Hong Kong Ordinances

LAND TITLES ORDINANCE - SECT 37

Form and effect of charges

not yet in operation

(1) A charge on registered land or a registered long term lease shall be
effected by—

   (a)  its registration as an incumbrance; and

   (b)  the registration of the person in whose favour it is made as its
        owner.

(2) Where, in relation to a registered charge which is a charge to which Part
III of the Companies Ordinance ( Cap 32) applies, there is any conflict or
inconsistency between the provisions of this Ordinance and the provisions of
that Part, then the provisions of that Part (including that Part as read with
any other provisions of the Companies Ordinance ( Cap 32) to which it is
subject) shall, to the extent of the conflict or inconsistency, as the case
may be, prevail over the provisions of this Ordinance.

(3) For the avoidance of doubt, it is hereby declared that—

   (a)  a registered charge shall not operate as a transfer of the
        registered land or the registered long term lease which is subject to
        the charge but shall have effect as a security only; and

   (b)  where the registered charge is a mortgage effected by a legal charge
        within the meaning of section 2 of the Conveyancing and Property 
        Ordinance ( Cap 219), the registration of the charge under this
        Ordinance shall not affect the operation of section 44(2) of that
        Ordinance.