20142-1911-Ordinances-passed-and-assented-to--Money-lenders-No-16-of-1911 — Page 2

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THE HONGKONG GOVERNMENT GAZETTE, MAY 19, 1911.

HONGKONG.

No. 16 of 1911.

An Ordinance to amend the Law with respect to Persons carrying on business as Money- lenders.

F. D. LUGARD,

LS

Governor,

[19th May, 1911.]

Short title.

Re-opening

of transac- tions of

money- lender.

Be it enacted by the Governor of Hongkong, with the advice and consent of the Legislative Council thereof, as follows:-

1. This Ordinance may be cited as lenders Ordinance, 1911”.

The Money-

2. (1.) Where proceedings are taken in any Court by a money-lender for the recovery of any money lent after the commencement of this Ordinance, or the enforcement of any agreement or security made or taken after the commencement of this Ordinance, in respect of money lent either before or after the commencement of this Ordinance, and there is evi- dence which satisfies the Court that the interest charged in respect of the sum actually lent is excessive, or that the amounts charged for expenses, inquiries, fines, bonus, premium, renewals, or any other charges, are excessive, and that, in either case, the transaction is harsh and unconscionable, or is otherwise such that a Court of Equity would give relief, the Court may re- open the transaction, and take an account between the money-lender and the person sued, and may, notwith- standing any statement or settlement of account or any agreement purporting to close previous dealings and create a new obligation, re-open any account already taken between them, and relieve the person sued from payment of any sum in excess of the sum adjudged by the Court to be fairly due in respect of such "principal, interest, and charges as the Court, having regard to the risk and all the circumstances, may adjudge to be reasonable; and if any such excess has been paid, or allowed in account, by the debtor, may order the cre- ditor to repay it; and may set aside either wholly or in part, or revise, or alter, any security given or agree- ment made in respect of money lent by the money-lender, and if the money-lender has parted with the security may order him to indemnify the borrower or other person sned.

(2.) Any Court in which proceedings might be taken for the recovery of money lent by a money-lender shall have and may at the instance of the borrower or surety or other person liable, exercise the like powers as may be exercised under this section, where proceedings are taken for the recovery of money lent, and the Court shall have power, notwithstanding any provision or agreement to the contrary, to entertain any application under this Ordinance by the borrower or surety or other person liable, notwithstanding that the time for repayment of the loan, or any instalment thereof, may not have arrived.

(3.) On any application relating to the admission or amount of a proof by a money-lender in any bank- ruptcy proceedings, the Court may exercise the like powers as may be exercised under this section when proceedings are taken for the recovery of money.

(4.) The foregoing provisions of this section shall apply to any transaction which, whatever its form may be, is substantially one of money-lending by a money- lender.