(1) The compensation to which a landowner is entitled under section 128 shall be paid to him by the Government in the first instance, and it may be paid in cash, in lump sum or in annual instalments not exceeding ten or in the form of bonds which may be negotiable or non-negotiable but transferable.
(2) From the date of the declaration referred to in section 127, the landowner shall be entitled to interest at the rate of 2½ per cent. per annum on the compensation or such portion thereof as remains unpaid.
(3) Any mortgage of, or encumbrance on, the land of which the ownership is transferred to the tenant under section 127 shall be a valid charge on the amount of compensation payable to the landowner.
(4) Notwithstanding anything contained in sub-sections (1) to (3), where the person entitled to compensation under section 128 is a charitable or religious institution, the compensation shall, instead of being assessed under that section, be assessed as a perpetual annuity equal to the reasonable rent for the land, less the land revenue payable on such land. The amount so assessed shall be paid to such institution in the prescribed manner.