13. The following new section is hereby inserted immediately after section 64, and shall have effect as section 64A, of the principal Act:-
| 64A.
| | (1) At any time after the grant of a loan is approved by the appropriate authority and before the entire amount of the loan is given to the applicant therefor, that authority may, at the discretion of that authority and without assigning any reason, cancel the grant of the loan or reduce the amount of the loan or modify the conditions applicable to the loan or withhold payment of the whole or any part of the loan for such period as that authority may determine. | | |
| | (2) Where the appropriate authority cancels under subsection (1) the grant of a loan after a part of the loan has been given to applicant therefor, such part shall be deemed to be the full amount of the loan granted to him and such authority may, by written order, direct such applicant to repay that loan and the interest due thereon within the time specified in such order. Where such order is not complied with within the time allowed therefor, default shall be deemed to be made in respect of the whole of the unpaid portion of the loan and the interest due thereon and where that loan was granted on the mortgage of any land, the provisions of sections 73 to 89 shall apply to and in relation to that loan." | | |
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Sri Lanka Consolidated Acts