XN000022-1981-07-22 — Page 12

WEDNESDAY, JULY 22, 1981

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LICENSED DTCS ENJOY EXEMPT STATUS

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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) APPROVED A MOTION WHICH AMENDS THE FIRST SCHEDULE TO THE MONEY LENDERS ORDINANCE TO INCLUDE LICENSED DEPOSIT-TAK ING COMPANIES.

THIS WILL ENABLE LICENSED DEPOSIT-TAKING COMPANIES TO BE EXEMPTED FROM VARIOUS PROVISIONS OF THE ORDINANCE.

IN MOVING THE MOTION, THE SECRETARY FOR ECONOMIC SERVICES, THE HON P. JACOBS SAID THE MONEY LENDERS ORDINANCE PROVIDES FOR THE CONTROL AND REGULATION OF MONEY LENDERS AND MONEY LENDING TRANSACTION IN ORDER TO AFFORD PROTECTION AND RELIEF AGAINST EXCESSIVE INTEREST RATES AND EXTORTIONATE STIPULATIONS IN RESPECT OF LOANS.

+CERTAIN PERSONS AND LOANS AS LISTED IN THE FIRST SCHEDULE ARE EXEMPTED FROM VARIOUS PROVISIONS OF THE ORDINANCE. BY VIRTUE OF THEIR INCLUSION IN THE FIRST SCHEDULE, DEPOSIT-TAK ING COMPANIES REGISTERED UNDER THE DEPOSIT-TAKING COMPANIES ORDINANCE AND THEIR SUBSIDIAR IES ENJOY EXEMPT STATUS,+

HOWEVER, HE SAID, WITH THE ENACTMENT OF THE DEPOSIT-TAKING COMPANIES (AMENDMENT)(NO. 2) ORDINANCE 1981, WHICH CAME INTO OPERATION ON JULY 1, A NEW STATUS OF LICENSED DEPOSIT-TAK ING COMPANY+ HAS BEEN CREATED.

+ THE ONLY DIFFERENCE BETWEEN REGISTERED AND LICENSED DEPOSIT-TAKING COMPANIES LIES IN THE TYPE OF DEPOSITS THEY ARE PERMITTED TO TAKE. THERE IS NOT NECESSARILY ANY DIFFERENCE BETWEEN THE TYPES OF LENDING THEY DO.

+ IF THE FIRST SCHEDULE TO THE MONEY LENDERS ORDINANCE IS NOT AMENDED, THERE WILL BE AN ANOMALY WHEREBY A LICENSED (AS DISTINCT FROM A REGISTERED) DEPOSIT-TAKING COMPANY WILL BE TREATED AS AN UNLICENSED MONEY LENDER.+

THE AMENDMENT TO THE FIRST SCHEDULE WHICH IS PROPOSED, MR JACOBS SAID, SEEKS TO REMOVE THIS ANOMALY.

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