| (1) Where any Co-operative Society has grantee a loan for agricultural purposes to any person who i a member of that Society on the security of a bone which stipulates, inter alia, that in the event on default in the repayment of the loan, such person shall surrender on demand his rice ration book an( those of the members of the family of such person then, the following provisions shall apply in the even of default in the repayment of such loan: -
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| (a) that Society shall have the right to demand from such person by notice in writing the surrender of all or any of such rice ration book within such time as may be specified in the notice, and, upon the expiration of that time such person shall cease to have the right to retain possession of all or any such books; | | |
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| (b) in the event of the rice ration books being so surrendered, that Society shall have the right to retain possession of them and to dispose of them in accordance with such direction as may be issued from time to time by the Food Controller; | | |
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| (c) upon failure to surrender the rice ration books in compliance with such a notice, no rice rations shall be issued to the holders of the rice ration books referred to in such notice until the loan is settled in full, whether by the surrender of rice ration books or otherwise; | | |
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| (d) if the rice ration books are surrendered in compliance with such a notice but the value of the rice rations to which the coupons in such books relate is not sufficient to settle the loan in full, no rice rations shall be issued to the holders of the rice ration books referred to in such notice until such loan is settled in full, whether by the surrender of rice ration books or otherwise; | | |
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| (e) every case of failure to so surrender the rice ration books shall forthwith be reported to the Food Controller by that Society, and the Food Controller shall forthwith issue written directions to the authorized distributor from whom rations are drawn on such rice ration books, to stop the issue of rations on such ration books, and it shall be the duty of such authorized distributor to comply with such directions; | | |
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| (f) the settlement of the loan by means of the with holding of rice rations, whether by the surrender of the rice ration books to which such rice rations relate or otherwise, shall, after the assignment of a value to such rice rations as hereinafter provided, be effected in such mode and manner as may be determined by the Food Controller from time to time by directions which he is hereby authorized to issue in that behalf. | | |
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Sri Lanka Consolidated Acts