Amount payable to religious institutions etc.

(1) In respect of the amount payable to a religious, charitable or other institution capable of holding property the provisions of sections 47, 50 and 51 shall have effect subject to the modifications specified in sub section (2). (2) In respect of lands held by such institution and vesting in the State Government under the provisions of this Act the amount payable shall be an annuity to be paid so long as the institution exists, of a sum equal to the net annual income referred to in sub-section (2) of section 72. Towards the annuity so payable, the State Government shall issue a non-transferable and non-negotiable annuity bond. (3) Where the land in respect of which the annuity payable under sub-section (2) is subject to encumbrances,- (a) if the value of the encumbrance is less than the amount of the annuity the holder of the encumbrance shall be paid in full from out of the amount of annuity and the balance shall be paid to the institution; (b) if the value of the encumbrance is more than the amount of the annuity, five per cent of such value shall be paid from out of such amount till the value of the encumbrance is fully paid and the balance shall be paid to the institution; (c) if there are more encumbrances than one, the amount under clauses (a) and (b) shall be distributed according to priority.