of each of us shall be jointly and severally bound to Government for the re-payment of the whole amount payable in respect thereof

(2) that the conditions, set forth below, will be binding on us, our heirs and representatives of each of us jointly and severally; and

(3) that in case of default in repaying the said loan or any portion thereof, Government will have the right and power to realise the whole and every part of the money payable from the person and property, whether movable or immovable of all and of every one of us, and of all and each of our heirs and representatives and the heirs and representatives of each one of us jointly and severally, in accordance with the said Act and the rules framed thereunder and in conformity with the terms and conditions of this agreement.

Conditions

(a) That the loan shall be repayable on the dates and by the amounts specified below :

Date.........

Amount**

On each kist date, the instalment of the principal payable on that date, shall be paid together with interest at the rate of one pie per rupee per month, for the period of the kist on the amount outstanding up to that date.

(b) That the loan shall be applied solely to the purpose specified above and that, if it is proved to the satisfaction of the Collector, or of the officer who sanctioned the loan, that any part of the said loan has been misapplied, the whole of the amount of the loan shall be deemed to become due forthwith, and the Collector or the officer who sanctioned the loan, may proceed to recover it with interest at the rate of twelve and a half per cent per annum, from the date on which the loan was made to the date of recovery.

(c) That if any instalment is not repaid on the due date, the whole amount of the loan shall be deemed to have become due and payable.

Name of borrower	Father's name	Amount of loan*	Signature (or thumb impression) and signature of the identifier	Signature of Disbursing Officer

				*Total

Certificate

Certified that the above document has been signed in my presence, the terms and conditions explained to the signatories, and the amount of the loan, namely, Rupees*...........disbursed by me personally in the amounts noted against their names.

Signature of Disbursing Officer**

*Here enter the official designation of the officer granting the loan.

**In figures as well as in words.

Form 'F'

[See Rule 9 (4)]

The Treasury Officer of..........

Pay to.......................son of........................of......... the sum of *Rs ............ being the amount/instalment of loan **.........granted to him under the Land Improvement Loans Act, in respect of which ne has signed the necessary documents and furnished the necessary security and which is repayable in annual/biennial instalments of *Rs each beginning on the..........of.............together with interest at 6¼ per cent per annum.

*Applied for in application No............. dated.......

Dated.....................................

Signature of officer granting the loan

Certificate

The sum of Rs*....................has been paid in full to......... by me personally/in my presence.

Date............

Signature

(In the case of Government Officer, the designation should be added)

*In figures as well as in words.

**Here enter the official designation of the officer granting the loan.

Form 'G'

[See Rule 9 (4)]

Notice of the borrower

Loan of Rs.........to........of..........village.......thana...........made on........ under the Land Improvement Loans Act, 1883 (XIX of 1883).

Notice

You have separately agreed to repay the above loan in the instalments noted below

Date when due	Principal	Interest	Total*
1	2	3	4

You should pay each instalment to the Collector/Sub-divisional Officer on the date it is due.
If you like you may send the instalment due to the Collector, Sub-divisional Officer of ....... by money order.
If you send the instalment by money order you must be careful to write in the money order from the name of the person who took the lean, or if there were several persons then the name of the principal person. You must also write the name of your village, and of the thana in which it is situated.
You must also be careful to write on the money order form that the instalment is paid on account of the original loan of Rs*.............granted on application No...... dated...............
You must write all these things clearly so that there may be no confusion.

*In figures as well as in words.

Form 'H'

Voucher for payments made at treasuries

[See Rule 11 (b)]

Voucher No............. of .... list of payments.

.........Treasury............Orissa...........month of........20...

Received this day of......................20.......the sum of Rupees........ annas.............pies being the amount of loans under the Land Improvement Loans Act, 1883 (XIX of 1883).