Jammu and Kashmir Money Lenders and Accredited Loan Providers Act, 2010
No: 23 Dated: Oct, 25 2010
THE JAMMU AND KASHMIR MONEY LENDERS AND ACCREDITED LOAN PROVIDERS ACT, 2010
(Act No. XXIII of 2010)
An Act to regulate the transactions of money lending in the State of Jammu and Kashmir and for matters connected therewith and incidental thereto.
Whereas, it is expedient to make provisions for protecting the interests of borrowers, for regulating the transactions of money lending and to secure more transparency in such transactions in the State of Jammu and Kashmir.
Be it enacted by the Jammu and Kashmir State Legislature in the Sixtieth Year of the Republic of India as follows : -
CHAPTER I
Preliminary
1. Short title, extent and commencement. - (1) This Act may be called the Jammu and Kashmir Money Lenders and Accredited Loan Providers Act, 2010.
(2) It shall extend to the whole of the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Government may, by notification in the Government Gazette, appoint.
2. Definitions. - In this Act, unless the context otherwise requires, -
(1) "Accredited Loan Provider" means a person who has a contractual arrangement with an institutional creditor for receiving finance from such institutional creditor for the purpose of on-lending to the borrowers in his or its own name ;
(2) "bank" means -
(i) a banking company or a Co-operative Bank to which the Banking Regulation Act, 1949 (Central Act 10 of 1949) applies;
(ii) the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955) ;
(iii) a Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959);
(iv) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970);
(v) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Central Act 40 of 1980); and
(vi) a Regional Rural Bank established under the Regional Rural Banks Act, 1976 (Central Act 21 of 1976);
(3) "Borrower" means, a person to whom a loan is advanced and includes a successor-in-interest or surety ;
(4) "co-operative society" means a society registered or deemed to have been registered under the Jammu and Kashmir Co-operatives Societies Act, 1989;
(5) "Government" means the Government of Jammu and Kashmir;
(6) "institutional creditor" means any bank which has advanced or agreed to advance monies to accredited loan providers for the purpose of on-lending;
(7) "interest" includes the return to be made over and above what is actually lent, whether the same is charged or sought to be recovered specifically by way of interest or otherwise, but does not include any sum lawfully charged by a money lender or accredited loan provider as costs, charges, expenses towards evaluation, assessment and creation of the security ;
(8) "loan" means an advance whether or money or kind at interest, with or without security, and includes advance, discount, money paid for or on account of or on behalf of or at the request of any person, or the forbearance to require payment of money owing on any account whatsoever, and every agreement (whatever its terms or form may be) which is in substance or effect a loan of money, and also an agreement to secure the repayment of any such loan, but does not include -
(a) a deposit of money or other property in a Government Post Office Bank or in a Government Savings Bank ;
(b) a loan advanced by the Government or by any local authority authorised by the Government;
(c) a deposit of money with or a loan advanced by a Co-operative Society;
(d) a loan advanced by the National Bank for Agriculture and Rural Development established under the National Bank for Agriculture and Rural Development Act, 1981 (Central Act 61 of 1981);
(e) a loan advanced by the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981 (Central Act 28 of 1981);
(f) a loan advanced by the Small Industries Development Bank of India established under the Small Industries Development Bank of India Act, 1989 (Central Act 30 of 1989);
(g) a loan advanced by the National Housing Bank, constituted under the National Housing Bank Act, 1987 (Central Act 53 of 1987);
(h) a loan advanced by State Financial Corporations established under the State Financial Corporation Act, 1951 (Central Act 63 of 1951); and
(i) a loan advanced by any institution -
(1) established by or under an Act of Parliament or the State Legislature which grants any loan or advance of the provisions of that Act or
(2) notified in this behalf by the Government, in consultation with the Reserve Bank ;
(j) an advance made to a subscriber, or a depositor in a Provident Fund from the amount standing to his credit in the fund in accordance with the rules of the fund ;
(k) a loan to or by an insurance company as defined in the Instance Act, 1983 (Central Act IV of 1983);
(l) a loan or debenture in respect of which dealings are listed on any Stock Exchange;
(m) a loan or deposit to or by a non-banking financial company registered with Reserve Bank under Chapter III of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934);
(n) a loan to, or by, or a deposit, with any charitable society or association registered under the Jammu and Kashmir Societies Registration Act, Samvat 1977 ;
(o) an advance made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1981 (Central Act XXXVI of 1981) other than a promissory note ;
(p) a loan or advance made by a trader bona fide carrying on any business, other than money lending, if such loan is advanced in the regular course of such business.
Explanation :- For the purpose of clause (p), "trader" means a person who in the goods or other property, whether movable or immovable and includes a wholesale or a retail merchant.
(9)"Lok Adalat" means the Lok Adalat established under the provisions of the Jammu and Kashmir Legal Services Authority Act, 1997 and includes a Permanent Lok Adalat;
(10) "money lender" means a person whose main or subsidiary occupation is the business of advancing and realizing loans in the State ;
(11) "Panchayat" means the body constituted at the Panchayat level under the Jammu and Kashmir Panchayati Raj Act, 1989 ;
(12) "prescribed" means prescribed by rules made under this Act;
(13) "principal" means in relation to a loan, the advance actually made to a borrower;
(14) "register" means a register of money lenders of accredited loan providers maintained under this Act;
(15) "registering authority" means a person or an officer appointed by the Government to perform the functions of a registering authority under this Act;
(16) "registration" means a money lender's-registration or accredited loan providers registration granted under this Act;
(17) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934);
(18) "rules" means rules made under this Act.