(1) Subject to any rules made under section 7, all loans, all interest (including any penal interest), chargeable thereon, and costs incurred in making or recovering the same, shall be recoverable when they become due, by the Collector, or such officer as the State Government may authorise in this behalf, on receipt of the intimation from the authority sanctioning the loan, in one or more of the following modes, namely:-
(a) from the borrower, —as if they were an arrear of land revenue due by him;
(b) from his surety, if any,—as if they were arrears of land revenue due by him;
(c) out of the assets created out of the amount of loan advanced,—according to the procedure for realisation of land revenue by the sale of such assets;
(d) out of the property comprised in the collateral security (if any) according to the procedure for the realisation of land revenue by the sale of such property.
(2) Where any sum due on account of any such loan, interest or costs is paid to the Collector by a surety or an owner of property comprised in any collateral security, or is recovered under sub-section (1) by the Collector from a surety or out of any such property, the Collector shall, on the application of the surety or the owner of that property, as the case may be, recover that sum on his behalf from the borrower, or out of the assets of the industry for the benefit of which the loan was granted in the manner provided by sub-section (1).