Hong Kong Ordinances

BANKING ORDINANCE - SECT 25

Suspensions

(Past version on 30/06/1997).

(1) Subject to section 26, in any case where the powers of the
Monetary Authority become exercisable under section 22(1) with respect to an
authorized institution (and whether or not the Monetary Authority has complied
with section 23(1) in respect of the institution), the Monetary  Authority
may, after consultation with the Financial Secretary, by notice in writing
served on the institution, suspend its authorization for a period not
exceeding 6 months.

(2) A suspension under this section may, before the expiration of the period
thereof, be renewed by the Monetary Authority, after consultation with the
Financial Secretary-

   (a)  by notice in writing served on the authorized institution the subject
        of the suspension; and

   (b)  for a period not exceeding 6 months commencing immediately upon the
        expiration of the suspension.

(3) The Monetary Authority may, by notice in writing served on an
authorized institution, consent to the institution continuing to hold a 
deposit-

   (a)  lawfully taken by the institution before the date on which the
        suspension under subsection (1) of its authorization takes effect as
        specified in a notice under that subsection served on it;

   (b)  the holding of which on or after that date would, but for this
        subsection, contravene section 11, 12 or 27(1); and

   (c)  subject to such conditions, if any, as he may think proper to attach
        to the consent in any particular case, and, accordingly, if that
        institution continues to hold that deposit on or after that date
        pursuant to that consent and in accordance with those conditions, if
        any, then it shall be deemed not to have thereby contravened that
        section.

(4) Without limiting the generality of subsection (3)(c), the
Monetary Authority may, by notice in writing served on an authorized 
institution, attach to a consent given to the institution pursuant to
subsection (3) such conditions (including attach by way of amending conditions
already attached to such consent), or cancel any conditions attached to such
consent, as he may think proper.

(5) Without limiting the generality of subsection (3)(c) or (4), conditions
referred to in that subsection may specify-

   (a)  the period for which a deposit referred to in subsection (3) may be
        held by the authorized institution concerned;

   (b)  the manner in which such deposit may be held or used by the
        institution.

(6) The Monetary Authority may, by notice in writing served on an
authorized institution, require the institution to submit, within such period
and in such manner as are specified in the notice, such information as he may
reasonably require in order to ascertain whether the institution is complying
with the conditions referred to in subsection (3)(c) or (4) attached to a
consent given to the institution pursuant to subsection (3).

(7) (Repealed 4 of 1997 s. 27)

(8) Every director, every chief executive and every manager of an
authorized institution which contravenes any condition referred to in
subsection (3)(c) or (4) attached to a consent given to the institution
pursuant to subsection (3) commits an offence and is liable- (Amended 32 of
2001 s. 24)

   (a)  on conviction upon indictment to a fine at tier 7; or

   (b)  on summary conviction to a fine at tier 5, and, in the case of a
        continuing offence, to a further fine at tier 2 for every day during
        which the offence continues. (Amended 4 of 1997 s. 27)

(9) Every director, every chief executive and every manager of an
authorized institution which fails without reasonable excuse to comply with
any requirement under subsection (6) commits an offence and is liable-
(Amended 32 of 2001 s. 24)

   (a)  on conviction upon indictment to a fine at tier 7 and to imprisonment
        for 2 years and, in the case of a continuing offence, to a further
        fine at tier 3 for every day during which the offence continues; or

   (b)  on summary conviction to a fine at tier 5 and to imprisonment for 6
        months and, in the case of a continuing offence, to a further fine at
        tier 2 for every day during which the offence continues. (Amended 4 of
        1997 s. 27)

(10) Any person who signs any document for the purposes of any requirement
under subsection (6) which he knows or reasonably ought to know to be false in
a material particular 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) (Part VI replaced 49 of 1995 s. 6)