Hong Kong Regulations

LEGAL AID (ASSESSMENT OF RESOURCES AND CONTRIBUTIONS) REGULATIONS - SCHEDULE 2

RULES FOR COMPUTING DISPOSABLE CAPITAL

(Past version on 20/02/2006).
(Past version on 03/07/2000).
(Past version on 01/07/1997).
(Past version on 30/06/1997).

[regulation 4(b)]
(L.N. 148 of 2000)

1.	Subject to the provisions of these regulations or rules, there 
shall be included in the computation of the amount of the capital of the 
person concerned the amount or value of every resource of a capital nature 
ascertained as on the date of the application:
Provided that, where it is brought to the notice of the Director that, 
between the date of application and his determination there has been a 
substantial fluctuation in the value of a resource or there has been a 
substantial variation in the nature of a resource affecting the basis of 
computation of its value, or any resource has ceased to exist or a new 
resource has come into the possession of the person concerned, the 
Director shall compute the capital resources of that person in the light 
of such facts and the resources as so computed shall be taken into account 
in the Director's determination.

2.	So far as any resource does not consist of money, the amount or 
value thereof shall be taken to be the amount which that resource would 
realize if sold in the open market or, if there is only a restricted 
market for that resource, the amount which it would realize in that 
market, or shall be taken to be the amount or value thereof assessed in 
such manner as appears to the Director to be just and equitable.

3.	Where money is due to the person concerned, whether immediately 
payable or otherwise and whether the payment thereof is secured or not, 
the value shall be taken to be the present value thereof.

4.	If the person concerned stands in relation to a company in a 
position analogous to that of a sole owner or partner in the business of 
that company, the Director may, in lieu of ascertaining the value of his 
stocks, shares, bonds or debentures in that company, treat that person as 
if he were such sole owner or partner and compute the amount of his 
capital in respect of that resource in accordance with rule 5.

5.	Where the person concerned is or is to be treated as the sole 
owner of or a partner in any business, the value of such business or his 
share therein to that person shall be taken to be either-
(a)	such sum, or his share of such sum, as the case may be, as 
could be withdrawn from the assets of such business without substantially 
impairing the profits of such business or the normal development thereof; 
or
(b)	such sum as that person could borrow on the security of his 
interest in such business without injuring the commercial credit of that 
business,
whichever is the greater.

6.	The value of any interest in reversion or remainder on the 
termination of a prior estate, whether legal or equitable, in any real or 
personal property or in a trust or other fund, whether the person 
concerned has the sole interest or an interest jointly or in common with 
other persons or whether his interest is vested or contingent, shall be 
computed in such manner as is both equitable and practicable.

7.	Save in exceptional circumstances, nothing shall be included in 
the amount of capital of the person concerned in respect of-
(a)	the household furniture and effects of main or any dwelling 
house occupied by him;
(b)	articles of personal clothing; and
(c)	the personal tools and equipment of his trade, not being part 
of the plant or equipment of a business to which the provisions of rule 5 
of this Schedule apply.

8.	(1)	The value of any interest in the only or main 
dwelling in which the person concerned resides shall be disregarded in 
computing the amount of his capital.  (L.N. 195 of 1992)
(2)	Where the person concerned resides in more than one dwelling in 
which he has an interest, the Director shall take into account in respect 
of the value to him of any interest in a dwelling which is not the main 
dwelling any sum which might be obtained by borrowing money on the 
security thereof.

9.	Where the person concerned has received or is entitled to 
receive from a body of which he is a member a sum of money by way of 
financial assistance towards the cost of the proceedings in respect of 
which a certificate is applied for, such sum shall be disregarded.

10.	The value of any life assurance or endowment policy shall be 
taken to be the amount which the person concerned could readily borrow on 
the security thereof.

11.	(Repealed L.N. 195 of 1992)

12.	Where an application relates to a claim for damages arising 
from personal injuries to, or the death of, any person, there shall be 
disregarded the amount of any compensation received by the person 
concerned under-
(a)	the Employees' Compensation Ordinance (Cap 282);
(b)	the Pneumoconiosis and Mesothelioma (Compensation) Ordinance 
(Cap 360); or  (6 of 2008 s. 40)
(c)	the Occupational Deafness (Compensation) Ordinance (Cap 469).
(L.N. 186 of 1989; L.N. 107 of 1990; 21 of 1995 s. 45)

12A.	(1)	Where an application relates to a claim for damages 
arising from personal injury to a person, and monies have been received by 
the person concerned under an insurance policy in respect of the injury, 
there shall be disregarded such amount as the Director considers to be 
reasonable to provide for the care and medical treatment and appliance 
which are likely to be required by the injured person as a result of the 
injury over the 3-year period commencing on the date of application.
(2)	In determining the amount to be disregarded under subsection 
(1), the Director shall have regard to the circumstances of the case, 
including but not limited to-
(a)	the amount, if any, actually incurred to provide for the care 
and medical treatment and appliance required by the injured person as a 
result of the injury during the 12-month period immediately preceding the 
date of application; and
(b)	the medical evidence, if any, as to the care and medical 
treatment and appliance which are likely to be required by the injured 
person as a result of the injury.
(L.N. 224 of 2005)

13.	In computing the amount of the disposable capital of the person 
concerned, there shall be disregarded-
(a)	the amount of any moneys paid to him from the assistance fund 
established under section 3 of the Traffic Accident Victims (Assistance 
Fund) Ordinance (Cap 229);
(b)	the amount of any interim payment made to him in accordance 
with an order made under the Rules of the High Court (Cap 4 sub. leg. A), 
or in accordance with an agreement having the same effect as such an 
order; and  (25 of 1998 s. 2)
(c)	such amount or value, if any, of a donation or gift received by 
him, as the Director considers to be reasonable having regard to the 
amount, value and nature of the donation or gift.
(L.N. 186 of 1989)