1987 Ed.]
Banking
[CAP. 155
73
(c) prohibit the authorized institution from permitting to be outstanding with any bank specified by the Commissioner in pursuance of his powers under paragraph (a)—
(i) any moneys which should have been repaid to the institution by virtue of a direction under paragraph (b);
(ii) any advances, loans or credit facilities repayable or terminable upon the elapse of any time or the occurrence of any event, after the elapse of such time or the occurrence of such event.
(3) A requirement under subsection (2)(a) shall not prohibit the grant of any advance or loan after the date of service of the notice in pursuance of any agreement entered into prior to such date unless the Commissioner otherwise directs; but it shall be the duty of the authorized institution to notify the Commissioner of any relevant agreement within 7 days of the receipt by it of a notice under this section.
(4) In this section-
"foreign bank" means-
(a) any bank incorporated outside Hong Kong which is not licensed under this Ordinance;
(b) any undertaking of an authorized institution, including that of the institution to which notice is given under this section, which is situated outside Hong Kong.
(5) Every director and every manager of an authorized institution which fails without reasonable excuse to comply with any requirement of the Commissioner in the exercise of his powers under this section 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 imprisonment 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.
87. (1) Subject to subsection (2), an authorized institution shall not acquire or hold any part of the share capital of any other company or companies to an aggregate value in excess of 25 per cent of the paid-up capital and reserves of the institution, except such share capital as the institution may hold as security for facilities granted by it or acquire in the course of the satisfaction of debts due to it: (Amended, 64 of 1987, s. 23)
Provided that all share capital acquired in the course of the satisfaction of debts due to it shall be disposed of at the earliest suitable opportunity, and in any event not later than 18 months after the acquisition thereof or within such further period as the Commissioner approves in writing in any particular case.
Limitation on shareholding by authorized institutions.
1987 Ed.]
Banking
[CAP. 155
73
(c) prohibit the authorized institution from permitting to be outstanding with any bank specified by the Commissioner in pursuance of his powers under paragraph (a)—–—–—
(i) any moneys which should have been repaid to the institution by virtue of a direction under paragraph (b);
(ii) any advances, loans or credit facilities repayable or terminable upon the elapse of any time or the occurrence of any event, after the elapse of such time or the occurrence of such event.
(3) A requirement under subsection (2)(a) shall not prohibit the grant of any advance or loan after the date of service of the notice in pursuance of any agreement entered into prior to such date unless the Commissioner otherwise directs; but it shall be the duty of the authorized institution to notify the Commissioner of any rele- vant agreement within 7 days of the receipt by it of a notice under this section.
(4) In this section-
"foreign bank" means-
(a) any bank incorporated outside Hong Kong which is not
licensed under this Ordinance;
(b) any undertaking of an authorized institution, including that of the institution to which notice is given under this section, which is situated outside Hong Kong.
(5) Every director and every manager of an authorized institu- tion which fails without reasonable excuse to comply with any requirement of the Commissioner in the exercise of his powers under this section 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.
87. (1) Subject to subsection (2), an authorized institution shall not acquire or hold any part of the share capital of any other company or companies to an aggregate value in excess of 25 per cent of the paid-up capital and reserves of the institution, except such share capital as the institution may hold as security for facilities granted by it or acquire in the course of the satisfaction of debts due to it: (Amended, 64 of 1987, s. 23)
Provided that all share capital acquired in the course of the satisfaction of debts due to it shall be disposed of at the earliest suitable opportunity, and in any event not later than 18 months after the acquisition thereof or within such further period as the Commis- sioner approves in writing in any particular case.
Limitation on shareholding by authorized
institutions.
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