88.
| (1) Where either before or after the appointed date a company has redeemed any debentures previously issued, then-
| | (a) unless any provision to the contrary, whether express or implied, is contained in the articles or in any contract entered into by the company ; or | | |
| | (b) unless the company has by passing a resolution to that effect or by some other act, manifested its intention that the debentures shall be cancelled, | | |
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| (2) On a reissue of redeemed debentures the person en titled to the debentures shall have, and. shall be deemed always to have had, the same priorities as if the debentures had never been redeemed. |
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| (3) Where a company has either before or after the appointed date deposited any of its debentures to secure advances from time to time on current account or other wise, the debentures shall not be deemed to have been redeemed by reason only of the account of the company having ceased to be in debit whilst the debentures remained so deposited. |
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| (4) The reissue of a debenture or the issue of another debenture in its place under the power by this section given to, or deemed to have been possessed by, a company, whether the reissue or issue was made before or after the appointed date, shall be treated as the issue of a new debenture for the purposes of stamp duty, but it shall not be so treated for the purposes of any provision limiting the amount or number of debentures to be issued: |
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| (5) The reissue after the appointed date of debentures redeemed before that date shall not prejudice any right or priority which any person would have had under or by virtue of any mortgage 'or charge created before that date. |
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Sri Lanka Consolidated Acts