TNAG-1724-FCO40-2437-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 146

- 2 -

{

A.

It is our intention that this exemption should

not apply to loans that are both significant and

concessionary.

Bearing in mind that a registered deposit-

taking company is required under the Banking Ordinance to

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.

per cent

I therefore propose that

all concessionary loans which exceed the lower of

$10 million or 10% of the paid up capital and reserves of

the company should be reported in the annual accounts.

Banks will not be affected by this new formula because 100

of their minimum paid up capital and reserves will always

exceed $10 million.

percent

の

6.

сыр

Other amendments required to clause 3 are to

correct a minor drafting error and to clarify first that

the disclosure provisions of the Ordinance cover companies

incorporated by specific ordinances, and secondly that the

maximum aggregate in new section 161B(4B) means the

maximum balance on all relevant loans on an aggregate

basis calculated daily. It is the maximum balance at any

one time which is of interest, not the total amount lent

in the course of the year.