MONEY-LENDERS ORDINANCE, 1911
Title
MONEY-LENDERS ORDINANCE, 1911
Description
No. 16 of 1911.
An Ordinance to amend the law with respect to persons
carrying on business as money-lenders.
[1st January, 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, or the
enforcement of any agreement or security made or taken
in respect of money lent, 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 trans-
action is harsh and unconscionable, or is otherwise such that a
court of equity would give relief, the court may reopen 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, reopen 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 securitv 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,
Watchmen may not act as money-lenders : see No. 6 of 1928 [Watchmen],
s. 12.
As amended by Law Rev. Ord., 1939.
where proceedings are taken for the recovery of money lent, and
the court shall have power, notwithstanding any provision or
agreement to the contrary, to entertain any application under this
Ordinance bv 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 derogating
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 regis-
tered name, and in no other name, and under no other descrip-
tion, 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
The office provided for the registration of money-lenders is the Registry of
the Supreme Court : see the Regulations of Hong Kong (1937 edition).
(d) shall on reasonable request, and on tender of a reason-
able sum for expenses, furnish the borrower with a copy of any
document 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 fails to comply with any other
requirement of this section, shall upon summary conviction be
liable to a fine not exceeding one thousand 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 be liable on asecond 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
fees to be paid on registration and renewal of registration and
respecting the inspection of the register and the fees payable
therefor.
(2) The registration shall cease to have effect at the expiration
of one year from the date of the registration, but may be renewed
from time to time, and if renewed shall have effect for one year
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 con-
cealment 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 mis-
demeanor and shall be liable to imprisonment for any term not
exceeding two years and to a fine not exceeding five thousand
dollars.
As amended by No. 27 of 1931 [16.10.31]
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 any Ordinance relating
to pawnbrokers; or
(2) any body corporate, incorporated or empowered by any
Ordinance or special Act of Parliament to lend money in accord-
ance with such Ordinance or Act; or
(3) any person bond fide carrying on the business of bank-
ing or insurance, or bond 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 exempted from registration under this Ordinance by order
of the Governor in Council made pursuant to regulations of the
Governor in Council.
[Originally No. 16 of 1911. No. 27 of 1931. Law Rev. Ord., 1939.] Short title. Re-opening of transactions of money-lender. 63 & 64 Vict. C. 51, s. 1. [cf. No. 3 of 1901, ss. 21A, 22, 52, and 300.] Registration of money-lenders, 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 money-lender. 63 & 64 Vict. C. 51, s. 6. [cf. No. 16 of 1930.]
Abstract
[Originally No. 16 of 1911. No. 27 of 1931. Law Rev. Ord., 1939.] Short title. Re-opening of transactions of money-lender. 63 & 64 Vict. C. 51, s. 1. [cf. No. 3 of 1901, ss. 21A, 22, 52, and 300.] Registration of money-lenders, 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 money-lender. 63 & 64 Vict. C. 51, s. 6. [cf. No. 16 of 1930.]
Identifier
https://oelawhk.lib.hku.hk/items/show/1510
Edition
1937
Volume
v2
Subsequent Cap No.
163
Cap / Ordinance No.
No. 16 of 1911
Number of Pages
4
Files
Collection
Historical Laws of Hong Kong Online
Citation
“MONEY-LENDERS ORDINANCE, 1911,” Historical Laws of Hong Kong Online, accessed April 2, 2025, https://oelawhk.lib.hku.hk/items/show/1510.