1964_BANKING_ORDINANCE — Page 53

52

CAP. 155]

Banking

[1987 Ed.

Authorized

institution to notify

Commissioner

when it ceases to

take deposits.

Duty to report inability to meet obligations.

Examination by

authorities

outside Hong Kong.

Amalgamation, etc. requires approval.

3/90528

A

66. (1) An authorized institution which ceases to carry on the business of taking deposits or, as the case may be, banking business, shall forthwith notify the Commissioner in writing of that fact.

(2) Every director and every manager of an authorized institu- tion which fails to comply with this section commits an offence and is liable on conviction upon indictment or on summary conviction to a fine of $10,000.

67. (1) If any authorized institution is likely to become unable to meet its obligations or if it is about to suspend payment it shall forthwith report all relevant facts, circumstances and information to the Commissioner.

(2) Every director and every manager of an authorized institu- tion which fails without reasonable excuse to comply with subsec- tion (1) 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 impri- sonment 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.

68. The appropriate recognized banking supervisory authority of a place outside Hong Kong may, with the approval of the Commissioner, examine the books, accounts and transactions of the principal place of business in Hong Kong or any local branch, or the documents of any local representative office-

(a) of an authorized institution which is incorporated in that

place; or

(b) of an authorized institution which is incorporated in or outside Hong Kong and is a subsidiary of a bank or other body corporate which is incorporated in that place.

PART XIII

OWNERSHIP AND MANAGEMENT OF AUTHORIZED INSTITUTIONS

69. (1) An authorized institution incorporated in Hong Kong shall not, in the case of an authorized institution which is a bank or restricted. inace bombosit taking company, without the prior approval in writing of the Financial Secretary, and in the case of an authorized institution which is a registered deposit-taking company, without the prior approval of the Commissioner-

(a) make any arrangement or enter into any agreement for the

sale or disposal of all or any part of-

(i) in the case of a bank, its banking business; and