4. The following new sections are hereby inserted immediately after section 19, and shall have effect as section 19A and section 19B, of the principal enactment: -
| 19A.
| | (1) The Board shall not entertain any application by a debtor or creditor in respect of a debt purporting to be secured by any such conditional transfer of immovable property as is a mortgage within the meaning of this Ordinance unless that application is made at least thirty days before the expiry of the period within which that property may be redeemed by the debtor by virtue of any legally enforceable agreement between him and his creditor. | | |
| | (2) Where the Board entertains an application of a debtor in respect of such a debt as is referred to in subsection (1), the Board shall cause notice of that fact signed by the secretary to be sent together with a copy of the application by registered post to the creditor to whom the application relates. | | |
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| 19B.
| | (1) Where a creditor receives a notice under subsection (2) of section 19A relating to an application of a debtor of his in respect of such a debt as is referred to in subsection (1) of that section, he shall not sell, alienate, transfer, lease or mortgage the property to which such notice relates unless such application is dismissed by the Board or unless the settlement effected under this Ordinance in respect of such debt permits him to dispose of such property. | | |
| | (2) Any sale, alienation, transfer, lease, or mortgage effected in contravention of subsection (1) shall be null and void " | | |
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Sri Lanka Consolidated Acts