21.
| (1) Every company applying for registration as an insurer under this Act, shall keep deposited with the Deputy Secretary to the Treasury, for and on behalf of the Government of Sri Lanka, such sum of money as is determined by the Board under paragraph (c) of subsection (1) of section 13 of this Act. |
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| (2) A deposit made under subsection (1) may consist of cash or of Government securities or of Government guaranteed securities and the value of any securities so deposited shall be taken to be their market value at the date of deposit. |
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| (3) A deposit made in cash shall be held by the Deputy Secretary to the Treasury to the credit of the insurer, and shall be returnable to the insurer in cash in the circumstances and in the manner in which under the provisions of this Act such a deposit may be returned, and any interest accruing due on securities deposited under this section by any insurer shall. when it is collected, be paid by the Deputy Secretary to the Treasury to the insurer. |
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| (4) An insurer may at any time substitute for the securities deposited with the Deputy secretary to the treasury and under this section, other government securities or government securities of equal value assessed at the market rate prevailing at the time of subsection and the Deputy secretary to the treasury shall on the written application of any insurer who has made a deposit invest in government securities or government guaranteed securities the whole or any part of the cash received by the Deputy securities deposited by the insurer under this act. |
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| (5) The Deputy secretary to the treasury shall if so requested by the insurer sell any securities deposited with him and either hold the cash realised by such sale as deposit or invest in such Government securities or government. guaranteed .securities as may be specified by the insurer, the whole or any part of the cash received by him and hold the securities in which the investment is so made as deposit. |
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Sri Lanka Consolidated Acts