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srilawsby aturio
As enacted
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Part III · Creation of Security Rights and Rights of Parties

20. Creation of a security right

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

(1)

A security right including a security right in the nature of a floating charge,attaches when-

(a)

the value is given;

(b)

the debtor has rights in the collateral or the power to transfer rights in the collateral to a third party; and

(c)

(i)

the debtor has signed an agreement that contains a description of the collateral sufficient to enable it to be identified;

or

(ii)

the collateral is in the possession of the secured party or any other person on behalf of the secured party.

(2)

Notwithstanding the provisions of subsection (1), where the parties to the security agreement have specifically agreed to postpone the time of creation, the security right shall attach at the agreed time.

(3)

A security right shall not be enforceable against a third party, unless it has attached in the manner provided for in subsection (1).

Read on from s 21

Part IV

Perfection

Read on from Part IV

Part V

Priorities

Read on from Part V

Part VI

Registration

Read on from Part VI

Part VII

General Provisions

Read on from Part VII

Part VIII

Repeals and Savings

Read on from Part VIII

Part IX

Interpretation

Read on from Part IX