5.
| (1) In this section
| | (a) " cash price installment", in relation to a hire-purchase installment, means an amount which bears to the net cash price the same proportion as the amount of the hire-purchase installment bears to the total amount of hire-purchase price less any deposit as defined in paragraph (b) ; | | |
| | (b) " deposit" means any sum payable by the hirer under the hire-purchase agreement by way of deposit or other initial payment 6r credited or to be credited to him under the agreement on account of any such deposit or payment, whether that sum is to be or has been discharged by payment of money or by transfer or delivery of goods or by any other means; | | |
| | (c) " net cash price ", in relation to goods comprised in a hire-purchase agreement, means the cash price of such goods as is required to be specified in the hire-purchase agreement under sub-paragraph (i) of paragraph (b) of subsection (2) of section 3 less any deposit as defined in paragraph (b) of this -subsection; | | |
| | (d) "net hire-purchase charges", in relation to a hire- purchase agreement for any goods, means the difference between the net hire-purchase price and the net cash price of such goods ; | | |
| | (e) "net' hire-purchase price", in relation to goods comprised in a hire-purchase agreement, means the total amount of hire purchase price of such goods as is required to be specified in the hire-purchase agreement under sub-paragraph (i) of paragraph (b) of subsection (2) of section 3 less
| | | (i) any amount which is payable to cover the expenses of delivering the goods or any of them to or to the order of the hirer and which is specified in the agreement as included in the hire-purchase price; |
| (ii) any amount which is payable to cover registration or other fees under any law in respect of the goods or the agreement or both and which is specified in the agreement as included in the hire-purchase price; |
| (iii) any amount which is payable for insurance in respect of the goods and which is specified in the agreement as included' in the hire-purchase price ; |
| (iv) the amount, if any, payable as installation charges and which is specified in the agreement and included in the hire-purchase price; |
| (v) any deposit as defined in paragraph (b) ; and |
| (vi) any amount payable as business turnover tax or such other tax as is specified in the hire-purchase agreement, being a tax on the hire or sale of the goods ; |
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| | (f) " statutory charges" in relation to a hire purchase agreement, means the amount calculated in accordance with the provisions of subsection (2). | | |
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| (2) The statutory charge shall be an amount calculated at such rate percentage per annum as may be prescribed" by the Minister in consultation With the Minister in charge of the subject of Finance, having regard to the rates at which the Central Bank lends monies to commercial banks and, to the interests of the national economy, in accordance with following formula: |
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| (3) Where the net hire-purchase charges in relation to a hire-purchase agreement exceed the statutory charges in relation to such agreement calculated in accordance with the provisions of subsection (2), the hirer shall be entitled to- have his liability reduced by the amount by which the net hire-purchase charges exceed the statutory charges aforesaid. |
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| (4) Where the hirer is entitled to have his liability reduced by the amount referred to in subsection (3), his liability shall be reduced by that amount and that amount may be set off by the hirer against the amount that would otherwise be due under the agreement and, to the extent to which it is not so set off, may be recovered by the hirer as a debt due to him by the owner. |
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Sri Lanka Consolidated Acts