(1) Notwithstanding anything contained in any law for the time being in force but subject to any claim of the Government in respect of land revenue or any money recoverable as arrears of land revenue and to the provisions of Sub-Section (2), any debt or outstanding demand due to the 2[State Co-operative Agricultural and Rural Development Bank] or any 2[Co-operative Agricultural and Rural Development Bank] on account of a mortgage executed by any member or past or deceased member in favour of such bank shall be a first charge upon the land so mortgaged.
(2) Any such mortgage as aforesaid shall also have priority over any claim of the Government arising from a loan under the Land Improvement Loans Act, 1883 (19 of 1883) or the Agriculturists Loans Act, 1884 (12 of 1884), granted after the execution of the mortgage.
1. Substituted by Orissa Act 23 of 1994.
2. Substituted by Orissa Act 5 of 1970.
2[87-A. Transfer of Mortgages. :– (1) Notwithstanding anything contained in this Act or in the relative mortgage bonds, the mortgages executed in favour of the 1[State Co-operative Agricultural and Rural Development Bank] by the individual members thereof shall be deemed to be mortgages executed in favour of the 1[Co-operative Agricultural and Rural Development Bank] operating in the area wherein the mortgaged properties are situate and the said members shall be deemed to be members and debtors of such 1[Co-operative Agricultural and Rural Development Bank] with effect from the date on which the 1[State Co-operative Agricultural and Rural Development Bank] transfers the amounts due thereon and the shares held by the members to the 1[Cooperative Agricultural and Rural Development Bank] concerned.
(2) Notwithstanding anything contained in this Act or in the relative mortgage bonds, a mortgage executed in favour of a 1[Co-operative Agricultural and Rural Development Bank] in respect of properties situate within the area of operation of another 1[Co-operative Agricultural and Rural Development Bank] newly or subsequently established shall be deemed to be executed in favour of such other bank and the mortgagor shall be deemed to be a member and debtor of such other bank with effect from the date on which the former bank transfers the amounts due thereon and the shares held by the member to the later bank.
(3) All moneys due under a mortgage transferred under this Section shall be payable to the 1[Co-operative Agricultural and Rural Development Bank] to which the mortgage is transferred under Sub-Section (1) or Sub-Section (2) and such bank shall be entitled to receive money, to grant valid discharge and to sue on the mortgage or take any other proceedings for the recovery of money due thereunder.]