(1) When any charges towards cost of any work are to be recovered from any person under section 35, then not with standing anything contained in this Act or any other law for the time being in force, all the rights and liabilities of the Authority for the recovery of the cost or part of cost from the land holders may, if the Authority so directs, stand transferred to a Land Development Bank as delined in the Uttar Pradesh Co-operative Land Development Banks Act, 1964, hereinafter called the "development bank" in relation to such land holders subject to such terms and conditions (including any condition regarding giving of any guarantee, by the Authority or the State Government) as may be agreed upon between the Authority, the State Government and such Bank.
(2) Where the Authority makes a direction under sub-section (1). It shall be deemed that each land holder concerned has become member of the co-operative society. namely the Development Bank concerned, and accordingly, an amount equivalent to the value of one share in the society shall be added to the cost of works and be recoverable along with it.
(3) For purposes of arriving at such agreement every over of land shall produce before the Development Bank all such documents, and the evidence relating to his land as the Bank may require.
(4) On such transfer of rights and liabilities of the Authority, the Development bank shall pay to the Authority an amount equal to the extent of liability accepted by it under the agreement, and the Authority shall Inform the land holders of land concerned of such transfer, and there upon amount to be recovered from such person shall be recoverable by the development bank as if it was a loan advanced to such person by such Bank.
(5) The transfer of the rights and the liabilities and payment made in accordance therewith shall discharge the owner of the land of his liabilities to make payment to the Authority to the extent only of his respective liabilities accepted by the Development bank.