35.
| (1) If at any time after the granting of a loan the Board is satisfied
| | (a) that, where the loan has been granted on the mortgage of property-
| | | (i) the property has depreciated in value to such an extent as to endanger the safety of the loan, or |
| (ii) the title of the borrower is such that it ought not to have been accepted as adequate; or |
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| | (b) that due to material mis-statements by the borrower or misapprehension of the actual facts by the Board the loan was granted in circumstances in which it would not have been granted if the true facts had been known; or | | |
| | (c) in any case where the loan has been secured by a mortgage of the interest of the borrower under a lease from the State, that the State intends to cancel or otherwise determine the lease; or | | |
| | (d) that the borrower has failed to comply with, or has contravened, the terms of any loan agreements; | | |
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| (2) "Where an order issued under subsection (1) is not complied with, default shall be deemed to be made in respect of the whole of the unpaid portion of the loan and the interest due thereon up to date, and the provisions of Part V of this Law shall apply accordingly. |
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Sri Lanka Consolidated Acts