Section 22   [ View Judgements ]

General provisions relating to pledge, hypothecation and lien


(1) The Bank or, as the case may be, the Government shall not be responsible to any person creating pledge, hypothecation or lien or party to thereof for any loss caused to him on account of the invocation of the pledge, hypothecation or lien by the pledgee or the creditor in violation of the terms of pledge, hypothecation or lien or the provisions of any other law for the time being in force.



(2) The Bank or, as the case may be, its agent shall- (a) not take cognizance of any notice or claim of any person that may be received by it before it has taken the steps required to be taken under regulation 21 on receipt of Forms - XIV, XV or XVI;



(b) take the steps required under regulation 21 as if it had not received such notice or claim.



(3) No transfer by the holder of any Government security in respect of which pledge, hypothecation or lien is in force shall be effected by the Bank or its agent without the prior concurrence of the pledgee or the creditor, as the case may be.



(4) The Government security in respect of which pledge, hypothecation or lien has been recorded in the books of the Bank or its agent, as the case may be, matures for repayment, the maturity proceeds shall not be payable to the holder of the security, without the written concurrence of the pledgee or creditor along with duly executed Form - XVI.



Explanation:- For the purpose of regulation 21 and this regulation, -



(a) "pledgee" means a person in whose favour the Government security has been pledged;



(b) "creditor" means a person in whose favour the Government security has been hypothecated or a lien in respect thereof has been created

#LawyerServices #Section #Act #Law #Statute #IndianLaw #Kanoon