Notwithstanding anything contained in this Act or any other law for the time being in force –
(a) it shall be lawful for a member, if he owns any land or any other immovable property or has interest of any land as tenant, to create a charge or mortgage in favour of a society as security for any financial assistance given to him by it;
(b) where a mortgage or a charge is to be created under clause (a) the member shall make a declaration in the prescribed form which shall state that the applicant thereby creates a mortgage or charge on such land, building or immovable property or interest specified in the declaration for the payment of the amount of loan which the society may advance to the member in pursuance of the application and for all future advances, if any, required by him which the society may make to him subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances;
(c) a declaration made under clause (b) may be varied at any time by a member with the consent of the society in favour of which such mortgage or charge was created;
(d) no member shall alienate the whole or any part of the property or interest therein specified in the declaration made under clause (b) until the whole amount borrowed by the member together with interest thereon is paid in full:
Provided that for the purpose of paying in full to the society the whole amount borrowed by the members together with the interest thereon, the member may with the previous permission in writing of the society and subject to such conditions as the society may impose, alienate the whole or any part of such property or interest therein :
Provided further that standing crops on any such land may be alienated without the previous permission of the society ;
(e) any alienation made in contravention of the provisions of clause (d) shall be void;
(f) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the society in the property or interest therein specified in the declaration made under clause (b) for and to the extent of the dues owned by him on account of loan and advances:
Provided that a mortgage or charge created in favour of a society after the commencement of this Act shall have priority over any claim of the Government arising from a loan granted under the Land Improvement Loans Act, 1883 or the Agriculturists Loans Act, 1884, after the creation of the mortgage of charge.