7.
| (1) Where a loan has been granted to a student under section 4, the amount of the loan and the interest due thereon shall be recovered by the appropriate specified bank in accordance with the terms and conditions subject to which such loan was granted : |
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| (2) The receipt by the appropriate specified bank of any interest under the provision to subsection (1) shall be deemed not to preclude such bank from recovering such interest from the recipient of the loan or from the guarantor of the loan, as the case may be. |
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| (3) Where such interest or part thereof has been recovered under subsection (2) from the recipient of the loan or the guarantor of the loan, as the case may be, the manger of such bank shall pay to the Deputy Secretary to the Treasury an amount equal to such recovery. |
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| (4) Where an appropriate specified bank has recovered any sum of money in respect of a loan granted under this Act, such sum shall first be applied in liquidation of the liability to repay to the Deputy Secretary to the Treasury the interest received by the bank under the proviso to subsection (1), and accordingly the manager of such bank shall remit such sum to the Deputy Secretary to the Treasury. |
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Sri Lanka Consolidated Acts