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srilawsby aturio
As enacted
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Part V · Winding Up of Licensed Bank

83. Setting off and netting

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

(1)

Anything contained in the provisions of this Act and any decision taken thereunder shall not prevent or prohibit the setting off, by operation of the law, of obligations between a licensed bank subject to winding up and its contractual counterparties.

(2)

In determining the rights and obligations between a licensed bank subject to winding up and its contractual counterparties, close-out netting and set off provisions contained in financial contracts between such licensed bank and the respective contractual counterparties shall be taken into consideration.

(3)

The net termination value determined in accordance with a financial contract between the licensed bank subject to winding up and the respective contractual counterparty, shall be a claim of such licensed bank on the counterparty, or shall be admitted after its registration as a claim of the counterparty on the licensed bank under the provisions of section 79.

(4)

For the purposes of this section, "net termination value"

means the net amount obtained after setting off the mutual obligations between the parties to a financial contract in accordance with the terms and conditions thereof.

(5)

The Central Bank shall specify the matters pertaining to setting off and netting including financial contracts, by issuing directions, from time to time.

Read on from s 84

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