State Act
Section 86. Power of 1[Agriculture and Rural Development Bank]1 to receive moneys and grant discharges.
THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.
86. Power of 1[Agriculture and Rural Development Bank]1 to receive moneys and grant discharges.- Notwithstanding that a mortgage executed in favour of an 1[Agriculture and Rural Development Bank]1 has been transferred, or is deemed under the provisions of section 85 to have been transferred, to the 1[State Agriculture and Rural Development Bank]1 ,— (a) all moneys due under the mortgage shall, in the absence of any specific direction to the contrary issued by the Board or Trustee and communicated to the mortgagor, be payable to the 1[Agriculture and Rural Development Bank]1 and such payment shall be as valid as if the mortgage had not been so transferred; and (b) the 1[Agriculture and Rural Development Bank]1 shall, in the absence of any specific direction to the contrary issued by the Board or Trustee and communicated to the 1[Agriculture and Rural Development Bank]1 , be entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under the mortgage.