Priority of mortgage over certain claims

Priority of mortgage over certain claims. (1) A mortgage executed in favour of a Agriculture and Rural Development Bank shall have priority over any claim of the Government arising from a loan under the Karnataka Land Improvement Loans Act, 1963 (Karnataka Act 16 of 1963) or the Karnataka Agriculturists Loan, Act, 1963 (Karnataka Act 17 of 1963) granted after the execution of the mortgage. (2) Notwithstanding anything contained in the Karnataka Land Reforms Act, 1961, where a mortgage in favour of a Agriculture and Rural Development Bank is in respect of land in which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest and the rights of the mortgagee shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of the said Act and the sale of the land and his interest therein under the said Act shall be subject to the prior charge of the Agriculture and Rural Development Bank.