(1) On effecting the saie by a Land Development Bank under section 133, the bank shali, in the preeeribed manner, submit tothe State Land Development Bank and the Registrar a repert ??’settingforth the manner in which the tale has. been effected and the result ofthe saie, and the State Land Deveiepment Bank may, With the approval of the Registrar, confirm the sale or cancel it.
(2) Where the sale is efi'ected by the State Land DevelopmentBank or the Trustee under Section 133, the State La nd DeVelopment Bank or the Trustee, as the case may be, shall in the prescribed manner submit to the Registrar a report setting forth the manner in whichthe sale has been effected and the result of the 88.16, and the Registrar may confirm or cancel it.
135. The proceeds of every sale effected under section 133 andconfirmed under the preceding section shall be applied first in payment of all costs, charges and eXpenses incurred in connection With the saleor attempted sales, secondly, in payment of any or all interest dueon account of the mortgage in consequence whereof the mortgagedproperty was sold, and thirdly, in payment of the principal due on account of the recovery.
If there remain any residue from the preceeds of sale, the sameshall be paid to the person proving himself interested in the propertysold, or if there are more such persons then one, then to such personsupon their joint receipt or according to their respective interest thereinas may be determined by Land DevelopmentBank :
Provided that, before any Suoh payments are made the unsecureddues owing—
(a) from the mortgage! to the Land Development Bank may beadjusted, and
(b) from any member or past member to whom the mortgagoris indebted may also be adjusted under the Written authority given bysuch member and past member, and after holding such inquiry asmay be deemed necessary.