Hong Kong Ordinances

BANKING ORDINANCE - SECT 79

Interpretation and application

(Past version on 01/04/2003).
(Past version on 30/06/1997).

PART XV

LIMITATIONS ON LOANS BY AND INTERESTS OF AUTHORIZED INSTITUTIONS

(1) In this Part-

"non-listed company" (非上市公司) means a company not listed on a
recognized  stock market: (Amended 5 of 2002 s. 407) Provided that any public
statutory corporation designated for the purposes of this definition by the
Financial Secretary by notice in the Gazette shall be deemed not to be a
non-listed company;

"relative" (親屬) means-

   (a)  any immediate ascendant, any spouse or former spouse of any such
        ascendant, and any brother or sister of any such spouse or former
        spouse; (Replaced 49 of 1995 s. 26)

   (b)  any immediate descendant, and any spouse or former spouse of any such
        descendant; (Replaced 49 of 1995 s. 26)

   (c)  any brother or sister, aunt or uncle and any nephew or niece and any
        first cousin; (Replaced 49 of 1995 s. 26)

   (d)  any spouse or former spouse, any immediate ascendant of any such
        spouse or former spouse, and any brother or sister of any such spouse
        or former spouse, (Added 49 of 1995 s. 26) and, for the purposes of
        this definition, any step-child shall be deemed to be the child of
        both its natural parent and of its step-parent and any adopted child
        to be the child of the adopting parent, and a spouse shall include
        anyone living as such; (Amended 95 of 1991 s. 24)

"value" (價值) means-

   (a)  in the case of shares in a company, the total of the current book
        value and the amount for the time being remaining unpaid on the
        shares; and (Amended 95 of 1991 s. 24)

   (b)  in any other case, the current book value.

(2) For the purposes of this Part, the capital base of an
authorized institution means the capital base of the institution as determined
in accordance with rules made under section 98A(1). (Replaced 95 of 1991 s.
24. Amended 19 of 2005 s. 7)

(3) For the purposes of sections 83 and 85, "unsecured" (無保證) means
granted without security, or, in respect of any advance, loan or credit
facility granted or financial guarantee or other liability incurred with
security, any part thereof which at any time exceeds the market value of
assets constituting that security; and "security" (保證) means such security
as would, in the opinion of the Monetary Authority, be acceptable to a prudent
banker. (Amended 95 of 1991 s. 24; 82 of 1992 s. 25)

(4) In relation to any authorized institution incorporated outside  Hong Kong,
sections 80, 82, 85, 86 and, to the extent that it relates to such an
institution, section 91 shall apply only to its principal place of business in
Hong Kong and its local branches, and shall do so as if that principal place
of business and those branches were collectively a separate
authorized institution. (Amended 64 of 1987 s. 19; 95 of 1991 s. 24)

(5) The Financial Secretary may, by notice in the Gazette, amend
the definition of "relative". (Added 49 of 1995 s. 26)

"non-listed company" (非上市公司)

"relative" (親屬)

"value" (價值)

"unsecured" (無保證)

"security" (保證)