1987 Ed.]
Banking
[CAP. 155
85
(2) Where the Commissioner varies under subsection (1) the liquidity ratio of any authorized institution, he shall forthwith provide the Financial Secretary with particulars of the variation.
(3) An authorized institution aggrieved by a variation of the liquidity ratio contained in a notice under subsection (1) served on it by the Commissioner may appeal, by notice in writing served on the Commissioner and the Financial Secretary stating the grounds of the appeal, to the Financial Secretary against the variation, but that variation shall take effect immediately, notwithstanding that an appeal has been or may be made under this subsection.
(4) The Financial Secretary shall determine an appeal under subsection (3) by confirming, varying or reversing the variation of liquidity ratio the subject of the appeal.
106. (1) Subject to subsection (2), an authorized institution incorporated in Hong Kong shall not, except with the approval of the Commissioner, which approval shall be subject to such conditions as he may think proper to attach thereto, by whatever means cause the sum total of all amounts secured by way of charge over its assets (excluding contra items) to exceed 5 per cent of the sum total of the value of those assets.
(2) Where, immediately upon the commencement of this Ordinance, the sum total of all amounts secured by way of charge over the assets (excluding contra items) of an authorized institution incorporated in Hong Kong exceeds 5 per cent of the sum total of the value of those assets, the institution shall be deemed to have an approval under subsection (1) 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 (1),
whichever first occurs.
(3) Where any civil proceedings have been instituted against any authorized institution incorporated in Hong Kong, irrespective of whether the proceedings have been instituted before, on or after the commencement of this Ordinance, the institution shall, if those proceedings materially affect, or could materially affect, the financial position of the institution, forthwith notify the Commissioner of those proceedings and provide the Commissioner with such particulars of those proceedings as he may require.
(4) Every director and every manager of an authorized institution which contravenes subsection (1) or (3) 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; and
Authorized institutions not to create certain charges and to notify Commissioner of certain civil proceedings.