Hong Kong Ordinances

MONEY LENDERS ORDINANCE - SECT 18

Form of agreement

PART III

MONEY LENDERS' TRANSACTIONS

(1) No agreement for the repayment of money lent by a money lender or for the
payment of interest on money so lent, and no security given to any
money lender in respect of any such agreement or loan, shall be enforceable
unless-

   (a)  within 7 days after the making of the agreement, a note or memorandum
        in writing of the agreement is made in accordance with subsection (2)
        and signed personally by the borrower, and a copy of such note or
        memorandum is given to the borrower at the time of signing; and

   (b)  there is included in or attached to such copy a summary, in such form
        as may be prescribed, of such provisions of this Part and Part IV as
        may be prescribed, and no such agreement or security shall be
        enforceable if it is proved that the note or memorandum was not signed
        by the borrower before the money was lent or the security was given.

(2) The note or memorandum shall contain all the terms of the agreement and in
particular shall set out-

   (a)  the name and address of the money lender;

   (b)  the name and address of the borrower;

   (c)  the name and address of the surety, if any;

   (d)  the amount of the principal of the loan in words and figures;

   (e)  the date of the making of the agreement;

   (f)  the date of the making of the loan;

   (g)  the terms of repayment of the loan;

   (h)  the form of security for the loan, if any;

   (i)  the rate of interest charged on the loan expressed as a rate per cent
        per annum, or the rate per cent per annum represented by the interest
        charged as calculated in accordance with Schedule 2; and (Amended 69
        of 1988 s. 15)

   (j)  a declaration as to the place of negotiation and completion of the
        agreement for the loan.

(3) Notwithstanding subsection (1), if the court before which the
enforceability of any agreement or security comes in question is satisfied
that in all the circumstances it would be inequitable that any such agreement
or security which does not comply with this section should be held not to be
enforceable, the court may order that such agreement or security is
enforceable to such extent, and subject to such modifications or exceptions,
as the court considers equitable. (Amended 69 of 1988 s. 15)