40.
| (1) Every mortgage of land executed in favour of the Authority as security for any loan shall be substantially in a form approved by the Authority. |
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| (2) Any such mortgage as is referred to in subsection (1) may include a covenant that a higher rate of interest than that on which the loan was granted shall be paid, if the borrower fails or neglects to make any payment due on account of interest, principal or otherwise under the mortgage, in full and on the due date. |
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Sri Lanka Consolidated Acts