DFCC Bank (Repeal and Consequential Provisions) Act 2014

This Act may be cited as the DFCC Bank (Repeal and Consequential Provisions) Act, No. 39 of 2014.

The DFCC Bank Act (Chapter 165) shall as from such date as may be specified by the Minister by Order published in the Gazette (hereinafter referred to as the “specified date”)

be repealed. Such date shall be a date which is not later than six months from the date of commencement of this Act.

The Minister may, at any time after the date of commencement of this Act, forward to the Registrar of

Notwithstanding anything contained in the

With effect from the specified date, the business of the DFCC Bank shall vest absolutely in the Company.

With effect from the specified date notwithstanding any provision in any other law—

the share capital and any amount lying to the credit of the share premium account, of the DFCC Bank on the day immediately preceding the specified date shall be deemed to be the stated capital of the

all shareholders of the DFCC Bank on the day immediately preceding the specified date shall be deemed to be the shareholders of the Company as at the specified date and the shares held by such shareholders in the Company shall be identical in number to that held by them in the DFCC Bank on the day immediately preceding the specified date and all share certificates issued by the DFCC Bank shall be read and construed as if such share certificates were share certificates issued by the Company;

all securities of any kind issued by the DFCC Bank and outstanding on the day immediately preceding the specified date shall from the specified date be deemed to be securities issued by the Company;

the Chairman, directors, officers, employees and servants of the DFCC Bank holding office on the day immediately preceding the specified date shall be deemed to be the Chairman, directors, officers, employees and servants of the Company with effect from the specified date and such Chairman, directors, officers, employees and servants shall continue to hold office in the Company on terms and conditions enjoyed by them under the DFCC

all contracts, deeds, bonds, agreements, guarantees, powers of attorney, grants of legal representation and other instruments of whatever nature of the

unless specifically revoked or substituted in the manner provided for in any other law, all approvals or licences granted to the DFCC Bank by the

any account maintained between the DFCC Bank and any other person in or outside Sri Lanka including the Government of Sri Lanka, its departments and statutory bodies on the day immediately preceeding the specified date, whether it be an asset or liability of such Bank shall be deemed with effect from the specified date to be an account between the Company and that other person with the same rights and subject to the same obligations and incidents (including rights of set off) as would have been applicable thereto if the account between the DFCC Bank and that other person had continued and so that any instruction,

any mortgage, security or indemnity held by the

the custody of any document, goods or other property held by the DFCC Bank on the day immediately preceding the specified date as bailee for any other person shall be deemed with effect from the specified date to be a document, goods or property in the custody of the Company as a bailee for such other person and the rights and obligations of the DFCC Bank under any contract of bailment relating to such document, goods or property shall be deemed to be the rights and obligations of the

any listing of shares or securities of any kind whatsoever issued by the DFCC Bank on a stock

all reserves maintained by the DFCC Bank for the purpose of the provision of any law, regulatory requirement or otherwise, on the day immediately preceding the specified date shall be deemed with effect from the specified date to be reserves of the

(i)

all applications, actions, proceedings or appeals of whatever nature instituted under the provision of any law by or against the DFCC Bank and pending on the day immediately preceding the specified date shall be deemed as from the specified date, to be applications, actions, proceedings or appeals instituted by or against the Company and may be continued accordingly;

any pension fund, gratuity fund or unfunded liability in respect of a pension, gratuity or other liability relating to post employment benefit to any employee or former employee of the DFCC Bank and existing on the day immediately preceding the specified date shall be deemed as from the specified date, to be a pension fund, gratuity fund or such liability as the case may be, of the Company in respect of such employee or former employee;

where the DFCC Bank on the day immediately preceding the specified date was a contributor to any provident fund approved by the Commissioner of Labour for the benefit of its employees, the

all tax credits, refunds, losses, concessions, reliefs, benefits and liabilities of the DFCC Bank subsisting on the day immediately preceding the specified date shall be deemed as from the specified date, to be tax credits, refunds, losses, concessions, reliefs, benefits and liabilities of the Company;

all judgments, decrees or orders entered in favour of, or against the DFCC Bank by any Court in any action or proceeding shall be deemed with effect from the specified date, to be judgments, decrees or orders entered in favour of, or against the

all rights to intellectual property including trademarks, patents, softwares subsisting in favour of the DFCC Bank on the day immediately preceding the specified date shall be deemed as from the specified date, to be such rights in favour of the Company.

Notwithstanding the repeal of the DFCC Bank Act

(Chapter 165) by section 2 of this Act, the provisions of subsection (2) of section 10 and section 14 of the aforesaid repealed Act shall from and after the specified date, continue to be operative and of full force and avail in law as if such

Act had never been repealed, until the loans so guaranteed by the Government of Sri Lanka in terms of such sections are repaid in full and no further. Every loan guaranteed as aforesaid prior to the specified date and subsisting on the day immediately preceding the specified date, shall as from the specified date continue to subsist as if the loans so guaranteed were loans raised by the Company.

With effect from the specified date, every reference to the DFCC Bank in any Act, regulation, notification, contract, instrument, record, share certificate, document, deed, bond, agreement, guarantee, power of attorney, grant of legal representation and other instruments of whatever nature shall be deemed to be a reference to the Company to give effect to the provisions of this Act.

For the provisions of section 5 and subsection (1) to take effect, it shall not be necessary to replace the name the

The Minister may make regulations for the purposes of facilitating the vesting of the business of the

Every regulation made by the Minister under subsection (1) shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

Every regulation made under subsection (1) shall as soon as convenient be placed before Parliament for approval.

Notice of the date on which the regulation is disapproved shall be published in the Gazette.

In the event the Company formed under the provisions of this Act merges or amalgamates with any other company under the provisions of Part VIII of the Companies Act, No. 07

of 2007 to carry on business as a licensed commercial bank under the licence issued by the Monetary Board, section 6 of this Act shall mutatis mutandis continue to apply.

In the event of any inconsistency between the

Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

For purposes of this Act, unless the context otherwise requires—

“Banking Act” means the Banking Act, No. 30 of 1988 as amended from time to time;

“Business” includes the business carried on by the

DFCC Bank as a licensed specialized bank, as at the specified date;

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DFCC Bank (Repeal and Consequential

Provisions) DFCC Act, No. 39 of 2014

“Company” means the company referred to in the paragraph (b) of subsection (2) of section 3;

“Controller of Exchange” means the head of the

Department of Exchange Control of the

Central Bank, established by the Monetary

Board under the Exchange Control Act

(Chapter 423);

“DFCC Bank” means the DFCC Bank established by the DFCC Bank Act as amended from time to time (Chapter 165);

“Director of Bank Supervision” means the head of the Department of the Bank Supervision of the Central Bank of Sri Lanka established by the Monetary Law Act (Chapter 422);

“Monetary Board” means the Monetary Board of the Central Bank of Sri Lanka established under the Monetary Law Act (Chapter 422);

“Provincial Council” means a Provincial Council established by Chapter XVIIA of the

Constitution;

“Securities and Exchange Commission” means the Securities and Exchange Commission of Sri Lanka established by the Securities and Exchange Commission of Sri Lanka

Act, No. 36 of 1987;

“Urban Development Authority” means the Urban

Development Authority established by the

Urban Development Authority Law, No. 41

of 1978.

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DFCC Bank (Repeal and Consequential

Provisions) DFCC Act, No. 39 of 2014