INLAND TRUST RECEIPTS ACT
Arrangement of Sections
1. Short title.
2. Inland Trust Receipt for transportation and sale of goods within the territory of Sri Lanka.
3. Legal effect of Inland Receipts to which this Act applies.
4. Offences by bodies of persons.
5. Approved credit agency.
6. Powers of the Director of Commerce.
7. Sinhala texts to prevail in case of inconsistency.
14 of 1990.
AN ACT to provide for the execution of Inland Trust Receipts in conformity with specified requirements, and for matters connected therewith or incidental thereto.
[Date of Commencement: 6th March, 1990]
1. Short title.
This Act may be cited as the Inland Trust Receipts Act.
2. Inland trust receipt for transportation and sale of goods within the territory of Sri Lanka.
(1) Where upon a statement made to any approved credit agency by any person, that he proposes to purchase goods for the purpose of transportation and sale within the territory of Sri Lanka, such person, for the purpose of making payment for the goods and of meeting expenditure in connection with the transportation and sale and preparation for transportation and sale thereof, obtains from such agency, advances by way of loan, overdraft or otherwise, upon the execution in favour of such agency of a document which complies with the provisions of subsection (2) (which document is hereinafter referred to as "an inland trust receipt”), the provisions of section 3 shall be applicable in relation to that trust receipt and the goods to which it relates.
(2) In order to comply with the provisions of this subsection, a document which is executed by any person in the circumstances mentioned in subsection (1), shall contain the following undertakings on the part of that person in respect of the goods to which the documents relates—
(a) an undertakings to hold the goods in trust for the agency in favour of which it is executed, to mark the goods or the packages or cases containing them in a specified manner, and to keep the goods in specified premises until the transportation and sale thereof;
(b) an undertaking to hold in trust and to pay to the agency from time to time as received, the proceeds of the sale of those goods or a specified proportion of such proceeds;
(c) an undertaking to insure the goods against all insurable risks to their full insurable value on a reinstatement basis in the name of the agency and in the ease of loss, to pay the insurance moneys to the agency in the same manner as the proceeds of the sale;
This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.