1964_BANKING_ORDINANCE — Page 69

68

Limitation on advances to directors, etc. of bank.

3/90534

CAP. 155]

Banking

[1987 Ed.

83. (1) Subject to subsection (4A), a bank shall not grant any facility specified in subsection (3) to or on behalf of any person or body specified in subsection (4) if the aggregate amount of such facilities for the time being granted by that bank to or on behalf of any one or more such persons or bodies would thereby exceed 10 per cent of the paid-up capital and reserves of the bank. (Amended, 64 of 1987, s. 21)

and (44)

(2) Subject to subsection (1), a bank shall not grant any facility specified in subsection (3) to or on behalf of any person specified in subsection (4)(a), (b), (c), (d), (e) or (f) if the aggregate amount of such facilities for the time being granted by that bank to or on behalf of that person would thereby exceed $250,000.

(3) For the purposes of subsections (1) and (2), the following facilities are specified-

(a) the granting, or permitting to be outstanding, of unsecured advances, unsecured loans or unsecured credit facilities including unsecured irrevocable documentary letters of credit;

(b) the giving of unsecured financial guarantees; and

(c) the incurring of any other unsecured liability.

(4) For the purposes of subsections (1) and (2), the following persons and bodies are specified-

(a) any director of the bank;

(b) any relative of any such director;

(c) any employee of the bank who is responsible, either individually or as a member of a committee, for determin- ing loan applications;

(d) any relative of any such employee;

(e) any controller (other than an authorized institution, or

a bank incorporated outside Hong Kong which is not licensed under this Ordinance but is approved by the Commissioner for the purposes of this paragraph) of the bank; (Replaced, 64 of 1987, s. 21)

(S) any relative of an individual who is a controller of the

bank;

(g) any firm, partnership or non-listed company (other than a firm, partnership or non-listed company which is an au- thorized institution, or a bank incorporated outside Hong Kong which is not licensed under this Ordinance but is approved by the Commissioner for the purposes of this paragraph) in which the bank or any of its directors or any relative of any of its directors is interested as director, partner, manager or agent; and

(h) any individual, firm, partnership or non-listed company of which any director of the bank or any relative of any such director is a guarantor.