MONEY-LENDERS ORDINANCE, 1911

MONEY-LENDERS ORDINANCE, 1911

No. 16 of 1911.

An Ordinance to amend the law with respect to persons
carrying on business as money-lenders.

[1st jauary, 1912.]

1. This Ordinance may be cited as the Money-lenders
Ordinance, 1911.


2.--(1) Where proceedings are taken in any court by a
money-lender for the recovery of any money lent after the
commencement of this Ordinance, or the enforcement of any
agreement or security made or taken after the commencement
of this Oridnance, in respect of money lent either
before or after the commencement of this Oridnance, and
there is evidence which satisfies the court that the interest




charged in respect of the sum actually lent is excessive, or
that the amounts charged for expenses, inquiries, fines, bonus,
premium, renewals, or any other charges, are excessive, and
that, in either case, the transaction is harsh and unconscionable,
or is otherwise such that a court of equity would give
relief, the court may re-open the transaction, and take an
account between the money-lender and the person sued, and
may, notwithstanding any statement or settlement of account
or any agreement purporting to close previous dealings and
create a new obligation, re-open any account already taken
between them, and relieve the person sued from payment of
any sum in excess of the sum adjudged by the court to be
fairly due in respect of such principal, interest, and charges
as the court, having regard to the risk and all the circumstances,
may adjudge to be reasonable; and if any such
excess has been paid, or allowed in account, by the debtor,
may order the creditor to repay it; and may set aside either
wholly or in part, or revise, or alter, any security given or
agreement made in respect of money lent by the money-
lender, and if the money-lender has parted with the security
may order him to indemnify the borrower or other person
sued.

(2) Any court in which proceedings might be taken for the recovery
of money lent by a money-lender shall have and
at the instance of the borrower or surety or other person
liable, may exercise the like powers as may be exercised
under this section, where proceedings are taken for the recovery
of money lent, and the court shall have power, not-
withstanding any provision or agreement to the contrary, to
entertain any aplication under this Ordinance by the
borrower or surety or other person liable, notwithstanding
that the time for repayment of the loan, or any instalment
thereof, may not have arrived.

(3) On any application relating to the admission or amount
of a proof by a money-lender in any bankruptcy proceedings,
the court may exercise the like powers as may be exercised
under this section when proceedings are taken for the
recovery of money.

(4) The foregoing provisions shall apply to any transaction
which, whatever its form may be, is substantially one of
money-lending by a money-lender.




(5) Nothing in the foregoing provisions shall affect the
rights of any bond fide assignee or holder for value without
notice.

(6) Nothing in this section shall be construed as derogat-
ing from the existing powers or jurisdiction of any court.

3. (1) A money-lender -

(a) shall register himself as a money-lender in accordance

with regulations under this Ordinance at an office provided
for the purpose by the Governor in Council, under his own
or usual trade name, and in no other name, with the address,
or all the addresses if more than one, at which he carries on
his business of money-lender; and

(b) shall carry on the money-lending business in his
registered name, and in no other name, and under no other
description, and at his registered address or addresses, and
at no other address ; and

(c) shall not enter into any agreement in the course of his
business as a money-lender with respect to the advance and
repayment of money, or take any security for money in the
course of his business as a money-lender, otherwise than in
his registered name; and

(d) shall on reasonable request, and on under of a reason-
able sum for expenses, furnish the borrower with a copy of
any documnent relating to the loan or any security therefor.
(2) Every money-lender who fails to register himself as
required by this Ordinance, or carries on business otherwise
than in his registered name, or in more than one name, or
elsewhere than at his registered address, or falls to comply
with my other requirement of this section, shall upon
summary conviction be liable, to a fine not exceeding one
thonsand dollars, and, in the case of a second or subsequent
conviction, to imprisonment for any term not exceeding three
months and to a fine not, exceeding one thousand dollars:
Provided that if the offender be a body corporate it shall he
liable on a second or subsequent conviction to a fine not
exceeding five thousand dollars.

(3) A prosecution under sub-section (1) (a) shall not be
instituted except with the consent of the Attorney General.






4.-(1) It shall be lawful for the Governor in council to
make regulations respecting the registration of money-
lenders, whether Individuals, firms, societies or companies,
the form of the register, and the particulars to be, entered
therein, and the fee to be paid on registration and renewal
of registration, not exceeding ten dollars for each registra-
tion or reliewal, and repsecting the inspection of the register
and the fees payable therefor.

(2) The registration shall cease to have effect at the
expiration of three years from the date of the registration,
but may be renewed from time to time, and if reneived shall
have effect for three years from the date of the renewal.

5. Every money-lender, and every manager, agent, or
clerk of a money-lender, and every person being a director,
manager, or other officer of any corporation carrying on the
business of a money-lender, who, by any false, misleading,

or deceptive statement, representation, or promise or by
any dishonest concealment of material facts, fraudulently
induces or attempts to induce any person to borrow money
or to agree to the terms on which money is or is to be
borrowed, shall be guilty of a misdemeanor, and shall be
liable to imprisonment for any term not exceeding two years
and to a fine not exceeding five thousand dollars.


6. In this, Ordinance, money-lender includes every
person whose business is that of money-lending, or who
advertises or announces himself or holds himself out in any
way as carrying on that business ; but shall not include---


(1) any pawnbroker, in respect of business carried on by
him in accordance with the provisions of Ordinance
relating to pawnbrokers; or

(2) any body corporate, incorporated empowered by
any Ordinance or special Act of Parliament to lend money
in accordance with such Ordinance or Act; or

(3) any person bona fide carrying on the business of
banking or insurance, or bona fide carrying on any business

not having for its primary object the lending of money, in
the course of which and for the purposes whereof he lends
money; or

(4) any company, association or partnership for the time
being exompted registration under his Ordinance by
order of the Governor in Council made pursuant to the
regulations of the Governor in Council.
[s. 7, rep. No. 13 of 1912.]

[Originally No. 16 of 1911. Law Rev. Ord., 1924.] Short title. 63 & 64 Vict. C. 51, s. 7. Re-opening of transactions of moneylender 63 & 64 Vict. C. 51, s. 1. [s. 2 contd.] Registration of moneylenders, etc. 63 & 64 Vict. C. 51, s. 2. Regulations as to registration. 63 & 64 Vict. C. 51, s. 3. Penalties for false statements and representations. 63 & 64 Vict. C. 51, s. 4. Definition of moneylender 63 & 64 Vict. C. 51, s. 6. [ef. No. 1 of 1860.]

[Originally No. 16 of 1911. Law Rev. Ord., 1924.] Short title. 63 & 64 Vict. C. 51, s. 7. Re-opening of transactions of moneylender 63 & 64 Vict. C. 51, s. 1. [s. 2 contd.] Registration of moneylenders, etc. 63 & 64 Vict. C. 51, s. 2. Regulations as to registration. 63 & 64 Vict. C. 51, s. 3. Penalties for false statements and representations. 63 & 64 Vict. C. 51, s. 4. Definition of moneylender 63 & 64 Vict. C. 51, s. 6. [ef. No. 1 of 1860.]

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