24. The following new sections are hereby inserted immediately after section 61 of the principal enactment under the sub-heading " (iv) Recovery ", and shall have effect as section 61A, section 61B, section 61c, section 61D and section 61E, of that enactment: -
| 61A. Whenever default is made in the payment of any sum due on any loan, whether on account of principal or of interest or of both, default shall be deemed to have been made in respect of the whole of the unpaid portion of the loan and the interest due thereon up to date; and the board may, in its discretion, take action as specified either in section 61B or in section 61D: |
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| 61B. Subject to the provisions of section 61E, the board may by resolution to be recorded in writing authorize any person specified in the resolution to enter upon any immovable property mortgaged to the bank as security for any loan in respect of which default has been made, to take possession of and to manage and maintain such property, and to exercise the same powers in the control and management of such property as might have been exercised by the mortgagor if he had not made default. |
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| 61C. (1) Any person authorized by resolution of the board under section 61B in respect of any property shall be entitled generally to take action in terms of the resolution and in particular-
| | (a) to sell the produce of such property; | | |
| | (b) to receive the rents, profits or other income from such property ; | | |
| | (c) to pay the expenses incurred in the control and management of such property out of the income from such property; | | |
| | (d) to appropriate to himself out of such income such sum (if any) as the board may deem fit to fix as remuneration for his services; | | |
| | (e) to remain in possession of such property until all moneys due to the bank under the mortgage on such property have been fully paid or until he is directed by the board to yield possession of such property under subsection (2). | | |
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| (2) Every person authorized by resolution of the board under section 61B in respect of any property shall-
| | (a) pay monthly, out of the income of such property such sum (if any) as the board may in its discretion fix, to the mortgagor for his maintenance; | | |
| | (b) pay quarterly or as otherwise directed by the board to such person or persons and in such manner as the board may direct the balance of the income from such property remaining after the payments herein before authorized have been made; | | |
| | (c) keep and render to the board at such intervals as the board may determine, clear and accurate records of all sums received or paid out by him in respect of such property; | | |
| | (d) yield possession of such property to the mortgagor or some other person as directed by the board and pay to the board any balance of the income from such property remaining in his hands after the payments herein before authorized have been made. | | |
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| (3) The board shall when all sums due to the bank under the mortgage have been fully paid surrender possession of the mortgaged property to the mortgagor and return to him any balance remaining of the income from such property. |
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| 61D. Subject to the provisions of section 61E, the board may by resolution to be recorded in writing authorize any person specified in the resolution to sell by public auction any immovable property mortgaged to the bank as security for any loan in respect of which default has been made in order to recover the whole of the unpaid portion of such loan, and the interest due thereon up to the date of the sale, together with the moneys and costs recoverable under section 63. |
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| 61E.
| | (1) Save as otherwise provided in sub-section (2), the provisions of sections 61B and 61D shall apply in the case of any default notwithstanding that the borrower may have died or that any right, title or interest whatsoever in the property mortgaged to the bank as security for the loan may have passed by voluntary conveyance or operation of law to any other person. | | |
| | (2) Where a borrower is dead and probate of his will or letters of administration to his estate have not been issued to any person, the District Court of Colombo or the District Court of the district in which the property, mortgaged to the bank by the borrower, is situate, may, upon application made in that behalf by the board and after service of notice of the application on such persons, if any, as the Court may order. and if satisfied that the grant of probate or the issue of letters of administration is likely to be unduly delayed, appoint a person to represent the estate of the borrower for the purposes of this section: and the provisions of sections 61B and 61D shall not apply in the case of any default made by such borrower unless and until a person is appointed under this sub-section to represent the estate of such borrower". | | |
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Sri Lanka Consolidated Acts