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Ord. No. 27/86
Power to grant exemptions.
Deposit-taking company not to take deposits less than specified
sum.
First Schedule.
BANKING
(3) A registered deposit-taking company shall not, without the written per- mission of the Commissioner, repay any deposit within a period of less than 3 months from the date on which the deposit was taken by the company.
(4) No deposit-taking company shall receive money on savings account.
(5) Subject to section 14, a licensed deposit-taking company may take or hold short-term deposits.
(6) Any person who contravenes subsection (1), and every director and every manager of a deposit-taking company which contravenes subsection (2), (3) or (4), commits an offence and is liable—
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(7) Any person who enters into a contract or arrangement, or uses any device or scheme, which has the effect of, or is designed to have the effect of, avoiding subsection (1), (2), (3) or (4) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(8) For the purposes of any proceedings for an offence under subsection (6), if it is proved that a person took deposits on at least 5 occasions within any period of 30 days, that person shall, until the contrary is proved, be deemed to have been carrying on a business of taking deposits.
13. (1) The Financial Secretary may, by notice in the Gazette, exempt any person or class of persons from section 12.
(2) An exemption under subsection (1) shall be subject to such conditions as are specified in the notice.
(3) The Financial Secretary may at any time by notice in the Gazette--
(a) revoke an exemption under subsection (1); or
(b) revoke, vary, or add to, any condition subject to which such exemption is
granted.
14. (1) Subject to subsection (2)———-
(a) a registered deposit-taking company shall not take any deposit from a depositor of a sum less than the amount specified in item I of the First Schedule; and
(b) a licensed deposit-taking company shall not take any deposit from a depositor of a sum less than the amount specified in item 2 of the First Schedule.
(2) A deposit-taking company may take a deposit from a depositor of a sum less than the specified sum applying at the date of that deposit if the amount standing to the credit of the depositor with the company at the time any such deposit is taken is not less than the specified sum applying at the date of that deposit.
(3) Except where a depositor withdraws the whole amount standing to his credit with a deposit-taking company, the company shall not at the time of the withdrawal of any sum permit the amount of the balance standing to the credit of the depositor to be less than the specified sum.
(4) Notwithstanding subsection (3), where a depositor has an amount standing to his credit with a deposit-taking company at a time when the specified sum is amended by being increased, the company may permit the amount of the balance to be reduced by withdrawals to any amount that is not less than the specified sum as it was before being so amended.
BANKING
Ord. No. 27/86
A157
(5) Every director and every manager of a deposit-taking company which contravenes subsection (1) or (3) commits an offence and is liable
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(6) Any person who holds himself out, whether as a broker or agent of a deposit-taking company or otherwise, as being prepared to take from any person, any sum less than the specified sum for the purpose of making a deposit of that sum, or of that sum and other sums, with the company commits an offence and is liable-- (a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(7) Any person who enters into a contract or arrangement, or uses any device
or scheme, which has the effect of, or is designed to have the effect of, avoiding subsection (1) or (3) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
PART IV
LICENSING AND REGISTRATION OF AUTHORIZED INSTITUTIONS AND KEEPING OF REGISTER
15. (1) A company which wishes to carry on, or a body of persons proposing Application for
to form a company for the purpose of carrying on, banking business in Hong Kong banking licence. shall apply to the Governor in Council, through the Commissioner, for a banking licence or, in the case of a body of persons proposing to form a company, for an intimation that a banking licence will be granted to the company upon its incorporation.
(2) There shall be lodged with the Commissioner in respect of an application for
a banking licence or for an intimation that a banking licence will be granted-
(a) a copy of the charter, Ordinance (other than the Companies Ordinance), (Cap. 32.)
statutes, memorandum of association and articles of association, or other instrument, under which the company is or is to be incorporated, which shall be verified in such manner as the Commissioner or the Governor in Council may require; and
(b) such other documents and information as may be required by the Commis-
sioner or the Governor in Council.
(3) After receiving an application for a banking licence, the Commissioner shall forward to the Governor in Council the application and his advice as to whether or not the applicant should be granted a banking licence or, in the case of a proposed company, whether or not the company upon incorporation should be granted a banking licence.
of banking licence.
16. (1) After receiving an application forwarded under section 15 and the Grant or refusal advice of the Commissioner in respect thereof the Governor in Council may-
(a) grant a banking licence or, in the case of a proposed company, intimate his intention to grant a banking licence upon receipt of notice of its incorporation;
(b) grant a banking licence subject to such conditions as he may think proper to attach thereto in any particular case or, in the case of a proposed company, intimate his intention, upon receipt of notice of its incorporation, to grant a banking licence subject to the attachment of such conditions; or