7.
| (1) Where a loan has been granted to a student under this Act, the amount of the loan and interest due thereon shall be recovered by the specified bank in accordance with the terms of the grant of the loan: |
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| (2) The receipt by such bank of any interest under the provisions of the proviso to sub-section (1) shall not be deemed to preclude such bank from recovering such interest from the recipient of the loan, or the guarantor of the loan, as the case may be. |
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| (3) Where such interest or part thereof has been recovered from the recipient of the loan or the guarantor of the loan, as the case may be, under sub-section (2), the manager of such bank shall pay to the Deputy Secretary to the Treasury to be credited to the Loan Fund an amount equal to such recovery, less any legal costs incurred by the bank in such recovery. |
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| (4) Where any 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 provisions of the proviso to sub-section (1), and accordingly, the manager of such bank shall remit such sum to the Deputy Secretary to the Treasury to be credited to the Loan Fund. |
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Sri Lanka Consolidated Acts