25. Interpretation

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

For the purposes of this Act, unless the context otherwise requires—

“assignment” means the transfer from one person to another, in whole or in part, of any right in an account, chattel paper, document, instrument, or other right to payment;

“chattel paper” means a record that creates a debt and a security interest in, or a lease of, goods;

“credit Information Bureau of Sri Lanka” means the

Credit Information Bureau of Sri Lanka established under section 2 of the Credit

Information Bureau of Sri Lanka Act, No. 18 of 1990;

“collateral” means the property subject to a security interest, and may include movable things of any nature, intangible things of any nature, farm products, fixtures, timber to be cut, and minerals to be extracted, and includes collateral that arises in the future, and collateral located in or outside of Sri Lanka, accounts and chattel paper that have been sold, leased goods, and proceeds;

“judgment creditor” means—

(i)

a person who obtains a right in a secured party’s collateral, or a right to seize a secured party’s collateral, by order of a court or by any authority under prevailing law, other than the

Inland Revenue Act, No. 10 of 2006;

(ii)

the liquidator under the Companies Act, No.

7 of 2007;

(iii)

the receiver under the Insolvency Ordinance

(Chapter 97); and

(iv)

a preferential creditor;

“notice” means a record filed or presented for filing in the Register maintained by the Credit Information

Bureau of Sri Lanka and includes an amendment, continuation statement, and termination statement that are filed or presented for filing. An

“initial notice” is the notice to which an amendment, continuation statement, termination statement, or correction statement may relate;

“National Identity Card” means the national identity card issued under the provision, of the Registration of Persons Act, No. 32 of 1968;

“proceeds” means—

(i)

whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;

(ii)

whatever is collected on, or distributed with respect to, collateral;

(iii)

rights arising out of collateral;

(iv)

to the extent of the value of collateral, claims arising out of the loss or non-conformity of, defects in, or damage to the collateral; and

(v)

to the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or non-conformity of, defects in, or damage to the collateral;

“secured party” means a lender, seller or other person in whose favour a security interest is created under a security agreement, including a person to whom accounts or chattel paper have been sold, and a lessor of goods;

“secured transaction” means any transaction specified in section 2 of the Act;

“value” means the value that a person gives where the person acquires the rights—

(i)

in return for a binding commitment to give credit, whether or not drawn upon; or

(ii)

as security for, or satisfaction of, a pre-existing claim, in whole or in part;

(iii)

by accepting delivery pursuant to a pre-existing contract for purchase; or

(iv)

in return for anything given in exchange, for promise.