TNAG-1733-FCO40-2446-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 84

MONEY LENDERS (AMENDMENT) BILL 1988

THE FINANCIAL SECRETARY moved the Second Reading of 'A Bill to amend the Money Lenders Ordinance'.

He said: sir,

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move that the Money Lenders (Amendment) Bill/938

be read a second time.

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The Money Lenders Ordinance was enacted in 1980

principally to curb loansharking. It provides a a framework

for the licensing of money lenders,

lenders, the control of money

lending transactions, and the prohibition of excessive

interest rates. In the operation of the Ordinance over the

years, a number of weaknesses has emerged. Experience has

also shown that certain genuine commercial

genuine commercial transactions

have been caught even though they were not intended to be,

and indeed, ought not to be, caught by the provisions of

the Ordinance. The purpose of this Bill is to remedy these

problems.

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The first set of amendments seeks to simplify

the licensing procedure. An application for a money

lender's licence

licence is determined by a licensing court

comprising a magistrate and two assessors. At present, a

hearing by the full court is required, whether or not an

objection is made to the application. As an unopposed

application is invariably granted, it is proposed that such

applications should be dealt with by a magistrate sitting

alone.