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The Money-Lenders Act, 1940 (Bengal Act)

( ACT NO. X OF 1940 )

Chapter V


Notice and information to be given on assignment of loans by lenders
28. (1) Where any debt in respect of -
(i) a loan advanced by a lender, whether before or after the commencement of this Act, or
(ii) interest on any such debt, or
(iii) the benefit of any agreement made, or security taken, in respect of any such debt or interest,
is assigned to any person, the assignor (whether he is the lender by whom the loan was advanced or any person to whom the debt has been previously assigned) shall, before the assignment is made,-
(a) give to the assignee notice in writing that the debt, interest thereon, agreement or security is affected by the operation of this Act, and
(b) where the debt is in respect of a loan advanced by a money-lender, supply to the assignee in such form as may be prescribed all information as to the state of the loan together with copies of documents relating thereto.
(2) Any person who acts in contravention of any of the provisions of this section shall be liable to indemnify any other person who is prejudiced by the contravention, and shall also be punishable, on conviction, with imprisonment which may extend to one year or with fine which may extend to one thousand Taka or with both.
(3) In this section the expression “assigned” means assigned by an assignment inter vivos other than an assignment by operation of law; and the expressions “assignor” and “assignee” have corresponding meanings.

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Ministry of Law, Justice and Parliamentary Affairs