Inland Trust Receipts Act 1990

an undertakings to hold the goods in trust for the agency in favour of which it is executed, to mark tue goods or the packages or cases containing them in a specified manner, and to keep the goods in specified premises until the transportation and sale thereof;

an undertaking to hold in trust and to pay to the agency from time to time as received, the proceeds of the sale of those goods or a specified proportion ef such proceeds

an undertaking to insure the goods against all insurable risks to their full insurable value on a reinstatement basis in the name of the agency and in the case of loss, to pay the insurance moneys to the agency in the same manner as the proceeds of the sale ;

an undertaking not to sell those goods or any of those goods except for cash

an undertakings to deliver such of those goods as may for the time being be untransported or, unsold, to or to the order of, the agency upon demand made in writing in that behalf;

an undertaking to permit the agency without prior notice, from time to time, to enter and inspect the preinises in which ‘those goods are kept and to take stock of such of those goods as may be in the premises ;

an undertaking upon the transportion and sale of those goods to deliver to the agency the documents of title ard other transrortaticn documents relating to such gecds, if called upon to do so by the agency ;

an undertaking to store those goods in a specified premises, or warehouse in the name of the agency ;

and undertaking to keep the transportation docu-ments, goods and proceeds relating to the inland trust receipt separate and distinct from any and all other transportation, documents, goods and pro-ceeds of the person by whom the inland trust receipt is executed.

the agency shall, in the event of the seizure of the goods by any other person in execution of any decree of any court, be entitled, upon application made to that court in the action in the course of which the seizure was effected, to an order directing that the goods shall be sold, either by public auction by an auctioneer, selected by the agency and approved ky the court, or in such manner as the court may direct, and in accordance with such direction as may be issued by the court. Upon the gale of such goods the agency shall be entitled to retain out of the proceeds of sale the amount due under the inland trust receipt, and the balance, if any, of the proceeds of sale shall be paid into court and be deemed te be proceed of the sale of the goods in execution of the decree under which they were seized

the agency shall, in the event of the insolvency of the person by whom the inland trust receipt is executed, be entitled to obtain from the court in which the proceedings upon such insolvency ate pending, an order directing that the gonds to which the inland trust receipt relates shall be delivered to the agency and shall be sold either by public auction by an auctioneer selected by the agency and approved by the court, or in such other manner as the court may direct, and in accordance with such directions as may be issued by the court. Upon the sale of such gocds, the agency shall he entitled to retain out of the proceeds of sale the amount due under the inland trust receipt and the balance if any, of the proceeds of sale shall be paid into court to the credit of the assigner of the estate of the insolvent

where any goods are delivered to the agency in compliance with any undertaking referred to in paragraph (e) of subsection (2) of section 2, the agency may sell the goods so delivered, whether after removal thereof, or at the premises in which the goods are kept if the person executing the inland trust receipt consents to a sale at such premises. ‘The agency shall be entitled to retain, out of the proceeds of sale of the goods, the amount due to it under the inland trust reccipt, and the balance, if any, shall be paid to the person by whom the inland trust receipt was executed ;

the person by whom the inland trust receipt was executed shall, if he commits a breach or fails to comply with any undertaking referred to in sub-section (2) of section 2, being an undertaking contained in the inland trust receipt, ke guilty of an offence and shall on cenviction after summary trial by a Magistrat be liable to im-prisonment of either description for a term not exceeding three years or to a fine of an amount not less than the amount of the money stated in the inland trust receipt to be due or to become payable thereunder to the agency, and not exceeding three times that amount.

a licensed commercial bank within the meaning of the Banking Act, No. 30 of 1988 :

the State Mortgage and Investment Bank establish-ed by the State Mortgage and Investment Bank

the Development Finance Corporation of Ceylon established by the Development Finance Corpora-tion of Ceylon Act (Chapter 165) ;

and company, or any Co-operative society in respect of whom an Order has been made under section 6.