14. Section 66 of the principal Act is hereby amended as follows :-
| (1) by the renumbering of that section as subsection (1) of section 66 ; and |
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| (2) by the insertion, immediately after the renumbered subsection (1), of the following new subsections :-
| | '(2) Where a person to whom a loan has been granted by the appropriate authority on the security of a land mortgaged to that authority repays a part of that loan and that authority is satisfied that a portion (hereafter in this subsection referred to as an " adequate portion") of that security is sufficient for the purpose of ensuring the recovery of the balance due on that loan by way of principal and interest, that authority may release and discharge from the mortgage such portion of that security as is in excess of the adequate portion. | | |
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| (3) Where any person to whom a loan has been granted by the appropriate authority on the security of a land mortgaged to that authority has transferred or transfers a portion of that land to any other person, that authority may, upon a request made therefor by the transferee, release and discharge from the mortgage that portion of that land if-
| | (a) an apportionment among the transferor and the transferee of the amount outstanding on the loan is made to the satisfaction of the appropriate authority, | | |
| | (b) the transferee undertakes to pay to that authority such amount of the loan as is apportioned to him and executes a mortgage bond to the satisfaction of that authority to secure the payment of such amount, and | | |
| | (c) such steps as are necessary in the opinion of the appropriate authority for the purpose of releasing and discharging from the mortgage that portion of the land transferred to the transferee are taken by the transferor and transferee. | | |
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Sri Lanka Consolidated Acts