State Mortgage And Investment Bank (Implementation)



State Mortgage And Investment Bank (Implementation)
AN ACT TO AMEND THE STATE MORTGAGE AND INVESTMENT BANK LAW, NO. 13 OF 1975.

BE it enacted by the Parliament of the Democratic Socialist of Sri Lanka as follows :-
[31st May
, 1994 ]
Short title.

1.This Act may be citied as the State mortgage and Investment Bank (Amendment) Act, No. 10 of 1994.

Amendment of section 20 of the Law No. 13 of 1975.

2. Section 20 of the State Mortgage and Investment Bank Law, No. 13 of 1975 (hereafter referred to as “the principal enactment ‘) is here amended by the repeal of subsection (3) of that section and the substitution of the following subsection therefor:- ”

“(3) The General Manager or any other officer of the Bank specially authorized by the Board shall function as the Secretary to the Board. The General Manager and where the Board has authorized any other officer of the Bank to function as the Secretary to the Board such officer, shall attend and take part in every meeting of the Board, unless the Board otherwise directs, but shall have no right to vote thereat,’

Amendment of section 28 of the principal enactment.

3. Section 28 of the principal enactment is hereby amended by the repeal of the proviso to that section and the substitution of the following proviso therefor:-

” Provided however that the Bank may grant to its employee loans for the purchase of land for the construction of a dwelling house or for the purchase ,construction, repair, renovation of or any extension to a dwelling house or for any other purpose prescribed by the rules made under this Law.”.

Amendment of section 31 of the principal enactment.

4. Section on 31 of the principal enactment is hereby amended is subsection (1) of that section by the repeal of paragraph (m) of that subsection and the substitution of the following paragraph therefor:-

“(m) to borrow or accept deposit from the Government or other institutions, on such terms and conditions as may be mutually agreed upon by them, so however, that the aggregate amount so borrowed or accepted as deposit at any time does not exceed the maximum limit imposed by the Minister;”.

Insertion of new section 31 A in the principal enactment.

5. The following new section is inserted immediately after section 31 of the principal enactment and shall have effect as section 31A of that enactment :

‘Nomination by persons having term deposit.

31A.

(1) Any person over sixteen years of age who has a term deposit in the Bank may nominate person, (hereinafter called a “nominee”), to whom the moneys lying to the credit of such first mentioned person (hereinafter called “nominator”) shall be paid upon his death and, if his death should occur while the deposit exists, the moneys shall be so paid subject to the provisions of this Law.

(2) A nomination made under subsection (1) shall have effect upon the death of the nominator notwithstanding anything in this last will to the contrary,

(3) Any nomination made under subsection (1) shall be deemed to be revoked by the death of the nominee in the lifetime of the nominator or by written notice of revocation signed by the nominator in the presence of a witness (who shall attest the signature of the nominator) or by any subsequent nomination made by the nominator.

(4) The moneys lying to the credit of a person who has made a nomination under subsection(1) in a term deposit shall, in the event of his death, be deemed not to form part of the estate or probate or administration proceeding under the Civil Procedure Code, and the transfer of such property shall not be an offence under that Code.

(5) No payment shall be made by the Bank to any nominee unless the nominee”

(a) submits an affidavit stating that he is the nominee ; and

(b) produces a certificate as to his identity from a person acceptable to the Bank

(6) A payment made subject to the conditions set out in subsection (5) to any nominee of a nominator who has died shall be a complete discharge of the obligations of the Bank in respect of the moneys lying to the credit of such nominator,

(7) Where, upon the death of any person who has a term deposit other than a nominator, there is a sum of money to the credit of such person in the Bank, any officer or per. son who is duly authorized to make payments in respect, of accounts may, if satisfied that such first mentioned person died intestate and that letters of administration to the estate of such person are not required by any written law, pay such sum of money, subject to the provisions of this Act, to the person or persons to whom such sum is required, in accordance with any rule in that behalf, to be paid:

Provided that until rules are made in that behalf, any such sum may be paid to the person legally entitled to the payment thereof. ‘.

Amendment of section 32 of the principal enactment.

6. Section 32 of the principal enactment is hereby amended as follows:-

(1) by the repeal of the proviso to subsection (1) of that section and the substitution of the following proviso therefor: ”

” Provided however, that the Board may authorize the General Manager or any other officer of the Bank to grant loans upto any such sum as may be determined by the Board. ” ; and

(2) by the repeal of subsection (2) of that section and the substitution, of the following subsection therefor :

” (2) All loans granted by the General Manager or other officer of the Bank under the provisions of this section shall be reported to the Board at Us next meeting, “.

Amendment of section 66 of the principal enactment.

7. Section 66 of the principal enactment is hereby amended by the repeal of subsection (1) of that section and the substitution of the following subsection therefor:-

“(1) The common seal of the Bank shall be in the custody of the officer of the Bank authorized by the Board to function as the Secretary to the Board and shall not be affixed to any instrument or document except in the presence of that officer and two directors all of whom shall sign the instrument or document in token of their presence.”.

Amendment of section 74 of the principal enactment.

8. Section 74 of the principal enactment is hereby repealed and the following section substituted therefor:-

“Rules made by the Board.

74.

(1) The Board may make rules for or in respect of all or any of the following matters:-

(a) all matters stated or required by this Law to be prescribed or for which rules are authorized to be made by this Law;

(b) the issue, registration, transfer, redemption and cancellation of debentures and all matters incidental to, or consequential upon, such issue, registration, transfer redemption or cancellation;

(c) the forms to be used for any of the purposes of this Law.

(2) Every rule made under subsection (1) shall be published in the Gazette.”.

Sinhala text to prevail in case of inconsistency.

9. In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail,