Section - 18 - Recovery of Debts.

    (1) Where any borrower who is, by the terms of an agreement under any liability to the Bank, makes default in repayment or otherwise fails to comply with such terms, the default or failure not being due to natural calamity, the Bank may, subject to any regulations made in this behalf under this Act, take over the management of the business of the borrower and sell or realise any property pledged, mortgaged, hypothecated or assigned by the borrower to secure his liability to the Bank.

    (2) Subject to any prior claim of the Government and to any claim in respect of rent, any debt or liability owed to the Bank by any borrower as specified in subsection (1) of this section shall be a first charge:-

    (a) upon any crops or other agricultural produce raised in whole or in part by means of the loan obtained from the Bank by the borrower, and

    (b) upon any cattle, fodder for cattle, agricultural or industrial implements, or raw materials for manufacture, or upon workshops, stores or places of business purchased by such borrower in whole or in part with the proceeds of any loan.

    (3) Sums due from a co-operative society and recoverable under subsection (1) of this section may be recovered in accordance with the provisions of law for the time being in force relating to the recovery of such sums.