Hong Kong Ordinances

BANKING ORDINANCE - SECT 14

Deposit-taking company not to take deposits less than specified sum

(Past version on 30/06/1997).

(1) Subject to subsection (2)-

   (a)  a deposit-taking company shall not take in Hong Kong any deposit from
        a depositor of a sum less than the amount specified in item 2 of the
        First Schedule; and

   (b)  a restricted licence bank shall not take in Hong Kong any deposit from
        a depositor of a sum less than the amount specified in item 3 of the
        First Schedule. (Amended 95 of 1991 s. 5)

(2) A deposit-taking company or restricted licence bank may take a deposit
from a depositor of a sum less than the specified sum applying at the date of
that deposit if the amount standing to the credit of the depositor with the
deposit-taking company or restricted licence bank, as the case may be, at the
time any such deposit is taken is not less than the specified sum applying at
the date of that deposit.

(3) Except where a depositor withdraws the whole amount standing to his credit
with a deposit-taking company or a restricted licence bank, the
deposit-taking company or restricted licence bank, as the case may be, shall
not at the time of the withdrawal of any sum permit the amount of the balance
standing to the credit of the depositor to be less than the specified sum.

(4) Notwithstanding subsection (3), where a depositor has an amount standing
to his credit with a deposit-taking company or a restricted  licence bank at a
time when the specified sum is amended by being increased, the
deposit-taking company or restricted licence bank, as the case may be, may
permit the amount of the balance to be reduced by withdrawals to any amount
that is not less than the specified sum as it was before being so amended.

(5) Every director, every chief executive and every manager of a
deposit-taking company or a restricted licence bank which contravenes
subsection (1) or (3) commits an offence and is liable- (Amended 32 of 2001 s.
24)

   (a)  on conviction upon indictment to a fine at tier 8 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at tier 5 and to imprisonment for 6
        months. (Amended 4 of 1997 s. 27)

(6) Any person who holds himself out, whether as a broker or agent of a
deposit-taking company or a restricted licence bank or otherwise, as being
prepared to take from any person, any sum less than the specified  sum for the
purpose of making a deposit of that sum, or of that sum and other sums, with
the deposit-taking company or restricted licence bank, as the case may be,
commits an offence and is liable-

   (a)  on conviction upon indictment to a fine at tier 8 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at tier 5 and to imprisonment for 6
        months. (Amended 4 of 1997 s. 27)

(7) Any person who enters into a contract or arrangement, or uses any device
or scheme, which has the effect of, or is designed to have the effect of,
avoiding subsection (1) or (3) commits an offence and is liable-

   (a)  on conviction upon indictment to a fine at tier 8 and to imprisonment
        for 5 years; or

   (b)  on summary conviction to a fine at tier 5 and to imprisonment for 6
        months. (Amended 4 of 1997 s. 27) (Amended 3 of 1990 s. 5)