Whenever any mortgaged rights have been sold in execution of a judgment of a competent court, or under express authority contained in a special law, to satisfy any debt due in respect of a registered bond or otherwise, and the proceeds of the sale have been paid to the legal holder of the bond, the sheriff concerned or the person acting under the authority of such special law shall notify the Director General of how much of the capital sum due in terms of the bond has been paid, and shall transmit the bond to the Director-General, who shall write off the amount paid in the appropriate registers and deeds.

[Section 40 substituted by section 32 of Act No. 24 of 2003]