(1) Regardless of what is written in the existing law, before the commencement of this Act, if the property of the trust has been taken as a mortgage in any way, the property of the trust shall not be sold or confiscated by auction because such loan has not been recovered.

However, this provision will not be applicable in case of mortgaged property before 18th of Samvat 2058.

(2) The bank or financial institution giving loan by taking the property of the trust as a mortgage as per sub-section (1) may recover such loan from any other property of the person giving such mortgage in lieu of such property.