TNAG-1720-FCO40-2400-Hong-Kong-1987-Review-of-Representative-Government-1988 — Page 77

COMPANIES (AMENDMENT)

Ord. No. 12/88

A45

tion are not more favourable in the case of that person than that or those which it is reasonable to expect the authorized financial institution to have offered to or in respect of a person of the same financial standing as that person but unconnected with the authorized financial institution; or

(b) where the transaction in question does not fall within paragraph (a), the aggregate of the following amounts does not exceed $10,000,000 or an amount equivalent to 10 per cent of the paid up capital and reserves of the authorized financial institution, whichever is the lower-

(i) the maximum amount outstanding, in respect of principal and interest, during the financial year on all loans (other than loans falling within para- graph (a)) made by the authorized financial institu- tion to that person; and

(ii) the amount representing the maximum liability of the authorized financial institution dur- ing the financial year under all guarantees entered into and in respect of every security provided by the authorized financial institution (not being transac- tions falling within paragraph (a)) in connection with loans made to that person.

(4B) In the case of a company which is an authorized financial institution, the accounts of the company shall con- tain a statement showing-

(a) the aggregate of the following amounts as at the end

of the financial year-

(i) the amount outstanding, in respect of princi- pal and interest, on every relevant loan made after 31 August 1984 by the company; and

(ii) the amount representing the maximum liability of the company under all guarantees en- tered into, and in respect of any security provided, by that company in connection with any relevant loan made after 31 August 1984 by any person; and (b) the maximum aggregate of the amounts referred to in paragraph (a) that obtained at any time during the financial year.

(4C) In the case of a company which is the holding company of an authorized financial institution the accounts (or, if group accounts are required to be prepared under section 124 dealing with the authorized financial institution, the group accounts) of the company shall contain a statement showing-

(a) the aggregate of the following amounts as at the end

of the financial year-

(i) the amount outstanding, in respect of principal and interest, on every loan made to an officer of the company (whether or not he was an officer of the