# Tlr&lr Act. 1960, Section 109

- Act: Tlr&lr Act. 1960 (Act 43 of 1960)
- Source URL: https://indiacode.ecourtsindia.com/tlr-lr-act-1960/section/109/

## Text

It shall be lawful for an under raiyat to create a simple mortgage or a charge on his interest in the land leased to him, in favour of the Government, 1[a cooperative society, a bank or such other institution as may be notified in the Official Gazette by the State Government] in consideration of any loan advanced to him 2[by the Government or, as the case may be, by a cooperative society or a bank or an institution] ; and in the event of his making default in the repayment of such loan in accordance with its terms, it shall be lawful 3[ for the lender] to cause his interest in the land to be attached and sold and the process applied in payment of such lone. Right to create a mortgage or charge 4[Explanation .- In this section, the expression a bank means- (a) a banking company as defined in the Banking Regulation Act, 1949 ; 10 of 1949 (b) the state bank of India as constituted under the State Bank of India Act, 22 of 1955 1955 ; 5[bb) a subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) 38 of 1959 Act, 1959 ;] (c) a corresponding new bank constituted under the Banking Companies 5 of 1970 (Acquisition and Transfer of Undertaking) Act, 1970; (d) Agro-Industries Corporation ; 10 of 1963 (e) the Agriculture Refinance Corporation constituted under the Agriculture Refinance corporation Act, 1963 ; (f) the Agriculture Finance Corporation Limited, a company incorporated 1 of 1956 under the Companies Act, 1956.] 6[109A. It shall be lawful for an under raiyat who is person under disability to lease land from year to year not beyond the year in which the disability ceases in the manner laid down in the Explanation to sub-section (3) of Section 118.] Lease of land by under-raiyat to be legal

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