Section 21
Creation of charges in favour of co-operative societies
of Co-Operative Societies Act 1993
Subject to any prior claim of the Federal Government or any
State Government on the property of the debtor and to the lien or claim of a landlord in respect of rent or any money recoverable as rent and, in the case of immovable property, to any prior registered charge thereon—
(a)
any debt or outstanding demand payable to a co-operative society by any member or past member shall be a first charge on all crops or other agricultural produce, fish (fresh water and salt water), felled timber or other forest produce, marine produce, livestock, fodder, agricultural, industrial and fishing implements, plant, machinery, boats, tackle and nets, raw materials, stock-in-trade and generally all produce of labour and things used in connection with production raised, purchased or produced in whole or in part from any loan whether in money or in goods given to him by the co-operative society;
(b)
any outstanding demands or dues payable to a registered housing co-operative society by any member or past
Co-operative Societies 29
member in respect of rent, shares, loans or purchase money or any other rights or amounts payable to such co-operative society shall be a first charge upon his interest in the immovable property of the co-operative society.
(2)
Nothing in paragraph (1)(a) shall affect the claim of any bona fide purchaser or transferee without notice.