Notwithstanding anything contained in this Act, or in any other law for the time being in force-
(i) a member who makes an application for a loan to a registered society of which the majority of the members are agriculturists shall, if he owns land, or other immovable property or has interest in any land as a tenant make a declaration in the form prescribed, if any, that he hereby creates a charge upon such land or other immovable property or such portion thereof or the interest in the land as a tenant as may be specified in the declaration, in respect of the loan which the society may make to the member on the application and future loans, if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;
(ii) a declaration made under clause (i) may be varied or cancelled at any time by the member with the previous written permission of the society in favour of which such charge has been created;
(iii) no member shall alienate the whole or any part of the land or other immovable property or interest therein or of the interest in the land as a tenant, specified in the declaration made under clause (i) until the said declaration is cancelled; and any transaction made in contravention of this clause shall be null and void:
Provided that it shall be lawful to a member to mortgage such land or any part thereof in favour of a land development bank.
(iv) subject to the claims of the Government in respect of land revenue and to the claims of the land development bank in respect of any money payable under a mortgage in favour of the land development bank, there shall be first charge in favour of the society on such land or interest specified in the declaration made under clause (i) for and to the extent of the dues owing by him on account of the loan;
(v) the declaration made under clause (i) or any variation or cancellation thereof under clause (ii), shall be sent by registered post by the society to the sub-registrar having jurisdiction over the area in which the land or the other immovable property is situated;
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(vi) on receipt of the declaration or variation or cancellation, the subregistrar shall register such declaration or variation or cancellation and issue a copy thereof to the registered society;
(vii) any declaration made under clause (i) or any variation or cancellation thereof under clause (ii) which has not been registered under clause (vi) shall be null and void.