XN000022-1988-02-10 — Page 16

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WEDNESDAY, FEBRUARY 10, 1988

AS TO THE AMENDMENTS, HE SAID THAT CLAUSE 3 OF THE BILL WOULD AMEND SECTION 161B OF THE ORDINANCE TO PROVIDE A LIMITED EXEMPTION ΤΟ AUTHORISED FINANCIAL INSTITUTIONS FROM THE REQUIREMENT ΤΟ GIVE PARTICULARS OF LOANS TO DIRECTORS AND OTHERS IN THE ANNUAL ACCOUNTS.

HE POINTED OUT THAT IT WAS THE GOVERNMENT'S INTENTION THAT THIS EXEMPTION SHOULD NOT APPLY TO LOANS THAT WERE BOTH SIGNIFICANT AND CONCESSIONARY.

"BEARING IN MIND THAT A REGISTERED DEPOSIT TAKING COMPANY IS REQUIRED UNDER THE BANKING ORDINANCE ΤΟ HAVE A MINIMUM PAID UP CAPITAL OF $10 MILLION AND A LICENSED DEPOSIT TAKING COMPANY OF $75 MILLION, IT HAS BEEN SUGGESTED THAT FOR SUCH COMPANIES, LOANS BELOW $10 MILLION MAY BE SIGNIFICANT, MR JACOBS SAID.

"

HE THEREFORE PROPOSED THAT ALL CONCESSIONARY LOANS WHICH EXCEEDED THE LOWER OF $10 MILLION OR 10 PER CENT OF THE PAID UP CAPITAL AND RESERVES OF THE COMPANY SHOULD BE REPORTED IN THE ANNUAL ACCOUNTS,

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BANKS WILL NOT BE AFFECTED BY THIS NEW FORMULA BECAUSE 10 PER CENT OF THEIR MINIMUM PAID UP CAPITAL AND RESERVES WILL ALWAYS EXCEED $10 MILLION, HE ADDED.

4+

+

AS FOR OTHER AMENDMENTS TO CLAUSE 3 MR JACOBS SAID THEY WERE REQUIRED TO CORRECT A MINOR DRAFTING ERROR.

THEY WERE ALSO REQUIRED TO CLARIFY, FIRSTLY, DISCLOSURE PROVISIONS OF THE ORDINANCE COVERED COMPANIES BY SPECIFIC ORDINANCES AND, SECONDLY, THAT THE MAXIMUM NEW SECTION 1618(4B) WOULD MEAN THE MAXIMUM BALANCE LOANS ON AN AGGREGATE BASIS CALCULATED DAILY.

IT IS THE MAXIMUM BALANCE AT ANY ONE INTEREST, NOT THE TOTAL AMOUNT LENT IN THE COURSE ADDED.

I

ON

THAT THE INCORPORATED AGGREGATE IN

ALL RELEVANT

TIME WHICH IS OF OF THE YEAR," HE

TURNING TO CLAUSE 4 OF THE BILL MR JACOBS SAID IT INSERTED A NEW SECTION 161BA REQUIRING AUTHORISED FINANCIAL INSTITUTIONS AND THEIR HOLDING COMPANIES TO MAINTAIN A REGISTER REFERRED TO IN SECTION 1618.

OF THE

OF TRANSACTIONS

HE SAID IT ALSO REQUIRED A STATEMENT

PARTICULARS OF SUCH TRANSACTIONS TO BE MADE AVAILABLE FOR PUBLIC INSPECTION FOR A CERTAIN PERIOD.

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IT IS OUR INTENTION THAT THE GENERAL PUBLIC SHOULD BE ABLE TAKE FULL ADVANTAGE OF THIS RIGHT OF INSPECTION OF THE REGISTER, SAID.

TO

1

HE

/HOWEVER, MR JACOBS