(1) A bank granting any financial assistance to the holder of a pass book shall make an endorsement on the pass book indicating the amount of such financial assistance and where such financial assistance has been given on the security of any property the bank shall also make an endorsement against the property on the security of which the financial assistance has been granted by it, and the endorsement so made shall have the effect of creating a charge in favour of the bank on the property against which the endorsement has been so made and the holder of the pass book shall be debarred from alienating the said property until the outstanding amount of the financial assistance granted by the bank has been repaid together with interest due thereon.
(2) The bank shall forward a copy of every endorsement made by it under the provisions of sub-section (1) to the revenue officer and another copy to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property which has been so charged is situate, and on receipt of the copy of such endorsement,-
(a) the revenue officer shall make the necessary entries in the Record of Rights maintained by him under the Karnataka Land Revenue Act, 1964 (Karnataka Act 12 of 1964) ; and.6
(b) the Sub-Registrar shall place, or cause to be placed, such endorsement on the copy of the pass book forwarded to him under section 4.
(3) The holder of the pass book may also produce the endorsement made by the bank on the pass book before the Sub-Registrar to enable him to satisfy himself as to whether, a copy of the said endorsement has or has not been placed on his records, and in case it has not been so done, to get the said endorsement copies on the pass book which had been forwarded to him under section 4.