Development Finance Bank of Ceylon Act

Arrangement of Sections

1. Short title.

2. Establishment of the Bank.

3. The Bank to be a body corporate.

4. Purposes of the Bank.

5. Power of the Bank.

6. Liability of Shareholders.

7. Authorised share capital.

8. Commencement of business.

9. Management of affairs and business of the Bank.

10. Board of Directors.

10A Repealed.

11. Regulations of the Bank.

12. Application of the provisions of the Companies Ordinance to the Bank.

13. Borrowing from the Government.

14. Borrowing from the International Bank for Reconstruction and Development.

14A. DFCC Bank Debentures and Stock.

14B. Accounts to be laid before Parliament.

15. Accounts.

16. Audit.

16A. Corporation deemed to be a bank within the meaning of the Evidence Ordinance.

16B. Offences.

17. Duty to maintain secrecy.

18. Interpretation.

12 of 1974,

35 of 1955,

8 of 1958,

1 of 1967,

42 of 1982,

25 of 1993,

23 of 1997.

AN ACT to provide for the establishment of the Development Finance Corporation of Ceylon and for matters connected therewith.

[Date of Commencement: 4th October, 1955]

1. Short title.

This Act may be cited as the Development Finance Bank of Ceylon Act.

2. Establishment of the Bank.

(1) There shall be established, in accordance with the provisions of this Act, a Bank (hereinafter referred to as the "Bank”) which—

[S 2(1) am by s 2(1) of Act 23 of 1997.]

(a) shall, until there are Shareholders of the Bank, consist of the Directors for the time being of the Bank, and shall, when there are such Shareholders, consist of the Directors and the Shareholders for the time being of the Bank, and

(b) shall be called the DFCC Bank's.

[S 2(1)(b) subs by s 2(2) of Act 23 of 1997.]

(2) The head office of the Bank shall be in Colombo. Such branch offices of the Bank as the Board of Directors may consider necessary may be established in places in Sri Lanka other than Colombo.

3. The Bank to be a body corporate.

The Bank shall in the name assigned to it by section 2 be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

4. Purposes of the Bank.

(1) The purpose of the Bank shall be—

(a) to assist in the promotion, establishment, expansion, carrying on and modernization, of industrial, agricultural and commercial enterprises, and

[S 4(1)(a) subs by s 2 of Act 25 of 1993; am by s 4(1)(a)
of Act 23 of 1997.]

(b) to encourage and promote the participation of capital, both internal and external, in such enterprises.

[S 4(1)(b) am by s 4(1)(b) of Act 23 of 1997.]

(2) .

[S 4(2) rep by s 4(2) of Act 23 of 1997.]

5. Power of the Bank.

In carrying out its purposes, the Bank may exercise all or any of the following powers—

(i) provide finance in the form of loans with or without security, or by purchasing or subscribing for shares or other securities, or by acquiring any other interest;

[S 5(i) subs by s 2 of Law 12 of 1974; am by s 3(1) of
Act 25 of 1993.]

(ii) underwrite new issues of stocks, shares, bonds, debentures and other securities;

[S 5(ii) subs by s 2 of Law 12 of 1974.]

(iii) guarantee loans from investment sources;

[S 5(iii) subs by s 2 of Law 12 of 1974.]

(iv) nominate a representatives of the Bank to serve on the governing body of any enterprise in which the Bank has a financial interest;

[S 5(iv) subs by s 2 of Law 12 of 1974.]

(v) make funds available for re-investment by selling any investment of the Bank when and as appropriate;

[S 5(v) subs by s 2 of Law 12 of 1974.]

(vi) borrow funds for the purposes of the business of the Bank from sources either in Sri Lanka or abroad and give security for any loans obtained;

[S 5(vi) subs by s 2 of Law 12 of 1974.]

(vii) to provide such services as management, technical secretarial and administrative advice and merchant bank services, and to assist in obtaining management, technical, secretarial, administrative and merchant bank services, to or for industrial, agricultural and commercial enterprises in Sri Lanka;

[S 5(vii) subs by s 3(2) of Act 25 of 1993; am by s 5 of
Act 23 of 1997.]

(viii) act as agents for, and administer the funds of, such statutory bodies, Corporations, companies or other institutions as the Board of Directors may consider conducive to the attainment of the purposes of the Bank;

[S 5(viii) subs by s 2 of Law 12 of 1974.]

(ix) invest idle funds and reserves of the Bank in appropriate securities;

[S 5(ix) subs by s 2 of Law 12 of 1974.]

(x) acquire, hold, take or give on lease or hire, mortgage, pledge and sell or otherwise dispose of any immovable or movable property;

[S 5(x) subs by s 2 of Law 12 of 1974.]

(xi) accept, before the date on which it is due, any payment in respect of a loan granted by the Bank;

[S 5(xi) subs by s 2 of Law 12 of 1974.]

(xii) open deposit accounts with any bank;

[S 5(xii) subs by s 2 of Law 12 of 1974.]

(xiii) subject to such conditions as may be determined by the Board of Directors, to accept, discount, rediscount, buy, sell and deal in, bills of exchange, promissory notes, coupons, drafts, debentures, certificates, scrips, obligations and other instruments and securities, whether negotiable, transferable or not, of industrial, agricultural or commercial enterprises;

[S 5(xiii) subs by s 3(3) of Act 25 of 1993.]

(xiv) give any guarantee or indemnity to, and enter into any arrangements with, the Government, any local authority, or any body corporate or other person in order to obtain any rights, concessions and privileges that may seem to the Bank to be conducive to any object of the Bank;

[S 5(xiv) subs by s 2 of Law 12 of 1974.]

(xv) to issue bonds and debentures, convertible or otherwise and to accept term deposits from any person in such amounts and on such terms and for such periods as may be determined by the Board of Directors;

[S 5(xv) subs by s 3(4) of Act 25 of 1993.]

(xvi) to establish subsidiary companies to assist it in carrying out its purposes and exercising and performing its powers and duties;

[S 5(xvi) ins by s 3(3) of Act 42 of 1982.]

(xvii) to participate in loans, equities, underwriting arrangements and guarantees with approved credit institutions;

[S 5(xvii) ins by s 3(3) of Act 42 of 1982.]

(xviii) to lease, let on hire, sell outright, or sell on a hire-purchase basis warehouses, godowns. stores and buildings, machinery, equipment and other goods;

[S 5(xvii) ins by s 3(3) of Act 42 of 1982.]

(xix) to convert a part or whole of its loans to industrial, agricultural or commercial enterprises and its subscriptions to bonds or debentures issued by any such enterprise into equity capital;

[S 5(xix) ins by s 3(3) of Act 42 of 1982.]

(xx) to receive, in consideration of the functions the Bank may be performing such commission, brokerage, interest, remuneration or fees, as the Board of Directors may, from time to time, determine;

[S 5(xx) ins by s 3(3) of Act 42 of 1982.]

(xxi) make appropriate provision for the welfare of employees or ex-employees of the Bank and of their dependants; and

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