27.
| (1) The owner cultivator or occupier of any agricultural land may obtain a loan from a prescribed bank in respect of such land for any agricultural activity, by creating a mortgage or charge on such land or on any other immovable property which he owns or in which, he has an interest, by the execution in duplicate of an instrument substantially in the prescribed form, or on such terms and conditions as may be determined by the prescribed bank without the execution of such instrument. |
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| (2) Any instrument referred to in subsection (1) shall only be chargeable with a stamp duty equal to one-fifth of the duty chargeable under Schedule A to the Stamps Ordinance for a bond or mortgage of a like nature. Such duty shall be paid on the duplicate of the instrument and the original or counterpart of such instrument shall be exempt from stamp duty, if any. |
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| (3) Every prescribed bank-
| | (a) shall cause to be numbered with consecutive integral numbers, the instruments executed in favour of such bank under this section according to the order in which they are executed ; | | |
| | (b) shall before the fifteenth day of each month deliver or transmit to the Registrar of Lands of the district in which the prescribed bank functions, the duplicate of all such instruments executed in favour of such bank during the preceding month, together with a list of such instruments: | | |
| | (c) shall deliver or transmit to the Registrar of Lands of that district in which the prescribed bank functions, so as to reach such Registrar on or before Wednesday in each week, a list of such instruments executed in favour of such bank during the week ending on the previous Saturday; | | |
| | (d) shall, if any such instrument affects land or immovable property situated in any district, other than that in which the prescribed bank functions, on or before the fifteenth day of the succeeding month, deliver or transmit a copy of the instrument to the Registrar of Lands of the district in which such land or immovable property is situated together with a list of all such instruments as relate to lands or immovable property in such last-mentioned district; and | | |
| | (e) shall, if such instrument is executed by an attorney forward a copy of such power of attorney to the Registrar of Lands of the district in which such land or immovable property is situated together with a copy of that instrument. | | |
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| (4) Any instrument referred to in subsection (1), may be signed in the presence of and the execution of such instrument may be attested by the Manager of the branch or office of the prescribed bank granting the loan or any person holding any prescribed office in such bank and at least one other witness ; and where such instrument is so signed and attested, nothing in section 2 of the Prevention of Frauds Ordinance shall apply thereto. |
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| (5) Any instrument referred to In subsection, (1) may be registered under the Registration of Documents Ordinance as an instrument affecting land. |
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Sri Lanka Consolidated Acts