A 192
Ord. No. 27/86
BANKING
(3) For the purposes of subsections (1) and (2), the following facilities are specified--
(a) the granting, or permitting to be outstanding, of unsecured advances, un- secured loans or unsecured credit facilities including unsecured irrevocable documentary letters of credit;
(b) the giving of unsecured financial guarantees; and
(c) the incurring of any other unsecured liability.
(4) A registered deposit-taking company shall not grant any of the following facilities to or on hehalf of any person specified in subsection (6) —
(a) the granting, or permitting to be outstanding, of advances, loans or credit
facilities including irrevocable documentary letters of credit;
(b) the giving of financial guarantees; and
(c) the incurring of any other liability.
(5) Nothing in subsection (4) shall prohibit the granting of—
(a) any of the facilities specified in that subsection where the facility is fully secured by a licensed bank or by a bank incorporated outside Hong Kong which is not licensed under this Ordinance and which is a shareholder in the deposit-taking company; or
(b) a secured loan to an employee of the deposit-taking company for the purchase by him of a private residence for himself or his family if no such loan by the deposit-taking company is outstanding to such employee in relation to any other residence.
(6) For the purposes of subsections (1), (2) and (4), the following persons and bodies are specified-
(a) any director of the deposit-taking company;
(b) any relative of any such director;
(c) any employee of the deposit-taking company who is responsible, either individually or as a member of a committee, for determining loan applications;
(d) any relative of any such employee;
(e) any controller (not being an authorized institution) of the deposit-taking
company;
(f) any relative of an individual who is a controller of the deposit-taking
company;
(g) any firm, partnership or non-listed company (other than a firm, partnership or non-listed company which is an authorized institution, or a bank incorporated outside Hong Kong which is not licensed under this Ordinance but is approved by the Commissioner for the purposes of this paragraph) in which the deposit-taking company or any of its directors or any relative of any of its directors is interested as director, partner, manager or agent; and (h) any individual, firm, partnership or non-listed company of which any director of the deposit-taking company or any relative of any such director is a guarantor.
(7) The provisions of this section shall apply to a facility granted to or on behalf of a person or body jointly with another person or body as they apply to a facility granted to or on behalf of a person or body severally.
(8) For the purposes of subsections (2) and (6), a facility granted to or on behalf of any firm, partnership or non-listed company which a person specified in subsection (6)(a), (b), (c), (d), (e) or (ƒ) is able to control, shall be deemed to be granted to that person or on his behalf.
BANKING
Ord. No. 27/86
A193
(9) Every director and every manager of a deposit-taking company which contravenes subsection (1), (2) or (4) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
85. (1) An authorized institution shall not grant to any one of its employees Limitation on any facility specified in subsection (2) to an aggregate amount of such facilities in advances to excess of one year's salary for the employee.
(2) For the purposes of subsection (1) the following facilities are specified--
(a) the granting, or permitting to be outstanding, of unsecured advances, unsecured loans or unsecured credit facilities including unsecured irrevoc- able documentary letters of credit;
(b) the giving of unsecured financial guarantees; and
(c) the incurring of any other unsecured liability.
(3) Every director and every manager of an authorized institution which contravenes this section commits an offence and is liable—
(a) on conviction upon indictment to a fine of $100,000 and to imprisonment
for 12 months; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months,
and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
86. (1) Where the Commissioner—
(a) has reason to believe that an authorized institution has granted to any foreign bank any advances, loans (whether by way of deposit or otherwise) or credit facilities; and
(b) is of the opinion that the extent or manner in which such advances, loans or credit facilities have been made is not in the interests of the depositors of the authorized institution,
he may, by notice in writing to the institution, exercise his powers under this section.
(2) A notice under this section may----
(a) prohibit the authorized institution from granting, after the date of the service of the notice, any advances, loans or credit facilities to the foreign bank specified in the notice and any other foreign bank so specified which the Commissioner has reason to believe is associated with the first-men- tioned foreign bank;
(b) where any moneys are held at call, demand or notice by the authorized institution with any bank specified by the Commissioner in pursuance of his powers under paragraph (a), direct the institution forthwith to demand repayment of such moneys in accordance with the terms upon which they are held;
(c) prohibit the authorized institution from permitting to be outstanding with any bank specified by the Commissioner in pursuance of his powers under paragraph (a)---
(i) any moneys which should have been repaid to the institution by virtue of a direction under paragraph (b);
(ii) any advances, loans or credit facilities repayable or terminable upon the elapse of any time or the occurrence of any event, after the clapse of such time or the occurrence of such event.
employees.
Powers of Commissioner
where moneys placed with foreign bank.