31.
| (1) At any time after the grant of a loan is approved by the Authority and before the entire amount of the loan is given to the applicant therefor, the Authority may, if owing to material misstatements by the borrower or misapprehension of the actual facts by the Authority the loan was approved in circumstances in which it would not have been granted if at the time facts had been known 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 the Authority may determine. |
|
| (2) Where the Authority cancels under subsection (1) the grant of a loan after a part of the loan has been given to the 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 42 to 61 shall apply to and in relation to that loan. |
|
|
Sri Lanka Consolidated Acts