A128
Ord. No. 29/80
Duty of money lender to give
information to surety.
MONEY LENDERS
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(b) the amount of any payment already received by the money
in respect of the loan and the date on which it was made (c) the amount of every sum due to the money lender but unpaid, and the date on which it became due, and the amount of interest accrued due and unpaid in respect of every such sum; and (d) the amount of every sum not yet due which remains outstanding,
and the date on which it will become due.
(2) A money lender shall, on demand in writing by the borrower, supply a copy of any document relating to a loan made by him or any security therefor to the borrower or, if the borrower so requires and on payment by the borrower to the lender of $10, to any person specified in that behalf in the demand.
(3) Subsection (1) or (2) does not apply to a request made by a borrower less than 1 month after a previous request thereunder relating to the same agreement was complied with.
(4) If a money lender to whom a demand has been made under this section fails without reasonable excuse to comply therewith within 1 month after the demand has been made, he shall not, so long as the default continues, be entitled to sue for or recover any sum due under the agree- ment on account either of principal or interest, and interest shall not be chargeable in respect of the period of default.
20. (1) A money lender who makes any agreement for the loan of money in relation to which security is provided shall within 7 days after the making of the agreement give to the surety (if a different person from the borrower)—
(a) a copy of the note or memorandum in writing made under
section 18(1);
(b) a copy of the security instrument, if any; and
(c) a statement in writing signed by or on behalf of the money
lender showing—
(i) the total sum payable under the agreement by the borrower; (ii) the various amounts comprised in that total sum with the date, or the mode of determining the date, when each becomes due.
(2) Without prejudice to subsection (1), a surety may at any time during the continuance of an agreement (whether made before or after the commencement of this Ordinance) in relation to which the security is provided require the money lender by notice in writing to furnish him with a statement in writing signed by or on behalf of the money lender showing-
(a) the total sum paid under the agreement by the borrower;
(b) the total sum which has become payable under the agreement by the borrower but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due; and
(c) the total sum which is to become payable under the agreement by the borrower, and the various amounts comprised in that total sum, with the date, or the mode of determining the date, when each becomes due.
(3) Subsection (2) does not apply to a request made by a surety less than 1 month after a previous request under that subsection relating to the same agreement was complied with.
MONEY LENDERS
Ord. No. 29/80
A129
If a money lender fails to comply with subsection (1) or a req to which subsection (2) applies he shall not be entitled, while the default continues, to enforce the security so far as provided in relation to the agreement.
borrower.
21. (1) Subject to subsection (2), a borrower under any agreement Early for the loan of money by a money lender shall be entitled at any time by payment by notice in writing to the money lender and the payment to the money lender of all amounts payable as principal by the borrower which are outstanding under the agreement, together with interest computed up to the date of such payment, to discharge his indebtedness under the agree-
ment:
Provided that the effective rate of such interest shall not exceed the effective rate at which interest would have been payable under the agree- ment if the borrower had not exercised his right under this section to discharge his indebtedness.
(2) Subsection (1) shall not apply in relation to any loan made by a money lender (whether an individual, a firm or a company registered under the Companies Ordinance) who, at the time the agreement for the (Cap. 32.) loan is made and throughout the continuance of the agreement, is recognized by the Financial Secretary by notice in the Gazette for the purposes of this subsection or is a member of an association so recognized.
22. Any agreement made for the loan of money by a money lender Illegal shall be illegal if it provides directly or indirectly for
(a) the payment of compound interest;
(b) prohibiting the repayment of the loan by instalments; or (c) the rate or amount of interest being increased by reason of any
default in the payment of sums due under the agreement: Provided that provision may be made by any such agreement that if default is made in the payment upon the due date of any sum payable to the money lender under the agreement, whether in respect of principal or interest, the money lender shall be entitled, subject to Part IV, to charge simple interest on that sum from the date of the default until the sum is paid at an effective rate not exceeding the effective rate payable in respect of the principal apart from any default, and any interest so charged shall not be reckoned for the purposes of this Ordinance as part of the interest charged in respect of the loan.
agreements.
unless money
23. No money lender shall be entitled to recover in any court any Loan etc. not money lent by him or any interest in respect thereof or to enforce any recoverable agreement made or security taken in respect of any loan made by him lender licensed. unless he satisfies the court by the production of his licence or otherwise that at the date of the loan or the making of the agreement or the taking
of the security (as the case may be) he was licensed.
PART IV
EXCESSIVE INTEREST RATES
24. (1) Any person (whether a money lender or not) who lends or Prohibition offers to lend money at an effective rate of interest which exceeds of excessive 60 per cent per annum commits an offence.
(2) No agreement for the repayment of any loan or for the payment of interest on any loan and no security given in respect of any such agreement or loan shall be enforceable in any case in which the effective rate of interest exceeds the rate specified in subsection (1).
interest rates.