(1) All assets purchased with or created trom the Joan shall be deemerl to be n"ortgaged or hypothecated, as the case may he, to Government for the repav;nent of the loan with interegt due thereon and the amount of the Joan and the interest thereon shall be ~he first charge on such assets.
(2) Subject to sub-sec-tim1 (1) al:>ovP-, tb e borrower shall not without the prior approval of the sanctioning authority mortgage, convey or otherwise trans fer any of his interests in the whole cr any part of the assets purchased with or created from the loan :
Provided that no~hin g in this ~ecti on sh.1ll affect the borrower's right to sc11 such articles of his stock-in-trade as are meant f0r sale to customers in the normal course of business.
2 Inserted by Assam Act XX of 1951.
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