Debts incurred from the State Government, Banks, etc. to have priority

Notwithstanding anything contained in any other law for the time being in force, every debt arising out of any loan obtained by the Board from the State Government and banks and other financial institutions for carrying out the purposes of this Act (a) shall have priority over all other debts, whether secured or unsecured, incurred by the Board, and (b) shall be a preferential debt within the meaning of section 530 of the Companies Act, 1956, and such debts shall rank equally amongst themselves and be paid in full out of the assets of the Board unless such assets are insufficient to meet them in which case they shall abate in equal proportion.