Hong Kong Ordinances

MONEY LENDERS ORDINANCE - SECT 24

Prohibition of excessive interest rates

PART IV

EXCESSIVE INTEREST RATES

(1) Any person (whether a money lender or not) who lends or offers to lend
money at an effective rate of interest which exceeds 60 per cent per annum
commits an offence.

(2) No agreement for the repayment of any loan or for the payment of interest
on any loan and no security given in respect of any such agreement or loan
shall be enforceable in any case in which the effective  rate of interest
exceeds the rate specified in subsection (1).

(3) The Legislative Council may by resolution alter the rate specified in
subsection (1): Provided that in relation to any agreement for the repayment
of any loan or for the payment of interest on any loan which is in force at
the date when such rate is so altered, the rate so specified as at the coming
into force of such agreement shall continue to apply.

(4) Any person who commits an offence under this section shall be liable-

   (a)  on summary conviction to a fine of $500000 and to imprisonment for 2
        years;

   (b)  on conviction on indictment to a fine of $5000000 and to imprisonment
        for 10 years. (Amended 82 of 1994 s. 33)

(5) Nothing in this section shall apply to-

   (a)  a loan specified in paragraph 12 in Part 2 of Schedule 1; or

   (b)  as respects such loan, any person who makes such loan. (Replaced 69 of
        1988 s. 20)