(1) Where an agriculturist creates a charge on land or any other immovable property which he owns, or in which he has an interest, in respect of any financial assistance given to him by a bank, he may make a declaration on the lines of the Form set out in the Schedule hereto annexed or as near hereto as circumstances permit declaring that thereby he creates in favour of the bank, a charge on such land or his interest therein, or other immovable property, as the case may be, to secure the financial assistance given to him by the bank.
(2) A declaration made under sub-section (1) may be varied from time to time by the agriculturist with the consent of the bank in whose favour the declaration has been made. Such variation shall unless otherwise stipulated, take effect from the date the original declaration became effective.
CHAPTER III Charges and mortgages in favour of Banks and their priorities