MONEY-LENDERS ORDINANCE

MONEY-LENDERS ORDINANCE

CHAPTER 163.

MONEY-LENDERS.

To amend the law with respect to persons carrying on business US
money-lenders

[1st January, 1912.]

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

2. (1) Where proceedings are taken in any court by

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
satisties 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 othe charges are excessive, and that, in
either case, the transaction is harsh and unconscionable, or
is such that a court of would give relief
the court may reopen the transaction, and take an account
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 in 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 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 exercised under this section, 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 by the borrow 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 adrilission or amount of a
proof by a money-lender in any bankruptcy proceedings, the court
may exercise the like powers as may bc exercised under this section
when proceedings are taken for the recovery of money.

(4) The foregoing provisions shall apply to any trans-

action which, whatever its form may be, is substantially
one of money-lender

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

(6) Nothing in this section shall be construed as
derogating from thepowers or jurisdiction of any
court.

3. A money-lender
(a)shall register himself as a money-lender in accordance with
regulations under this Ordinance at the office of the Registrar
of Companies, under his own or usual trade hame and in no
other name, with the address, or all the addresses if more
than one, it which he carries on his business of moneylender
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
till? advance aiid repayment of money, or take any
security for money in the course of his busines's
as a money-lender, otherwise than in his registered
name; and

(d)shall on reasonable request, and on tender of a reasonable
sum for expenses, furnish the borrower





with a copy of any document relating to the loan or any
securits, therefor.

(2) Every money-lender who fails to register himself
as required by this Ordinance, or carries on business other-
wise than in his registered name, or in more than one
name or elsewhere than at his registered aeldress, or fails
to comply with any other requirement of this section, shall
upon summary conviction be liable to a fine of one thousand
dollars, and in the case of a second or subsequent convic-
tion, to a fine of two thousand dollars and imprisonment
for three months : Provided that if the offender be a body
corporate it shall be liable on a second or subsequent con-
viction to a fine of five thousand dollars.

(3) A prosecution under paragraph (a) of subsection (i) shall not
bc 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 conipanies, ihe 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 business of a
moncy-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 guilly of a misdemeanor and shall be liable to a fine
of five thousand dollars and to imprisonment for two





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

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

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

(c)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

(d)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 16 1911. Fraser 16 1911. 22 of 1950. Short title. Reopening of transactions of money-lender. 63 & 64 Vict. C. 51, s. 1. [s. 2 cont.] Registration etc. 63 & 64 Vict. C. 51, s. 2. 22 of 1950, Schedule. Regulations as to registration. 63 & 64 Vict. C. 61, 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.

Originally 16 1911. Fraser 16 1911. 22 of 1950. Short title. Reopening of transactions of money-lender. 63 & 64 Vict. C. 51, s. 1. [s. 2 cont.] Registration etc. 63 & 64 Vict. C. 51, s. 2. 22 of 1950, Schedule. Regulations as to registration. 63 & 64 Vict. C. 61, 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.

https://oelawhk.lib.hku.hk/items/show/1963

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