Hong Kong Ordinances

TRUSTEE ORDINANCE - SECT 80

Deposit to be held as security

(Past version on 30/06/1997).

Amendments retroactively made - see 18 of 1999 s. 3

(1) From the time of the issue to any company of a certificate under
section 78 the investments or the sum of money deposited under section 77
shall be held as security for the depositors and creditors of the company and
for the faithful execution of all trusts which may be accepted by or imposed
upon the company and for its obligations generally. (Amended 23 of 1975 s.3)

(2) If at any time, by reason of the decline in value of any investments so
held by the Director of Accounting Services or of increase of the gross
liabilities of any trust company, the Registrar of Companies is of opinion
that additional security ought to be furnished by the trust company, he may
order the company to make, within a period to be stated in the order, a
further deposit of investments (being investments contemplated by
section 77(2)(e)) of a specified value with the Director of Accounting
Services: (Amended 23 of 1975 s.3) Provided that the company may appeal from
such order to the Chief Executive in Council, whose decision shall be final.
(Amended 18 of 1999 s. 3)

(3) A trust company may, with the approval of the Director of Accounting
Services and subject to such terms as he may specify-

   (a)  substitute-

        (i)    other investments contemplated by sub-paragraph (i) of
               paragraph (e) of section 77(2) for all or any of the
               investments deposited with the Director of Accounting Services
               under that sub-paragraph; or

        (ii)   a sum of money, as contemplated by sub-paragraph (ii) of that
               paragraph, for the investments so deposited; or

   (b)  if the company has deposited a sum of money under sub-paragraph (ii)
        of paragraph (e) of section 77(2), withdraw the sum and either-

        (i)    deposit it with another finance company; or

        (ii)   substitute for the sum of money so withdrawn investments
               contemplated by sub-paragraph (i) of that paragraph. (Replaced
               23 of 1975 s.3)

(4) All money accruing by way of dividends or interest in respect of
investments deposited with the Director of Accounting Services or in respect
of sums deposited with a finance company under this Part shall be paid to the
trust company which made the deposit. (Replaced 23 of 1975 s.3) (Amended L.N.
16 of 1977)