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As enacted
Contents

Part VI · Insurance of Deposits

39. Application for insurance of deposits

Official English translation. The Sinhala text prevails.

(1)

Where a scheme for the insurance of deposits has been established, every finance company shall apply to the Board or to the authorised body corporate in the form specified by the Board to insure under such scheme, the deposits held by such finance company.

A finance company, the deposits of which have been insured under such scheme is referred to as an “insured finance company” in this Part of this Act.

(2)

The Board or the authorised body corporate, at its discretion, may accept or reject any application made under subsection (1).

(3)

Every applicant finance company shall pay an initial fee to the Board or authorized body corporate as the case may be, which shall be determined, from time to time by the

Board or the authorised body corporate with the concurrence of the Board.

(4)

An insured finance company shall pay a premium of insurance to the Board or to the authorised body corporate on its deposits.

(5)

If an insured finance company makes any default in the payment of any premium, it shall, for the period of such default, be liable to pay to the Board or to the authorised body corporate interest on the amount of such premium at such rate as may be determined by the Board or the authorised body corporate with the concurrence of the Board, having regard to the losses likely to be incurred by the Board or the authorised body corporate by such default.

Part VII

Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority

Part VIII

Offences and Penalties

Part IX

General