39.
| (1) Subject to the provisions of this Act the Bank is authorized to carry on and transact all kinds of business generally carried on and transacted by savings banks: |
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| (2) Without prejudice to the generality of the powers conferred by sub-section (1), the Bank may-
(k) subject to the provisions of sub-section. (4), grant loans to co-operative societies and approved institutions. | | (a) undertake any activities whatsoever in connection with the promotion or mobilization of savings or the raising of the marginal propensity to save; | | |
| | (b) subject to the provisions of this Act, open and maintain deposit and savings accounts of such types as may be prescribed; | | |
| | (c) issue and deal with savings certificates under the provisions of this Act; | | |
| | (d) subject to the approval of, and the imposition of such conditions as may be laid down by, the Monetary Board, issue and deal with any other bonds, certificates or other instruments for the purpose of attracting savings; | | |
| | (e) purchase, take on lease or in exchange, hire or otherwise acquire, any immovable or movable property and any rights or privileges which the Bank may think necessary or convenient with reference to any business which the Bank is authorized to carry on or transact; | | |
| | (f) construct buildings on any land belonging to or taken on lease by the Bank, and improve, manage, develop, exchange, lease, mortgage, dispose of, sell, turn to account or otherwise deal with all or any part of the property and rights of the Bank; | | |
| | (g) with the approval of the Minister and subject to such terms and conditions as may be laid down by him by regulations made under this Act, conduct lotteries and prize competitions for the purpose of augmenting the funds of the Bank; | | |
| | (h) do all things incidental or conducive to the exercise of the above powers; | | |
| | (i)invest moneys lying in deposit and savings accounts and in funds and schemes established under section 35 in one or more of the following:-
| | | (i) in any security, stock, debentures or Treasury bills of, or guaranteed by, the Government; |
| (ii) in any security, stock or debentures of any financial institution owned by the Government or in which not less than fifty per centum of the capital is owned by the Government; |
| (iii) in any other security, stock or debentures approved by the Minister in consultation with the Monetary Board; |
| (iv) on a first mortgage of immovable property situated within any such area in Ceylon as may be approved by the Board, and having such title as is acceptable to the Board; |
| (v) on deposit with the Government at a rate not less than the Treasury bill rate: and |
| (vi) in any other manner prescribed by the Minister after consultation with the Monetary Board; |
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| | (j) with respect to the investment of moneys on a first mortgage of immovable property referred to in paragraph (i) (iv)-
| | | (i) make provision in the deed of mortgage to charge penal interest upon failure to pay any instalment of capital re- payable on the mortgage, or any interest, in terms of that deed; and |
| (ii) manage, supervise or control, with or without remuneration, or participate in the management, supervision or control, with or without remuneration. of any agricultural or other under- taking carried on in connection with such immovable property,, where such management, supervision or control or such participation therein appears to the Board to be necessary in order to protect the interests of the Bank in such investment; and |
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| (3) Investment in securities, stock, debentures or Treasury bills of. or guaranteed by, the Government, shall constitute not less than sixty per centum. or such lesser percentage, as the Minister may specify by Order published in the Gazette, of the moneys lying in deposit and savings accounts. |
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| (4) The Bank shall not exercise the power to grant loans to co-operative societies and approved institutions-
| | (a) until the Minister approves the exercise of that power generally or in respect of any such class or description of co-operative societies or approved institutions as he may from time to time specify by regulations made under this Act; and | | |
| | (b) except in accordance with such terms and conditions as the Minister may lay down by regulations so made. | | |
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Sri Lanka Consolidated Acts