1964-HKRS28-8-31_Part02 — Page 33

Limitations

on aggregate holdings

under

sections 24,

27 and 28.

Deductions

for purposes

of sections

23, 24, 27.

28 and 29.

Proot of

reserved.

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any interest in land mortgaged to the bank to secure a debt due to the bank:

Provided that, if the debtor defaults in the payment of the whole or any part of such debt or of any interest due theroon, such interest in land shall be disposed of at the earliest suitable opportunity, and in any event not later than eighteen months after the debtor defaults or within such longer period as the Commissioner may allow in any particular case.

29. (1) Notwithstanding anything contained in sections 24, 27 and 28-

(a) the aggregate total of-

(1) the amount outstanding of all facilities specified in sub- section (3) of section 24 granted to or on behalf of persons or bodies specified in subsection (4) of that section;

(i) the value of all holdings of share capital specified in section 27; and

(iii) the value of all boldings of interests in land specified in subsection (1) of section 28,

shall not at any time exceed fifty-five per cent of the paid up capital and reserves of the bank; and

(b) the aggregate total of–

(i) the amount outstanding of all facilities specified in sub- section (3) of section 24 granted to or on behalf of persons or bodies specified in subsection (4) of that section:

(i) the value of all holdings of share capital specified in section 27; and

(iii) the value of all holdings of interests in land specified in subsections (1) and (2) of section 28,

shall not at any time exceed eighty per cent of the paid up capital and reserves of the bank.

(2) In assessing the aggregate total which is permissible under sub- section (1) there shall not be taken into account any matter which is excluded from the operation of section 24, 27, or 28 by virtue of any of the provisions thereof or of section 30.

30. For the purposes of sections 23, 24, 27, 28 and 29 there sball be deducted from the paid up capital and reserves of the bank any debit balance appearing in the profit and loss account of the bank.

31. Any bank, if at any time called upon in writing by the Com- missioner so to do, shall satisfy him by the production of such evidence or information as he may require, that the bank is not in contravention of any of the provisions of section 23, 24, 27, 28 or 29.

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32. (1) For the purpose of sections 24 and 25, the expression Definitions. "unsecured" means granted without security, or, in respect of any ad- vanes or credit facility granted or financial guarantee or other liability incurred with security, any part thereof which at any time exceeds the market value of assets constituting that security and the expression "security" shall mean such security as would, in the opinion of the Commissioner, be acceptable to a prudent banker.

(2) For the purpose of sections 27, 28 and 29, "value" means the current book value.

(3) For the purpose of sections 23, 24, 27, 28, 29, 30 and 31, the expression "reserves" means reserves which appear in the accounts of the bank, and does not include any reserves which are represented by the writing down of the value of assets or by provision for the depre- ciation of fixed assets.

33. (1) A bank, within three months after the making of any Alteration in alteration to the memorandum of association, articles of association or constitution

and amalga- other instrument under which it is incorporated, shall fumish to the mation. Financial Secretary particulars of such alteration in writing, verified

by a statutory declaration made by a director of the bank.

(2) A bank shall not, without the prior approval of the Financial Secretary

(a) make any arrangement or enter into any agreement for the sale or disposal of ita business by amalgamation or otherwise; (b) make any reconstruction of its capital; or

(c) make any arrangement or enter into any agreement for the purchase or acquisition of the business of any other bank.

(3) If the Financial Secretary considers that-

(a) any alteration referred to in subsection (1) alters the constitu

tion of any bank in a manner detrimental to its depositors, or (b) any transaction referred to in subsection (2) is put into effect by any bank, whether incorporated or unincorporated, without his approval,

he may exercise such of the powers conferred by subsection (1) of section 13 as may appear to him to be necessary to protect the interests of the depositors of the bank.

34. If any bank considers that it is likely to become unable to meet its obligations or if it is about to suspend payment it shall forth with report all relevant facts, circumstances and information to the Financial Secretary through the Commissioner.

Duty to report inability to meet obliga- tions.

35. (1) All entries in books and accounts kept by banks shall be Use of recorded in the English language and the Arabic system of numerals English

language. shall be employed.