44. The capital levy in default shall be a first charge upon all the assets of a defaulter:Provided that-
| (a) such charge shall not extend to or affect any assets sold by the defaulter to a bona fide purchaser for value prior to the seizure of the same in accordance with the provisions of section 110 of the principal Act applied as if those provisions were provisions of this Act in the manner indicated in section 45 of this Act or the vesting of the same under section 47 of this Act; |
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| (b) as regards immovable property, the capital levy shall not rank in priority to any lease or encumbrance created bona fide for value and registered prior to the date of the assessment made in respect of the defaulter; |
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| (c) as regards movable property, the capital levy shall not rank in priority to any lien or encumbrance created bona fide for value prior to the date of default. |
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Sri Lanka Consolidated Acts