Agricultural Credit Act, 1947

Effect of chattel mortgage charging specific stock to be purchased subsequently by means of a loan agreed to be made.

22.—Where—

(a) a recognised lender has agreed to make a loan to a recognised borrower wholly or partly for the purchase of specific stock, and

(b) that recognised borrower, for the purpose of giving security for the loan, has, prior to such purchase, executed a specific chattel mortgage of the specific stock, and

(c) the chattel mortgage is duly registered under this Part,

that chattel mortgage shall, notwithstanding anything contained in this Part, create a charge on the said specific stock as on and from the date on which the said stock comes into the ownership and possession of the recognised borrower.