67. Providing temporary financial assistance & guarantees by the Board

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Where the Director is satisfied, after examination by himself, or by any officer of the Central Bank or any other person, authorized on that behalf by the Director, of the affairs of any finance company, or upon information received from the finance company that it would be in the interest of depositors to provide temporary financial accommodation to such finance company, the Director shall report accordingly to the Board and the Board may grant a loan or advance to a commercial bank from the Medium and

Long Term Credit Fund established under section 88E of the

Monetary Law Act (Chapter 422), for the purpose of lending to such finance company on such terms and conditions as may be determined by the Board.

(2)

The provisions of section 88A to 88E of the Monetary

Law Act shall, mutatis mutandis, apply to any loan or advance granted to a commercial bank under the provisions of subsection (1).

(3)

The Board may guarantee loans, advances or other accommodation granted to a finance company by credit institutions operating in Sri Lanka.

(4)

In this section “credit institution” means-

(a)

any bank licensed under the Banking Act, No.

30 of 1988;

(b)

any finance company licensed under this Act;

(c)

any agency or institution acting on behalf of the government (whether established by any written law or otherwise) which grants loans and advances or makes investments or accepts deposits from the public;

(d)

any other person declared by the Minister in charge of the subject of Finance, by Order published in the Gazette, to be a banking institution for the purposes of Monetary Law

Act (Chapter 422); and

(e)

any such society registered under the Co-operative

Societies Law, No 5 of 1972.

Read on from s 68