Regional Development Banks Act 1997 · As enacted · Part VI · General
48. Debentures to be issued to the Monetary Board to the value of excess net worth
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Where the net worth of the Vesting Bank or Banks is in excess of the contribution made by the Central Bank to the initial capital of a Bank under paragraph (a) of subsection (3)
Central Bank
“Central Bank” means the Central Bank of Sri Lanka established by the Monetary Law Act;
of section 18, such Bank shall within two weeks of the net worth of the Vesting Bank or Banks being accepted by the
Monetary Board under section 47 issue to the Monetary
Monetary Board
“Monetary Board” means the Monetary Board of the Central Bank of Sri Lanka established under the Monetary Law Act;
Board, debentures to the value of such excess, earning interest at arate of twelve per centum per annum.
The Monetary Board shall be entitled to transfer to any other person debentures issued to the Monetary Board under subsection (1), and the transferee of such debentures shall have the same rights as the Monetary Board in respect of such debentures.
It shall be the duty of the acquiring bank to redeem any debentures issued under subsection (1) on the expiry of ten years from the date on which such debentures were issued.
The Central Bank may at any time acquire at par value shares equivalent in value to the value of the debentures issued to the Monetary Board under subsection (1), or any part thereof and where the Central Bank decides to do so the Board shall allot to it shares in the Bank in proportion to that value.