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Part III · Debt Protection Moratorium Order

42. Obligations of debtors during a Debt Protection Moratorium

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

(1)

During a Debt Protection Moratorium, a debtor shall-

(a)

inform the Official Receiver if there is any material change in the debtor’s circumstances or financial position;

(b)

make any payment due in relation to an ongoing liability as it falls due to be paid during the

Moratorium period;

(c)

not obtain additional credit, either alone or jointly with any other person, that at any one

Rescue, Rehabilitation and Insolvency point in time collectively exceeds one hundred thousand rupees, or such higher amount as may be prescribed;

(d)

not dispose of any assets other than in the normal course of business carried on by the debtor or in the normal family affairs of the debtor; and

(e)

co-operate with the Official Receiver in a reasonable manner.

(2)

In addition to the obligations specified in subsection (1), during a Debt Protection Moratorium, a debtor is subject to any relevant obligations of the debtor's specified in section 32 which may reasonably apply to the circumstances of a

Debt Protection Moratorium.

(3)

Any action contrary to subsection (1) shall be null and void.

Part IV

Debt Restructuring Arrangements

Part V

Debt Rehabilitation Orders

Part VI

Part VII

Personal Insolvency Register

Part VIII

Part IX

Part X

Compromises

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Part XII

Part XIII

Part XIV

Cross - Border Insolvency

Part XV

Part XVI

Part XVII

Schedules