XN000022-1990-07-04 — Page 36

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WEDNESDAY, JULY 4, 1990

AGREEMENT

PRIOR UNDER THE PRESENT LAW UNLESS THERE IS A INTEREST SHOULD BE PAID THE CREDITOR CAN RECOVER INTEREST ON THE ONLY IF HE TAKES THE DEBTOR TO COURT.

THAT

DEBT

TO COURT, THE THE DEBTOR

IF THE DEBTOR PAYS THE DEBT BEFORE HE IS TAKEN CREDITOR CANNOT RECOVER ANY INTEREST. THE RESULT IS THAT

RECEIVES THE COURT WHO PAYS LATE, EVEN AS LATE AS THE DAY BEFORE HE DOCUMENT TELLING HIM HE IS BEING SUED, DOES NOT HAVE TO PAY INTEREST.

LAW PRESENT

THEREFORE

THE COMMISSION SPOKESMAN SAID THAT THE PLACES THE SMALL CREDITOR AT A SERIOUS DISADVANTAGE.

THE LAW REFORM COMMISSION HAS CONCLUDED THAT IT IS UNJUST FINANCIAL BURDEN CAUSED BY CREDITORS SHOULD HAVE TO BEAR THE PAYERS.

THAT LATE

SHOULD IT PROPOSES THAT THE CREDITOR WHO IS NOT PAID ON TIME

THE MONEY HE IS OWED BE ENTITLED, BY LAW, TO COMPOUND INTEREST ON

BEEN A PRIOR AGREEMENT ΤΟ UNTIL HE IS PAID, UNLESS THERE HAS CONTRARY.

THE

BEST

THE THE STATUTORY INTEREST RATE SHOULD BE PLUS THREE PER CENT PER ANNUM, AND SHOULD BE AWARDED AT ONE MONTH.

LENDING RATE INTERVALS OF

IN FOREIGN INCLUDED IN THE

THE COMMISSION RECOMMENDS THAT DEBTS PAYABLE ALSO BE CURRENCIES BUT SUBJECT TO HONG KONG LAW SHOULD THE SCHEME. THE STATUTORY INTEREST RATE SHOULD BE APPROPRIATE TO FOREIGN CURRENCY IN QUESTION.

GOVERNMENT THE APPROPRIATE

DEPARTMENT SHOULD DETERMINE THE

APPROPRIATE MARGIN OVER THE RECOGNISED BASE STATUTORY INTEREST SHOULD BE AWARDED AT INTERVALS OF ONE MONTH.

LENDING

COMPOUND

RATES: AND THE AT AND RATES

THE

COMMISSION

CONSIDERS THAT

CERTAIN EXCEPTIONS

ΤΟ

THE

STATUTORY INTEREST SCHEME WOULD BE DESIRABLE:

*

OVERDUE

*

OF LANDLORD

RENTS SHOULD BE EXCLUDED SINCE THEIR RECOVERY INVOLVES SPECIAL POLICIES PECULIAR TO THE AND TENANT.

INTEREST

LAW

ΤΟ

OR

THE PROPOSED RIGHT TO STATUTORY

IS DIFFICULT APPLY TO MONEY RECOVERABLE INDEPENDENTLY OF A CONTRACT, WHERE THERE IS NO CONTRACT AT ALL. QUASI-CONTRACTUAL

THEY BECAUSE OBLIGATIONS SHOULD THEREFORE BE EXCLUDED DIFFICULT TO DETERMINE AND ARE NOT STRICTLY CONTRACT DEBTS.

ARE

*

A DEBT PAYABLE UNDER AN OBLIGATION KINDS OF INDEMNITY INSURANCE SHOULD ALSO THE SCHEME. AN INDEMNIFIER IS NOT IN THE THE ORDINARY DEBTOR SINCE HE IS LIABLE CLAIM HAS BEEN PRESENTED AND HE NEEDS TIME ΤΟ INVESTIGATE AND VERIFY THE CLAIM. IT WOULD NOT BE FAIR TO REGARD HIM WITHHOLDING PAYMENT.

ΤΟ

INDEMNIFY, AND

BE

SAME

то

ALL FROM EXCLUDED

POSITION AS PAY WHEN THE

AS

/APART FROM