33.
| (1) The Authority may, in lieu of the whole or any part of any security which the Authority has already accepted for any loan, accept new security if the new security, either alone or together with any portion of the original security which is to remain, is sufficient for a new loan of an amount equal to the total of the principal and interest still outstanding on account of the original loan. |
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| (2) Where a person to whom a loan has been granted by the Authority on the security of a land mortgaged to the Authority repays a part of that loan and the Authority is satisfied that a portion (hereafter in this subsection referred to as an " adequate portion") of that security is sufficient for the purpose of ensuring the recovery of the balance due on that loan by way of principal and interest, the Authority may release and discharge from the mort- gage such portion of that security as is in excess of the adequate portion. |
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| (3) Where any person to whom a loan has been granted by the Authority on the security of a land mortgaged to the Authority has transferred or transfers a portion of that land to any other person, the Authority may, upon a request made therefor by the transferee, release and discharge from the mortgage that portion of that land if-
| | (a) an apportionment among the transferor and the transferee of the amount outstanding on the loan it made to the satisfaction of the Authority; | | |
| | (b) the transferee undertakes to pay to the Authority such amount of the loan as is apportioned to him and executes a mortgage bond to the satisfaction of the Authority to secure the payment of such amount; and | | |
| | (c) such steps as are necessary in the opinion of the Authority for the purpose of releasing and discharging from the mortgage that portion of the land transferred to the transferee are taken by the transferor and transferee. | | |
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| (4) For the purposes of this Act the amount of the loan which is so apportioned to each such person shall be deemed to be the amount of a loan granted to each such person by the Authority and accordingly the provisions of this Act and of any regulation made thereunder shall apply to and in respect of the amount of such loan and the security furnished therefor. |
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Sri Lanka Consolidated Acts