2. Section 31 of the State Mortgage and Investment bank law, No 13 of 1975.(herein after referred to as the "principle enactment") is here by amended as follows:"
| (1) in subsection (1) of that section :-
| | (a) by the substitution in paragraph (y) of that subsection, for the words " preceding paragraphs; and ", of the words ''preceding paragraphs;"; | | |
| | (b) by the substitution in paragraph (z) of that subsection, for the words " prescribed undertaking.", of the words " prescribed undertaking; "; and | | |
| | (c) by the insertion, immediately after paragraph (z) of that subsection, of the following new paragraphs :"
| | | " (aa) to purchase, take on lease or exchange, or otherwise acquire any immovable property which the Bank may consider necessary in order to carry on and transact any business of the Bank; and |
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| (2) by the insertion, immediately after subsection (I) of that section, of the following new subsection :"
| | "(1A) Where a loan has been granted by the Bank and the property mortgaged as security for that loan is not encumbered by any mortgage to any person other than the Bank, the Bank may, subject to the other provisions of this Law relating to the grant of loans, grant an additional loan the repayment of which shall be secured by a further mortgage of that property, and such further mortgage shall be deemed to be a primary mortgage. ". | | |
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Sri Lanka Consolidated Acts