(Cap. 361.) (Cap. 333.)
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(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 bank within the meaning of this Ordinance or which is, additionally or alternatively, a bank 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 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
(e) 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) For the purposes of subsection (6)—
"non-listed company"-
(a) in relation to any time prior to the day appointed under section 27 of the Stock Exchanges Unification Ordinance, means a company not listed on a stock exchange under section 25 of the Securities Ordinance;
(b) on and after that day, means a company not listed on the Unified Exchange;
"relative" means→→→
(a) any ascendant or descendant and the spouse and the parents, brothers and
sisters of the spouse of any such ascendant or descendant;
(b) any brother or sister, aunt or uncle and any nephew or niece,
and, for the purposes of this definition, any step-child shall be deemed to be the child of both its natural parent and of its step-parent and any adopted child to be the child of the adopting parent, and a spouse shall include anyone living as such.
(8) 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.
(9) This section shall not apply to the purchase of telegraphic transfers.
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(10) For the purpose of subsections (2) and (6), a facility granted to or on behalf of any firm, partnership or non-listed company which a director of a deposit-taking company or a relative of such director is able to control, or to or on behalf of a business or undertaking of which a director of a deposit-taking company or a relative of such director is the sole proprietor, shall be deemed to be granted to or on behalf of such director or relative of such director.
(11) 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 or permit to be outstanding to Limitation on any one of its employees unsecured advances, unsecured loans or unsecured credit advances to
employees. facilities to an aggregate amount of such advances, loans or facilities in excess of one year's salary for any such employee.
(2) 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) An authorized institution shall not—
Authorized institution not to
(a) engage, whether on its own account or as agent for another person, in any engage in trade,
wholesale, retail, import or export trade; or
(b) except as permitted by subsection (3) or (4) or section 87, 88, 89, 90 or 91 and except to the extent of such interest as an authorized institution may acquie in the course of the satisfaction of debts due to it, have a direct interest in any commercial, agricultural, industrial or other undertaking. (2) Subject to subsections (3) and (4), any interest in any commercial, agricul- tural, industrial or other undertaking acquired by an authorized institution in the course of the satisfaction of a debt due to it shall be disposed of at the earliest suitable opportunity and in any event not later than 18 months after it was acquired or within such further period as the Commissioner may allow in any particular case.
(3) An authorized institution may, with the Commissioner's approval, have a direct interest in a commercial undertaking.
(4) Where, immediatley upon the commencement of this Ordinance, an author- ized institution has a direct interest in a commercial undertaking, it shall be deemed to have an approval under subsection (3) in respect of this undertaking until—
(a) the expiration of 3 months after that commencement, or such further period
as the Commissioner may allow in any particular case; or
(b) it receives an approval under subsection (3) in respect of that undertaking,
whichever first occurs.
(5) Every director and every manager of an authorized institution which contravenes subsection (1) or (2) commits an offence and is liable—
etc.