1964_BANKING_ORDINANCE — Page 77

76

CAP. 155]

Proof of

compliance with sections 81, 83, 84, 87, 88, 89 and 90.

Banking

[1987 Ed.

(i) the amount outstanding of all facilities specified in section 83(3) granted to or on behalf of persons or bodies specified in section 83(4);

(ii) the value of all holdings of share capital specified in section 87; and

(iii) the value of all holdings of interests in land speci- fied in section 88(1) and (2),

shall not at any time exceed 80 per cent of the paid-up capital and reserves of a bank.

(2) In assessing the aggregate total which is permissible under subsection (1) there shall not be taken into account any matter which is excluded from the operation of section 83, 87 or 88 by virtue of any of the provisions thereof or of section 79(2).

(3) Every director and every manager of a bank which con- travenes 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.

91. (1) Any authorized institution, if at any time called upon in writing by the Commissioner so to do, shall satisfy him by the production of such evidence or information as he may require, that-

(a) in the case of an authorized institution which is a bank, the bank is not in contravention of any of the provisions of section 81, 83, 87, 88 or 90; and

(b) in the case of an authorized institution which is a deposit- taking company the deposit taking company is not in contravention of any of the provisions of section 81, 84, 87, 88 or 89.

(2) Any authorized institution, if at any time called upon in writing by the Commissioner so to do, shall satisfy him by the production of such evidence or information as he may require, whether or not the institution is engaging in any business practices specified in a notice under section 82.

(3) Every director and every manager of an authorized institu- tion which fails or refuses without reasonable excuse to comply with subsection (1) or (2) 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