WEDNESDAY, MAY 29, 1991
11
LAW AMENDMENT AND REFORM BILL INTRODUCED
*
(AMENDMENT) BILL COMMON PRACTICE BY TO SECURE LOANS AND CREDIT
HELD DEPOSITS
WITH THEM BY
THE LAW AMENDMENT AND REFORM (CONSOLIDATION) 1991 SEEKS TO PUT BEYOND DOUBT THE VALIDITY OF A BANKS AND OTHER LENDING INSTITUTIONS FACILITIES BY TAKING CHARGES OVER CASH BORROWERS OR THIRD PARTIES.
BILL
SIR PIERS THE IN
THIS WAS STATED BY THE FINANCIAL SECRETARY, THE HON
OF THE WHEN MOVING THE
SECOND READING
JACOBS, LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
CARD SERVICES LTD A PERSON HE COULD NOT
SIR PIERS SAID IN A CASE CONCERNING CHARGE IN THE UNITED KINGDOM IN 1986, THE COURT HELD THAT, WHEREAS MIGHT TAKE A VALID SECURITY OVER A DEBT DUR BY ANOTHER, TAKE SUCH A SECURITY OVER A DEBT DUE FROM HIMSELF.
DUE DEBT
BY A BANK, THE DECISION AS A BANK DEPOSIT WAS A
HELD SUGGESTED THAT A BANK MIGHT TAKE A VALID SECURITY OVER A DEPOSIT
OR A SUBSIDIARY DEPOSIT TAKING BY A THIRD PARTY, SAY ANOTHER BANK
CHARGE OVER A DEPOSIT COMPANY, BUT IT COULD NOT TAKE A MORTGAGE OR PLEDGED BY THE BORROWER OR A THIRD PARTY WITH ITSELF, HE ADDED.
HAD GENERATED SIR PIERS
CARD SALD
DECISION THE CHARGE
FINANCIAL CONSIDERABLE CONTROVERSY AND CONFUSION WITHIN THE LEGAL AND COMMUNITIES BOTH IN ENGLAND AND HONG KONG.
DUE TO THE UNCERTAINTY, SOME
CIRCUITOUS ESTABLISHED INCONVENIENT, SECURE THEIR LOANS, HE NOTED.
LOCAL LENDING INSTITUTIONS HAD
AND COSTLY ARRANGEMENTS
TO
"THIS IS NOT ONLY DETRIMENTAL TO
ALSO
PLACES
THERE IS NO DOUBT AS
TO THE
HONG
KONG
INSTITUTIONS CUSTOMERS, BUT CONSIDERABLE DISADVANTAGE IN RELATION TO THOSE IN JURISDICTIONS
FINANCIAL SECRETARY SAID.
THE INSTITUTIONS AND
LENDING
THEIR A'T A WHERE
VALIDITY
OF
SECURITY
DEPOSITS,
H
THE
HE POINTED OUT
THAT
THIS
STATE OF
UNCERTAINTY
WAS HIGHLY
UNSATISFACTORY, ADDING THAT BOTH THE HAD BEEN CONSULTED ON THE ISSUE.
LEGAL AND BANKING COMMUNITIES
SIR PIERS SAID THEY SUPPORTED ADDRESSING THIS
LEGISLATIVE AMENDMENT.
DEBATE ON THE BILL WAS ADJOURNED.
PROBLEM WITH A
/12