Recent pur
of ceram TANGLO.
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(3) The Legislative Council may by resolution alter the pate specified in subsection (1):
Provided that in relation to any agreement for the repayment of any loan or for the payment of interest on any loan which is in force at the date when such rate is so altered, the raté so specified as at the coming into force of such agreement shall continue to apply,
(4) Any person who commits an offence under this section shall be liable to a ine of $100,000 and to imprisonment for 2 years.
25. (1) Subject to section 24(2), where—
(a) proceedings are taken in any court by any person (whether a money lender or not) for the recovery of any money lent or the enforcement of any agreement or security in respect of any loan; and
(6) subject to subsection (). (here is evidence which satisfies the
court that the transaction is extortionate,
the court may reopen the transaction so as to do justice between the parties having regard to all the circumstances, and, for that purpose, make Buch orders and give such directions in respect of the terms of the trans- action or the rights of the parties thereunder as the court may think fit. (2) For the purposes of this section, a transaction is extortionate if- (a) it requires the debtor or a relative of his to make payments (whether unconditionally or on certain contingencies) which are grossly exorbitant; or
(6) it otherwise grossly contravenes ordinary principles of fair
dealing.
(0) Any agreement for the repayment of a loan or for the payment of interest on a loan in respect of which the effective rate of interest exceeds 48 per cent per annuin shall, having regard to that fact alone, be presumed for the purposes of this section to be a transaction which is extortionate; but except where such rate exceeds the rate specified in section 24(1), the court may declare that any such agreement is not extortionate for the purposes of this section if, having regard to all the circumstances relating to the agreement, the court is satisfied that such rate is not unreasonable or unfair.
(4) la determining whether a transaction is extortionate for the purposes of this section, regard shall be had to such evidence as ES adduced conceming-
{2) interest rates prevailing at the time it was made;
(b) the factors mentioned in subsections (3) and (6); and
(c) any other relevant considerations.
(5) Factors applicable under subsection (4)(b) in relation to the debtor include –
(a) his age, experienos, business capacity and state of health; and (b) the degree to which, at the time of entering into the transaction. be was under financial pressure, and the nature of that pressure. (6) Factors applicable under subsection (4)(8) in relation to the lender or other person by whom the proceedings are taken include-
(a) the degree of risk accepted by the lender, having regard to the
nature and value of any security provided;
(5) his relationship to the debtor;
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(c) whether or not a specious cash price was quoted for any goods
or services included in the transaction; and
(d) where one or more other transactions are to be taken into account, the question how far any such other transaction was reasonably required for the protection of the debtor or the lender, or was in the interest of the debtor.
Any court in which proceedings might be taken for the recovery of any load or security in respect of a loan shall bare and may at the instance of the debtor or any surety exercise the like powers as may be cxcrcised under this section where proceedings are taken for the recovery of a loan; and the court may entertain any application under this sub- section by the debtor or surety notwithstanding that the time for repay- ment of the loan or any instained! thereof has not arrived,
(8) On any application relating to the admission or amount of a proof by a money lender in any bankruptcy proceedings, the court may exercise the like powers as may be exercised under this section where proceedings are taken for the recovery of money,
(9) The Legislative Council may by resolution alter the rate specified in subsection (3) but, in relation to any agreement referred to in that subsection which is in force at the date when such rate is so altered, the rate so specified as at the coming into force of such agreement shall continue to apply.
(10) to this section "debtor" means any person primarily liable for the repayment of a loan or for the payment of interest in respect of a Jone.
PART V
GENERAL
advertisemeIUI,
26. (1) A money leader shall not for the purpose of his business as Reweb__ such issue or publish or cause to be issued or published any advertise matter lending ment, circular, business letter or other similar document which does not show the name of the money lender as specified in his licence in such manner as to be not less conspicuous than any other pame.
(2) Where any advertisement, circular, business letter or other similar document issued or published by or on behalf of a mouey lender purporti Le indicate the terms of interest on which he is willing to make loans or any particular loan, such advertisement, circular, business letter or other document shall show the interest proposed to be charged—
(a) subject to section 24(1), as a rate per cent per annum; and
(b) în auch manner as to be not less conspicuous than any other
malter mentioned therein.
(3) A money lender shall not for the purposes of his business ag such issue or publish or cause to be issued or published any advertisement, circular, business letter or other similar document containing a name or description or expression which might reasonably be held to imply that he carries on banking business.
27. (0) Subject to subsection (2), any agreement eglered into between charges for
a money lender and a borrower or intending borrower for the payment by expenses
the borrower or intending borrower to the money lender of any sum for not recoverable, or on account of costs, charges or expenses (other than stamp duties or similar duties) incidental to or relating to the negotiations for or the granting of the loan or proposed loan or the guaranteeing or securing of the repayment thereof shall be illegal.