National Land Code (Revised - 2020) · Updated to 15 Oct 2020 · Chapter 1 · Creation of charges, and general provisions relating thereto
Section 241
Feedback & supportSubject to subsection (3)—
the whole, but not a part only, of any alienated land;
alienated land
“alienated land” means any land (including any parcel of a subdivided building) in respect of which a registered title for the time being subsists, whether final or qualified, whether in perpetuity or for a term of years, and whether granted by the State Authority under this Act or in the exercise of powers conferred by any previous land law, but does not include mining land;
the whole, but not a part only, of any undivided share in alienated land; and
any lease of alienated land, may be charged under this Act with—
the repayment of any debt, or the payment of any sum other than a debt; or
the payment of any annuity or other periodic sum.
The powers conferred by subsection (1) shall include power to create second and subsequent charges.
The said powers shall be exercisable in any particular case subject to—
any prohibition or limitation imposed by this Act or any other written law for the time being in force;
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any restriction in interest to which the land in question is for the time being subject; and
in relation to leases, the provisions thereof, express or implied.
Without prejudice to paragraph (3)(a), no charge may be granted to two or more persons or bodies otherwise than as trustees or representatives.
Subject to subsection (3), a charge in respect of alienated land or any lease of alienated land may be created in favour of a financial institution notwithstanding that such institution having beneficial rights pursuant to any transaction contracted in compliance with Syariah.
For the purpose of subsection (5), the financial institution shall be those institutions licensed under any written law relating to financial institutions or development financial institutions.