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As enacted
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Part II · Resolution Measures

28. Effect of the transfer of assets and liabilities

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Unless the Central Bank otherwise decides, where the assets and liabilities of the transferor bank have been transferred to a transferee under section 26, with effect from the relevant date-

(a)

the transferee shall have the control and possession of the transferred assets and liabilities of the transferor bank:

Provided however, upon a request made by the transferee, the Central Bank may transfer any assets or liabilities back to the transferor bank, within a period as may be specified at the time of such transfer, where such assets or liabilities do not meet the criteria applicable for the transfer:

Provided further, that the shareholders, depositors and creditors whose interests and rights remain in the transferor bank, shall have no rights or claims in respect of the assets and liabilities transferred to the transferee;

(b)

the licence issued by the Monetary Board under the relevant laws to the transferor bank to carry on business, shall be modified or cancelled, as the case may be, to the extent as is necessary to enable the transferor bank to carry on any remaining part of its business which has not been transferred to the transferee;

(c)

all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature pertaining, or relating to the transferred assets and liabilities of the transferor bank and subsisting, or having effect on the day immediately preceding the relevant date, and to which the transferor bank is a party or which are in favour of the transferor bank, shall, with effect from the relevant date, be deemed to be contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation or other instruments entered into or granted, as the case may be, by the transferee;

(d)

all actions and proceedings of whatever nature instituted by or against the transferor bank pertaining or relating to the transferred assets and liabilities and pending on the day immediately preceding the relevant date, shall, with effect from the relevant date, be deemed to be actions and proceedings instituted by or against the transferee, and may be continued and disposed of accordingly;

(e)

all such officers and other employees of the transferor bank as are connected with such part of the business of the transferor bank as was transferred to the transferee, or all the officers and other employees of the transferor bank, where the entirety of the business of the transferor bank is transferred to the transferee, as the case may be, who are in employment in the transferor bank on the day immediately preceding the relevant date and who are not offered employment by the transferee, shall be entitled to the payment of compensation:

Provided however, where any officer or other employee of the transferor bank is entitled to a payment of compensation, the transferee shall determine the amount of compensation that shall be paid to such officer or employee in consultation with the Commissioner-General of Labour.Such determination shall not affect the right of such officer or employee to claim any other compensation under any other written law.

Read on from s 29

Part III

Sri Lanka Deposit Insurance Scheme

Read on from Part III

Part IV

Financial Sector Crisis Management Committee

Read on from Part IV

Part V

Winding Up of Licensed Bank

Read on from Part V

Schedules