3. The following new section is inserted immediately after section 47 and shall have effect as section 47A of the principal enactment:
| 47A. (1) Where at the time of the execution of a mortgage bond in favour of a lending institution for the payment of a loan, the principal of which exceeds one hundred and fifty thousand rupees the mortgagor executes a separate instrument, attested by the notary attesting the bond and by the witnesses to the bond containing |
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| (2) In any case referred to in subsection (1), no process shall issue for the seizure and sale of any property of the mortgagor, other than the mortgaged property, until the mortgaged property is sold and the proceeds thereof applied in satisfaction of the decree. |
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| (3) Where the separate instrument referred to in subsection (1) is to be executed by any mortgagor, it shall be the duty of the notary to explain to the mortgagor, that the instrument provides for the renunciation of the benefit of section 46 and that the effect of such renunciation is that, in addition to the mortgaged property, other property of the mortgagor is liable to be sold in execution of a decree in an action upon the mortgage. |
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| (4) No stamp duty shall be payable upon the further instrument referred to in this section. |
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| (5) Where the mortgage is created by an instrument referred to in section 69 which is attested by an officer of a lending institution, then for the purpose of the application of the provisions of subsection (1) and sub section (3) of this section, any reference in those provisions to the notary attesting the mortgage bond shall be deemed to be a reference to such officer. |
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| (6) Nothing in this section shall apply to any action upon a mortgage created before the coming into force of this section. |
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| (7) For the purpose of this section " lending' institution " means |
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Sri Lanka Consolidated Acts