(1)
A mortgage executed in favour of a Primary [Agriculture and Rural] [Substituted by section 5 of the Tamil Nadu Co-operative Societies (Amendment) Act, 1999 (Tamil Nadu Act 50 of 1999) which came into force on the 15th December 1999.] Development Bank shall have priority over any claim of the Government arising from a loan under the Land Improvement Loans Act, 1883 (Central Act XIX of 1883) granted after the execution of the mortgage.
(2)
Without prejudice to the provisions of sub-section (1) and notwithstanding anything contained in this Act or in any other law for the time being in force, a mortgage executed in favour of a Primary [Agriculture and Rural] [Substituted by section 5 of the Tamil Nadu Co-operative Societies (Amendment) Act, 1999 (Tamil Nadu Act 50 of 1999) which came into force on the 15th December 1999.] Development Bank shall, subject to the claim of the Government in respect of land revenue, have priority over all other claims against the property secured by such mortgage.