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As enacted
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Part IV · Debt Restructuring Arrangements

45. Debt Restructuring Arrangements: General Conditions

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

(1)

Subject to the provisions of this Act, a debtor who satisfies the eligibility criteria specified in section 46 may make a proposal to all creditors for a Debt Restructuring

Arrangement for the satisfaction or restructuring of the debtor’s debts.

Rescue, Rehabilitation and Insolvency

(2)

A proposal for a Debt Restructuring Arrangement may be made and submitted by a debtor, or on behalf of a debtor by a personal insolvency proposer, in accordance with the provisions of this Part and any provisions as may be prescribed.

(3)

A personal insolvency proposer may also act as a personal insolvency administrator, after the coming into effect of a Debt Restructuring Arrangement.

(4)

In accordance with section 62 and section 63 rules may be made for the regulation and performance of the functions of personal insolvency proposers and personal insolvency administrators under this Part.

(5)

Two or more proposals for a Debt Restructuring

Arrangement, relating to two or more debtors, may be dealt with as one proposal where —

(a)

the personal insolvency proposer considers that they could reasonably be dealt with together because of the financial relationship of the debtors involved; and

(b)

the terms of each of the proposal specify details of how the Arrangements should be administered together, including—

(i)

the treatment of joint and individual assets and the treatment of joint and individual debts;

(ii)

whether the approval of each of the

Arrangement is to be contingent on the approval of another Arrangement;

(iii)

the effect of the failure or early termination of one Arrangement on any other Arrangement;

and

Rescue, Rehabilitation and Insolvency

(iv)

how any joint payments, made by two or more debtors, should be apportioned between the creditors.

Read on from s 46

Part V

Debt Rehabilitation Orders

Read on from Part V

Part VI

Read on from Part VI

Part VII

Personal Insolvency Register

Read on from Part VII

Part VIII

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

Part XII

Read on from Part XII

Part XIII

Read on from Part XIII

Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

Read on from Part XV

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules