3. Section 29 of the principal enactment is hereby repealed and the following section substituted therefor:
| 29.
| | (1) Where default is made in the payment of any sum due on any loan, overdraft, advance or other accommodation granted by the Bank on the mortgage of movable or immovable property, whether that sum is due on account of principal or interest or both, default shall be deemed to have been made in respect of the portion that remains unpaid of that loan, overdraft, advance or other accommodation and the interest due thereon upto date of default. | | |
| | (2) Any instrument to secure a loan by the Bank may provide that if the borrower fails or neglects to pay, on the due date, the instalment and interest or to make the equated or other payment, as the case may be, then due in respect of the loan, then interest shall be payable on the loan at such rate in excess of that at which the loan has been granted as may be prescribed: | | |
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Sri Lanka Consolidated Acts