XN000022-1983-12-02 — Page 3

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FRIDAY, DECEMBER 2, 1983

WHEN THE DEBTOR APPEARS BEFORE THE JUDGE, THE JUDGE WILL EITHER EXAMINE HIM STRAIGHT AWAY OR WILL MAKE AN APPOINTMENT FOR A FURTHER HEARING. HE WILL HAVE POWER TO ALLOW THE DEBTOR TO BE RELEASED, IF UNDER ARREST, PENDING ANY FURTHER HEARING ALTHOUGH HIS RELEASE MAY BE SUBJECT TO CONDITIONS.

AT THE APPOINTED TIME AN EXAMINATION OF THE DEBTOR WILL TAKE PLACE AND THE JUDGE WILL ONLY HAVE POWER TO ORDER IMPRISONMENT IF THE DEBTOR HAS THE ABILITY TO MEET EITHER ALL OR PART OF THE DEBT, BUT HAS FAILED TO DO SO IS FOUND TO HAVE TRANSFERRED HIS ASSETS TO AVOID PAYMENT OF THE DEBT, OR REFUSES TO DISCLOSE HIS ASSETS AND CIRCUMSTANCES.

IF THE JUDGE FINDS THAT THE DEBTOR HAS NO ASSETS AVAILABLE TO SATISFY THE DEBT, WHETHER OR NOT THIS HAS RESULTED FROM EXTRAVAGANT LIVING, HE WILL HAVE NO POWER TO ORDER HIS IMPRISONMENT. IF THE DEBTOR HAS NO MEANS BUT HAS A REGULAR INCOME THE JUDGE WILL BE ABLE TO MAKE AN APPROPRIATE ORDER FOR PAYMENT BY INSTALMENTS.

A GOVERNMENT SPOKESMAN SAID, THE PROPOSALS REPRESENT A COMPROMISE BETWEEN THE EXTREME POSITION OF NO IMPRISONMENT AT ALL AND THE SORT OF PRACTICES THAT PREVAILED IN THE PAST. WHAT WE ARE ANXIOUS TO DO IS TO TRY TO GIVE JUDGEMENT CREDITORS REASONABLE SANCTIONS IN THE CASE OF DEBTORS WHO REALLY HAVE TRIED TO GET AWAY WITHOUT PAYMENT WHEN THEY HAVE ASSETS, AND AT THE SAME TIME TRY TO INTRODUCE PROCEDURES THAT PROTECT THE MAN WHO HAS FALLEN ON HARD TIMES, THE ORDINARY DEBTORS IF YOU LIKE, FROM BEING INCARCERATED WHEN HE SIMPLY CANNOT DO ANYTHING ABOUT THE SUMS WHICH HE OWES.

ANOTHER PROPOSED REFORM IS IN RESPECT OF THE POWER TO IMPRISON PERSONS WHO INTEND TO LEAVE HONG KONG EVEN BEFORE THE ACTION FOR THE MONEY CLAIMED HAS BEEN STARTED.

UNDER THE REVISED LEGISLATION, THIS WILL ONLY APPLY TO PERSONS WHO ARE EITHER ORDINARILY RESIDENT IN HONG KONG, OR WHO CARRY ON BUSINESS IN HONG KONG.

THE REVISED LEGISLATION ALSO INCLUDES A PROVISION VALIDATING ACTION TAKEN PRIOR TO THE HIGH COURT RULING LAST MONTH THAT NO ONE COULD LAWFULLY BE IMPRISONED IN EXECUTION OF A JUDGEMENT DEBT WITHOUT PRIOR ORDER OF A JUDGE.

THE BILL WILL BE PRESENTED TO THE LEGISLATIVE COUNCIL ON DECEMBER 7 AND IS EXPECTED TO RECEIVE ITS THIRD READING ON DECEMBER 21.

ANYONE WHO WISHES TO COMMENT ON ITS PROVISIONS MAY WRITE TO UMELCO, AT SWIRE HOUSE, 12TH FLOOR, CHATER ROAD, HONG KONG OR TO THE ATTORNEY GENERAL'S CHAMBERS AT THE CENTRAL GOVERNMENT OFFICES, LOWER ALBERT ROAD, HONG KONG.

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