30. Temporary perfection

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

(1)

A security right which is perfected by possession in-

(a)

an instrument or a certificate that a secured party delivers to the debtor, for the purpose of-

(i)

a sale or an exchange;

(ii)

presentation, collection or renewal;

(iii)

registration of a transfer; or

(b)

a negotiable document of title or goods held by a bailee that is not covered by a negotiable document of title, which document of title or goods the secured party makes available to the debtor, for the purpose of-

(i)

a sale or an exchange;

(ii)

loading, unloading, storing, shipping or trans-shipping; or

(iii)

manufacturing, processing, packaging or dealing with goods in any other manner, prior to their sale or exchange, shall remain perfected, during the first ten days after the collateral comes under the control of the debtor.

(2)

On the expiry of the period of ten days referred to in subsection (1), the security right concerned shall become subject to the provisions of this Act that provide for the perfecting of a security right.

Read on from s 31

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