Power of Land Development Banks Where Mortgaged Property Is Destroyed Or Security Becomes Insufficient

Where any property mortgaged to a Land Development Bank is wholly or partly destroyed, or for any reason the security is rendered insufficient and the mortgager, having been given a reasonable opportunity by the Bank to provide further security enough to render the whole security sufficient, or to repay such portion of the loan as may be determined by the Bank, has failed to provide such security or to repay such portion of the loan, the remainder of the loan shall be deemed to fall due at once, and the Bank shall be entitled to take action against the mortgager under section 88 or section 89 for the recovery thereof.

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Explanation :- Security shall be deemed insufficient within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the rules, regulations or the bye-laws of the Land Development Bank.