74
CAP. 155]
Limitation on holding of
interest in land by authorized institutions.
3/90536
Banking
(2) Subsection (1) shall not apply-
[1987 Ed.
(a) where an authorized institution acquires or holds any part of the share capital of any company or companies under an underwriting or sub-underwriting contract for a period not exceeding 3 months, or such further period as the Commissioner approves in writing in any particular case; or
(b) to any holding, approved in writing by the Commissioner,
of share capital in-
(i) another authorized institution; or
(ii) a subsidiary formed by the authorized institution concerned for the carrying out of nominee, executor or trustee functions, or of other functions incidental to banking business or to the business of taking deposits.
(3) Every director and every manager of an authorized institution which contravenes 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.
(4) In this section, "share capital" includes perpetual subordinated debt.
88. (1) An authorized institution shall not purchase or hold any interest or interests in land situated in or outside Hong Kong of a value or to an aggregate value, as the case may be, in excess of 25 per cent of the paid-up capital and reserves of the institution.
(2) Subject to subsection (4), an authorized institution may, in addition to the value of any land permitted to be purchased or held under subsection (1), purchase or hold interests in land situated in or outside Hong Kong to any value, where the occupation of such land is, in the opinion of the Commissioner, necessary for conducting the business of the institution or providing housing or amenities for the staff of the institution.
(3) For the purposes of subsection (2), but without limiting the generality thereof, the Commissioner may in his discretion regard as necessary for conducting the business of an authorized institution the whole of any premises in which an office of the institution is situated.
(4) The aggregate value of interests in land purchased or held by a deposit-taking company under subsections (1) and (2) shall not exceed the aggregate amount of the paid-up capital and reserves of the deposit-taking company.
A or restricted licence bank
Page 75
Page 76
74
CAP. 155]
Limitation on holding of
interest in land by authorized institutions.
3/90536
Banking
(2) Subsection (1) shall not apply-
[1987 Ed.
(a) where an authorized institution acquires or holds any part of the share capital of any company or companies under an underwriting or subunderwriting contract for a period not exceeding 3 months, or such further period as the Commis- sioner approves in writing in any particular case; or
(b) to any holding, approved in writing by the Commissioner,
of share capital in-
(i) another authorized institution; or
(ii) a subsidiary formed by the authorized institution concerned for the carrying out of nominee, executor or trustee functions, or of other functions incidental to bank- ing business or to the business of taking deposits.
(3) Every director and every manager of an authorized institu- tion which contravenes 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 im- prisonment 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.
(4) In this section, "share capital" includes perpetual sub- ordinated debt.
88. (1) An authorized institution shall not purchase or hold any interest or interests in land situated in or outside Hong Kong of a value or to an aggregate value, as the case may be, in excess of 25 per cent of the paid-up capital and reserves of the institution.
(2) Subject to subsection (4), an authorized institution may, in addition to the value of any land permitted to be purchased or held under subsection (1), purchase or hold interests in land situated in or outside Hong Kong to any value, where the occupation of such land is, in the opinion of the Commissioner, necessary for conducting the business of the institution or providing housing or amenities for the staff of the institution.
(3) For the purposes of subsection (2), but without limiting the generality thereof, the Commissioner may in his discretion regard as necessary for conducting the business of an authorized institution the whole of any premises in which an office of the institution is situated.
(4) The aggregate value of interests in land purchased or held by a deposit-taking company under subsections (1) and (2) shall not exceed the aggregate amount of the paid-up capital and reserves of the deposit-taking company.
A or restricted licence bank
Page 75Page 76
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