1964_BANKING_ORDINANCE — Page 64

1987 Ed.]

Banking

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(d) the purchase of bills of exchange or documents of title to goods where the holder of such bills or documents is entitled to payment outside Hong Kong for goods exported from Hong Kong;

(e) any advances made against any bills or documents referred

to in paragraph (d); (Replaced, 64 of 1987, s. 20)

(f) any financial exposure to the Government; (Replaced, 64

of 1987, s. 20)

(g) any financial exposure to any eligible Government as defined in paragraph of the Third Schedule; or (Replaced, 64 of 1987, s. 20)

(h) transactions between an authorized institution and a bank incorporated outside Hong Kong which is not licensed under this Ordinance where any such bank is, in the opinion of the Commissioner, adequately supervised by a banking supervisory authority in its place of incor- poration.

(3) The Commissioner may, for the purposes of paragraph (c) of the proviso to subsection (2), where the authorized institution is a bank, accept a letter of comfort if that letter of comfort--

(a) is given by another bank which--

(i) is a shareholder in the bank for the benefit of which the letter of comfort is given;

(ii) controls any body corporate which is a shareholder in the bank for the benefit of which the letter of comfort is given; or

(iii) is a bank controlled by a body corporate which is either a shareholder in the bank for the benefit of which the letter of comfort is given or controls any body corporate which is a shareholder in that bank; or

(b) is given by another bank incorporated in Hong Kong, or by a bank incorporated outside Hong Kong which is not licensed under this Ordinance but is, in the opinion of the Commissioner, adequately supervised by a banking super- visory authority in its place of incorporation; and

(c) has been given pursuant to a resolution of the board of directors of the other bank and with the knowledge of the banking supervisory authority of the place where the other bank is incorporated.

(4) The Commissioner may, for the purposes of paragraph (c) of the proviso to subsection (2), where the authorized institution is a deposit-taking company accept a letter of comfort if that letter of comfort-

(a) is given by a bank which-

(i) is a shareholder in the deposit-taking company;

Third Schedule.

4 or restricted licence bank

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