As enacted

Contents

Regulation of Insurance Industry Act 2000 · As enacted · Part II · Registration of Insurers

21. deposit to be paid to the Treasury

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

(1)

Every company applying for registration as an insurer under this Act, shall keep deposited with the Deputy

Secretary to the Treasury, for and on behalf of the Government of Sri Lanka, such sum of money as is determined by the

Board under paragraph (c) of subsection (1) of section 13 of this Act.

(2)

A deposit made under subsection (1) may consist of cash or of Government securities or of Government guaranteed securities, and the value of any securities so deposited shall be taken to be their market value at the date of deposit.

(3)

A deposit made in cash shall be held by the Deputy

Secretary to the Treasury to the credit of the insurer, and shall be returnable to the insurer in cash in the circumstances and in the manner in which under the provisions of this Act such a deposit may be returned, and any interest accruing due on securities deposited under this section by any insurer shall, when it is collected, be paid by the Deputy Secretary to the

Treasury to the insurer.

(4)

An insurer may at any time substitute for the securities deposited with the Deputy Secretary to the Treasury under this section, other Government securities or Government guaranteed securities of equal value assessed at the market rate prevailing at the time of substitution, and the Deputy

Secretary to the Treasury shall, on the written application of any insurer who has made a deposit, invest in Government securities or Government guaranteed securities the whole or any part of the cash received by the Deputy Secretary to the

Treasury on the redemption of any securities deposited by the insurer under this Act.

(5)

The Deputy Secretary to the Treasury shall, if so requested by the insurer, sell any securities deposited with him and either hold the cash realized by such sale as deposit or invest in such Government securities or government guaranteed securities as may be specified by the insurer, the whole or any part of the cash received by him and hold the securities in which the investment is so made as deposit.

Read on from s 22

Part III