Hong Kong Regulations

BANKING ORDINANCE (DEPOSIT-TAKING EXEMPTIONS) (CONSOLIDATION) NOTICE - SCHEDULE 2

CONDITIONS TO WHICH EXEMPTION IS SUBJECT

[paragraph 2(b)]

1. The beneficial owner of the company (whether directly or indirectly) shall
be-

   (a)  the Crown in right of the State of South Australia; or

   (b)  a minister or statutory authority of that State.

2. In carrying on any business of taking deposits in Hong Kong or elsewhere,
the company shall not-

   (a)  issue, or have in its possession for the purposes of issue, any
        advertisement which to its knowledge is or contains an invitation to
        members of the public-

        (i)    to make any deposit; or

        (ii)   to enter into, or offer to enter into, any agreement to make
               any deposit;

   (b)  issue, or have in its possession for the purposes of issue, any
        document which to its knowledge contains such an advertisement; or

   (c)  in any other manner issue or make an invitation to members of the
        public to do any of the acts referred to in sub-paragraph (a), where
        such issue, possession or making is not in contravention of section 92
        of the Ordinance, except as the Financial Secretary may approve in
        writing from time to time.

3. In carrying on any business of taking deposits in Hong Kong or elsewhere,
no deposit shall be taken by the company from any Hong Kong resident except
such a resident which is a company-

   (a)  owned by or under the control of;

   (b)  the assets of which are charged in favour of; or

   (c)  the obligations of which in respect of borrowed moneys are owed to, or
        guaranteed by, the South Australian Government Financing Authority or
        the Treasurer of the State of South Australia.

4. In carrying on any business of taking deposits in Hong Kong, the  company
shall not take any deposit which is less than US$10000000, or an equivalent
amount in any other foreign currency.

5. The company shall not take any deposit in Hong Kong unless it is
denominated and repayable in a currency other than the Hong Kong dollar.

6. The obligations of the company to repay the principal of, and to pay
interest on, any deposit taken by it in Hong Kong shall be guaranteed by-

   (a)  the South Australian Government Financing Authority;

   (b)  the Treasurer of that State; or

   (c)  a statutory authority of that State the liabilities of which are
        guaranteed by that Treasurer. (Enacted 1986)