Charge on the immovable property of a member for the loans borrowed

(1) Notwithstanding anything in this Act or in any law for the time being in force, but subject to any claim of the Government in respect of land revenue and to any claim of an (Agricultural Development Bank). (2) Such declaration may be varied or cancelled at any time by the member with the consent of the society. (3) Subject to the provisions of sub-section (1) and to the claim of any person in whose favour a mortgage or a charge has been created before the date of registration of the declaration made under sub-section (1), no land in respect of which such declaration has been made or any part of or any interest in such land shall be sold or otherwise transferred until the entire amount of the loan or advance taken by the member from the society together with interest thereon is paid to the society; and any transaction made in contravention of this sub-section shall be void: Provided that, if a part of the amount borrowed by a member is paid, the society may, on application from the member and with the approval of the financing bank, release from the charge created under the declaration made under sub-section (1), such part of the land or interest in such land specified in the said declaration, as it may deem proper, with due regard to the security of the balance of the amount remaining outstanding from the member: Provided further that, nothing in this sub-section shall apply in respect of (a mortgage created in favour of) an (Agricultural Development Bank), subsequent to the date of registration of the declaration made under sub-section (1). (4) The declaration made under sub-section (1) or any variation or cancellation thereof under sub-section (2) shall be sent by registered post by the society to the Sub-Registrar having jurisdiction over the area in which the land is situated. He shall, if it is in order, register such declaration or variation or cancellation and return it to the society and where it is not in order, he shall return it to the society without registering it. Where it is registered, it shall take effect from the time of its registration and where it is not registered; it shall be of no effect. Explanation.—For purposes of this section, the expression “society” means- (i) any society, the majority of members of which are agriculturists and the primary object of which is to obtain credit for its members for any agricultural purpose; or (ii) any society or any class of societies specified in this behalf by the Government by a general or special order.