9. Enforceability of instruments registered under Chapter IV of the principal enactment

Official English translation. The Sinhala text prevails.

(1)

Where, on the appointed date, an instrument creating-

(a)

a pledge, mortgage or bill of sale of movable property; or

(b)

(i)

an interest in a fixture of any immovable property; or

(ii)

an assignment of a right to payment under a mortgage, charge or lease of any immovable property where the assignment does not convey or transfer the assignor’s interest in the immovable property, which has been registered under Chapter IV of the principal enactment, is in force, such pledge, mortgage or bill of sale of movable property or such interest in a fixture of immovable property or such assignment of a right to payment under a mortgage, charge or lease of immovable property shall, for a period of two years from the appointed date, continue to be enforceable, but shall be required to be registered under the relevant provisions of the Secured Transactions Act,

No. 17 of 2024 as a pledge, mortgage or bill of sale of movable property, or an interest in a fixture of immovable property or an assignment of a right to payment under a mortgage, charge or lease of immovable property prior to the expiration of such period of two years.

(2)

An instrument referred to in subsection (1) shall, on being registered under the Secured Transactions

Act, No. 17 of 2024, be deemed to have been perfected from the date on which such instrument initially became legally enforceable, and the priority which such instrument became entitled to at the time it initially became legally enforceable, shall continue to prevail.

Act, No. 18 of 2024

(3)

An instrument referred to in subsection (1) which is not registered under the Secured Transactions

Act, No. 17 of 2024 prior to the expiration of two years from the appointed date, shall become legally unenforceable after the expiration of such period.

Read on from s 10