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As enacted
Contents

Part V · Priorities

45. Voluntary subordination

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

(1)

A secured party may, by a security agreement or by a separate agreement entered into between the competing claimants, subordinate the secured party’s security right to any other interest and such subordination shall be effective according to its terms.

(2)

A subordination shall be effective according to its terms between the parties and may be enforced by a third party, if the third party is the person or one of the class of persons for whose benefit the subordination was intended.

Part VI

Registration

Part VII

General Provisions

Part VIII

Repeals and Savings

Part IX

Interpretation