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

21. Security right in movable property acquired after the agreement

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 subsection (2), a security agreement may cover any property acquired after entering into such agreement:

Provided that a security right in property acquired after entering into an agreement shall not become an enforceable security right, until the debtor acquires a right to such property.

(2)

A security right shall not be created under a clause in a security agreement covering any property acquired after entering into such agreement-

(a)

in respect of crops that become such crops more than one year after the security agreement has been entered into, except that a security right in crops that is given in conjunction with a lease, purchase or mortgage of immovable property may be created, if so agreed, in crops grown in the property concerned during the term of such lease, purchase or mortgage, as the case may be; or

(b)

in respect of consumer goods other than accessions, unless-

(i)

the debtor acquires rights in them within ten days of the secured party giving value; or

(ii)

the debtor grants a security right in his personal assets to secure a personal guarantee, for a non-consumer transaction.

Read on from s 22

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