Housing Development Finance Corporation of Sri Lanka (Amendment) Act 2003

This Act may be cited as the Housing Development

Finance Corporation of Sri Lanka (Amendment) Act, No. 15

of 2003.

Section 2 of the Housing Development Finance

Corporation of Sri Lanka Act, No. 7 of 1997 (hereinafter referred to as the “principal enactment”) is hereby amended in subsection (1) of that section by the substitution for the words “Housing

Development Finance Corporation of Sri Lanka (hereinafter referred to as “the Corporation”) of the words “Housing

Development Finance Corporation Bank of Sri Lanka”

(hereinafter referred to as the “HDFC Bank of Sri Lanka”).

“Housing Development Finance Corporation of Sri Lanka” and “Corporation” to be referred to as the “Housing Development Finance Corporation Bank” and “HDFC Bank” respectively

In the principal enactment (other than in the long title) and in any other written law, there shall be substituted for the words “Housing Development Finance Corporation of Sri

Every reference to the “Housing Development

Section 3 of the principal enactment is hereby amended in paragraph (d) of subsection (1) of that section, by the substitution for the words “four directors”, of the words “five directors”.

Section 12 of the principal enactment is hereby amended by the repeal of paragraph (a) of that section and the substitution of the following paragraph :—

“(a)

to grant any loan, credit facility or any type of accommodation to any individual, company, partnership, any institute or to Housing Finance

Corporation for housing purposes, for the redemption of residential property in accordance with the directions issued by the Monetary Board under section 76J of the Banking Act, No. 30 of 1988.

Section 13 of the principal enactment is hereby amended by the repeal of paragraphs (a) and (l) of that section and the substitution of the following paragraphs therefor :—

“(a)

to grant loans or financial assistance to any individual, company, partnership, any institute of the

Housing Finance Corporation for housing purposes.

to borrow and raise money on such terms and conditions as may be determined by the Monetary

Section 14 of the principal enactment is hereby amended by the repeal of subsection (2) of that section and the substitution therefor of the following subsection :—

“(2) The General Manager shall be a full time officer of the HDFC Bank of Sri Lanka. He shall be the chief executive officer of the HDFC Bank of Sri Lanka and shall be accountable and answerable to the Chairman and the Board of Directors.”.

Section 15 of the principal enactment is hereby amended by the repeal of subsection (2) of that section and the substitution of the following subsection therefor :—

Housing Development Finance Corporation of

“(2) The Board may, from time to time fix and vary the salaries and allowances of such officers and servants of the Bank, taking into consideration the salaries and allowances payable to employees of state owned banking institutions engaged in similar objectives and operations.”.

Section 17 of the principal enactment is hereby amended by the repeal of subsections (5) and (6) of that section and the substitution of the following subsection therefor :—

“(5) The Bank shall allot any share or register any share in accordance with the directions of the Monetary

Board of the Central Bank of Sri Lanka issued from time to time under section 76J of the Banking Act, No. 30 of 1988 as amended by Act, No. 33 of 1995.”.

Section 22 of the principal enactment is hereby amended as follows :—

in subsection (1) of that section by the substitution for the words “stock, and the debentures and stocks so created and issued shall in this Act be referred to as Housing Development Finance Corporation

in subsection (2) of that section by the substitution for the words “Housing Development Finance

Section 23 of the principal enactment is hereby amended by the substitution for the words “and any Housing

Development Finance Corporation Stock” of the words “and any Housing Development Finance Corporation (Bank)

Securities”.

Section 33 of the principal enactment is hereby repealed.

The following section is hereby inserted immediately after section 38 and shall have effect as section 38A of the principal enactment :—

38A. Directions issued from time to time by the Monetary Board under section 76J of the Banking Act, No. 30 of 1988 shall apply to the HDFC Bank of Sri Lanka in regard to any matter for which no provision has been made in this Act or any regulation made thereunder.”.

Section 40 of the principal enactment is hereby amended by the insertion immediately after paragraph (b) of that section, of the following paragraph :—

“(c)

Every action or proceeding instituted by Housing

Development Finance Corporation of Sri Lanka

Limited under Part IX, (Chapter 401) of the National

Housing Act, No. 37 of 1954 and pending on the day preceeding the date on which the Housing

Development Finance Corporation of Sri Lanka

Limited is deemed to have been dissolved, shall, with effect from that day be deemed to be an action on proceeding instituted by the Corporation and every such action on proceeding may be proceeded with to completion and enforced according to the provisions of Recovery of Loans by Banks (Special

Provision) Act, No. 4 of 1990.

“Directions issued by the

Monetary

Board of the

Central Bank of Sri Lanka.

Housing Development Finance Corporation of

Section 44 of the principal enactment is hereby amended as follows :—

by the insertion immediately before the definition of the expression “Chairman”, of the following definition :—

by the insertion immediately after the definition of the expression “local authority”, of the following definition :—

All contracts, agreements and other instruments of the Housing Development Finance Corporation of Sri

All suits, actions and other legal proceedings instituted by the Housing Development Finance Corporation of Sri

All the rights, liabilities and obligations of the Housing

Every decree, order or judgement entered in favour of or against the Housing Development Finance Corporation of Sri Lanka by any court in any action or proceeding, shall with effect from the date of commencement of this Act, be deemed to be a decree, order or judgement entered in favour of or against the HDFC Bank of Sri Lanka.

Schedule III of the Banking Act, No. 30 of 1988 is hereby amended by the addition at the end of that Schedule of the following new item :—

“(5) Housing Development Finance Corporation

(Bank) of Sri Lanka established by the Housing

Development Finance Corporation of Sri Lanka Act, No.

7 of 1997.”.

Section 47A of the Mortgage Act, is hereby amended in subsection 7 of that section by the insertion immediately after paragraph (c) thereof of the following new paragraph :—

“(cc)

the Housing Development Finance Corporation

(Bank) of Sri Lanka established by the Housing

Development Finance Corporation of Sri Lanka Act,

No. 7 of 1997;”.

In the event of any inconsistency between the Sinhala and Tamil texts of this Act the Sinhala text shall prevail.

Housing Development Finance Corporation of