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Limitation on shareholding and holding of interest
in land in the case
of a registered deposit-taking company.
Limitation on aggregate holdings under sections 83, 87 and 89.
Bank deductions
for purposes of
sections 81, 83, 87, 89 and 92.
Deposit-taking company
deductions for the
purposes of sections 81, 84, 88, 90 and 91.
Proof of compliance with sections 81, 82, 83, 84, 87, 88, 89, 90, 91 and 92.
BANKING BILL
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
91. In the case of a registered deposit-taking company the aggregate value of— (a) share capital acquired or held under section 88(1); and
(b) interests in land purchased or held under section 90(1) or (2),
shall not exceed the aggregate amount of its paid-up capital and reserves.
92. (1) Notwithstanding anything contained in sections 83, 87 and 89-—-—-- (a) the aggregate total of
(i) the amount outstanding of all facilities specified in section 83(3) granted to or on behalf of persons or bodies specified in section 83(4);
(ii) the value of all holdings of share capital specified in section 87; and (iii) the value of all holdings of interests in land specified in section 89(1), shall not at any time exceed 55 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 section 83(3) granted to or on behalf of persons or bodies specified in section 83(4);
(ii) the value of all holdings of share capital specified in section 87; and (iii) the value of all holdings of interests in land specified in section 89(1) and (2),
shall not at any time exceed 80 per cent of the paid-up capital and reserves of the bank.
(2) In assessing the aggregate total which is permissible under subsection (1) there shall not be taken into account any matter which is excluded from the operation of section 83, 87 or 89 by virtue of any of the provisions thereof or of section 93.
(3) Every director and every manager of a bank which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
93. For the purposes of sections 81, 83, 87, 89 and 92 there shall be deducted from the paid-up capital and reserves of the bank any loss disclosed in the most recent balance sheet of the bank lodged with the Commissioner under section 60(2).
94. For the purposes of sections 81, 84, 88, 90 and 91 there shall be deducted from the paid-up capital and reserves of the deposit-taking company any loss disclosed in the most recent balance sheet of the deposit-taking company lodged with the Commissioner under section 60(2).
95. (1) Any authorized institution, if at any time called upon in writing by the Commissioner so to do, shall satisfy him by the production of such evidence or information as he may require, that-
(a) in the case of an authorized institution which is a bank, the bank is not in contravention of any of the provisions of section 81, 82, 83, 87, 89 or 92; and
(b) in the case of an authorized institution which is a deposit-taking company, the deposit-taking company is not in contravention of any of the provisions of section 81, 82, 84, 88, 90 or 91.
BANKING BILL
(2) Every director and every manager of an authorized institution which fails or refuses to comply with this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
PART XVI
ADVERTISEMENTS, REPRESENTATIONS AND Use of Title "BANK”
96. (1) Subject to subsection (5), no person shall—
(a) issue, or have in his possession for the purposes of issue, any advertisement which to his knowledge is or contains an invitation to members of the public--
(i) to deposit money; or
(ii) to enter into, or offer to enter into, any agreement to deposit money;
(b) issue, or have in his possession for the purposes of issue, any document
which to his knowledge contains such an advertisement; or
(c) in any other manner issue or make an invitation to members of the public to
do any of the acts referred to in paragraph (a).
(2) Any person who contravenes subsection (1) commits an offence and is liable on conviction upon indictment or on summary conviction to a fine of $10,000.
(3) For the purposes of any proceedings under this section, an advertisement or document in which a person named in the advertisement or document holds himself out as being prepared to take in Hong Kong any deposit shall, subject to sub- section (4), be presumed, unless such named person proves to the contrary, to have been issued by him.
(4) A person shall not be taken to contravene this section by reason only that he issues, or has in his possession for the purposes of issue, to purchasers copies of any newspaper, magazine, journal or other periodical publication of general and regular circulation, which contain an advertisement to which this section applies.
(5) This section shall not apply to
(a) any advertisement to deposit money or to enter into, or offer to enter into,
any agreement to deposit money with an authorized institution; or
(b) any advertisement or invitation, or any document containing any advertise-
C177
Offence to issue advertisements
and documents relating to deposits.
ment or invitation, to which section 4(1) of the Protection of Investors (Cap. 335.) Ordinance would, but for section 4(2)(g) of that Ordinance, apply.
97. (1) Any person who, by any fraudulent or reckless misrepresentation, induces another person-
(a) to deposit money with him or any other person; or
(b) to enter into or to offer to enter into any agreement to deposit money with
him or any other person,
commits an offence and is liable on conviction upon indictment to a fine of $1,000,000 and to imprisonment for 7 years.
(2) For the purposes of subsection (1), "fraudulent or reckless misrepresenta- tion" means--
(a) any statement---
(i) which, to the knowledge of the maker of the statement, was false, misleading or deceptive; or
(ii) which was false, misleading or deceptive and was made recklessly;
Fraudulent inducement to deposit money.
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