Skip to content
As enacted
Contents

Part II · Payment, Clearing and Settlement Systems and Money Services

8. Creditor Process

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

(1)

A security credited to a securities account may be made subject to creditor process or insolvency proceedings by or for the benefit of a creditor of the securities account holder, only to the extent of the interest of the securities account holder and subject to any adverse claim to satisfy a debt of the securities account holder.

(2)

Without prejudice to the generality of subsection (1), a security credited to a securities account held by a customer, may not be subject to creditor process or insolvency proceedings by or for the benefit of a creditor of the dealer direct participant authorized to act in the customer’s securities account, to satisfy any debt of that dealer direct participant.

(3)

The interest of a debtor in a security may be reached only by creditor process duly served on the Central Bank.

The Central Bank shall comply with any creditor process duly served on it.

Part III

Part IV

Miscellaneous Provisions