(1) Notwithstanding anything contained in any other law for the time being in force, where different mortgages or charges have been executed by an agriculturist in respect of same land both in favour of a bank and in favour of any person then the mortgage or charge executed in favour of a bank shall have priority over the mortgage or charge in favour of such person irrespective of the fact whether the mortgage or charge in favour of the bank was executed before or after the date of the mortgage or charge in favour of such person.
Explanation.- In this sub-section the word "person" shall not include the State Government or any co-operative society.
(2) Where in respect of the same land different mortgages or charges have been executed by an agruculturist in favour of,--
(i) the State Government,
(ii) a co-operative society, and
(iii) one or more banks, such mortgages or charges shall rank for priority in accordance with the respective dates of their execution.
(3) Notwithstanding anything contained in any other law for the time being in force, where different mortgages or charges have been executed by an agriculturist in respect of the same land for obtaining crop loan from one bank and a subsequent term loan from another bank then the mortgage or charge in relation to the subsquent term loan shall have priority over the mortgage or charge in relation to the crop loan provided the mortgage or charge in relation to such term loan was executed with the knowledge and consent of the bank providing the crop loan.
Explanation.- For the purpose of this section "crop loan" means a loan advanced to an agriculturist for the purpose of finacing seasonal agricultural operation or the marketing of crop and is recoverable within fifteen months from the date of advancement of such loan and the words "term loan" means a loan advanced to an agriculturist for meeting outlay relating to the replacement or maintenance of wasting assets including machineries or for capital investment designed to increase the crop output and is repayable within any period exceeding fifteen months but not exceeding twenty years.
Priority of mortgages and charges.
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