61. Entitlement to damages for incorrect filing

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

(1)

Where any person without a reasonable cause-

(a)

files a financing statement confirming the existence of a security right under an agreement, which in fact does not exist; or

(b)

files a financing statement confirming that the debtor has consented to the filing of such financing statement, when in fact the debtor has not consented to such filing, the debtor shall have a right to recover damages from that person for any loss or damage caused to the debtor that was reasonably foreseeable as likely to have resulted from such filing.

(2)

Where a secured party fails to forward a copy of the verification statement to the debtor within ten working days of receiving a copy of the same under subsection (2) of section 52, the debtor shall have a right to recover damages from such person for any loss or damage that was reasonably foreseeable as likely to result from such failure.

Read on from s 62

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