A132
Ord. No. 29/80
MONEY LENDERS
MONEY LENDERS
Ord. No. 29/80
A133
(Cap. 32.)
Power of Registrar
to enter premises
and inspect books etc.
Offences by money lenders.
or
(2) Subsection (1) shall not apply in relation to any agreem the payment of any sum for or on account of costs, charges or expuses in respect of a loan if-
(a) except where paragraph (b) applies,—
(i) the money lender (whether an individual, a firm or a com- pany registered under the Companies Ordinance) is approved for the purposes of this paragraph by the Registrar, after consultation with the Financial Secretary, by notice in the Gazette or is a member of an association so approved; and
(ii) the terms of the agreement relating to such costs, charges or expenses comply with such restrictions or conditions, if any, in respect of costs, charges or expenses of that kind as may be specially approved for the purposes of this paragraph by the Registrar, after consultation with the Financial Secretary, by notice in the Gazette; or
(b) the terms of the agreement relating to such costs, charges or expenses comply with such restrictions or conditions, if any, in respect of costs, charges or expenses of that kind as may be generally approved for the purposes of this paragraph by the Registrar, after consultation with the Financial Secretary, by notice in the Gazette.
(3) It shall not be lawful for any money lender or his partner, employer, employee, principal or agent or any person acting for or in collusion with any money lender to charge, recover or receive any sum as for or on account of any such costs, charges or expenses (other than stamp duties or similar charges) or to demand or receive any remunera- tion or reward whatsoever from a borrower or intending borrower for or in connexion with or preliminary to procuring, negotiating or obtaining any loan made or guaranteeing or securing the repayment thereof.
(4) If any money or money's worth is directly or indirectly paid or allowed to or received by any person in contravention of this section, the amount or value thereof, to the extent of such contravention and notwithstanding any agreement to the contrary, may be recovered by the borrower from such person or, if such person is the money lender or a partner, employer, employee, principal or agent of the money lender or is in any way acting for or in collusion with him, may be set off against the amount actually lent (and that amount shall be deemed to be reduced accordingly) or may be recovered by the borrower from such person or from the money lender.
28. For the purpose of ascertaining whether the provisions of this Ordinance are being or have been complied with by any money lender, the Registrar or any other person authorized by the Registrar in writing in that behalf may enter any premises where the business of such money lender is being carried on and may demand the production of and inspect the money lender's licence or any books, accounts, documents or writings relating to any loan made by the money lender or relating to his business as a money lender, and may take notes, copies or extracts thereof or therefrom.
29. (1) Any person who carries on business as a money lender-- (a) without a licence; or
(b) at any place other than the premises specified in his licence; or
(c) otherwise than in accordance with the conditions of his licence;
or
during any period when his licence is suspended,
commits an offence.
(2) Any person who makes any false or misleading statement or furnishes any false or misleading information in connexion with any application for a licence or the renewal of a licence commits an offence.
(3) Any person who, being a licensee, fails to give notice under section 17(1) of any change in respect of such licensee, or who, having been required by the Registrar under section 17(2) to furnish any informa- tion in respect of such change, fails to furnish such information or furnishes any false or misleading information, commits an offence.
(4) Any money lender who
(a) fails to make a note or memorandum in writing of an agreement
in compliance with section 18;
(b) fails to give a copy of such note or memorandum to the borrower
in compliance with section 18(1)(a); or
(c) fails to include in or attach to such copy a summary in writing
in compliance with section 18(1)(b),
commits an offence.
(5) Any money lender who demands or accepts security for a loan in any form prohibited by regulations made under section 34 commits an offence.
(6) Any money lender who fails to comply with any demand in writing made by a borrower under section 19 to supply any statement or copy of any document to the borrower or any person specified in the demand commits an offence.
(7) Any money lender who fails to give a surety any information to which the surety is entitled under section 20(1) or in respect of which the surety has made a request by notice in writing under section 20(2) com- mits an offence.
(8) Any money lender who issues or publishes, or causes to be issued or published, any advertisement, circular, business letter or other similar document which contravenes any of the provisions of section 26 commits an offence.
(9) Any money lender who for any of the purposes of his business uses any name other than the name specified in his licence, or a name or description or expression which might reasonably be held to imply that he carries on banking business commits an offence.
fraudulent
30. (1) Any person who by any false, misleading or deceptive state- Offences of ment, representation or promise, or by any dishonest concealment of inducement material facts, fraudulently induces or attempts to induce-
(a) any money lender to lend money to any person or to agree to the
terms on which money is or is to be borrowed;
(b) any person to borrow money from a money lender or to agree
to the terms on which money is or is to be lent,
commits an offence.
(2) Any person who-
(a) wilfully obstructs the Registrar or any person authorized by him in writing in the performance of his functions under section 28;
and obstruction.