Hong Kong Regulations

LEGAL AID (CHARGE ON PROPERTY)(RATE OF INTEREST) REGULATION - SECT 3

Prescribed rate of interest

(1) Subject to subsection (3), for the purposes of section 18A(3B)(b) of the
Ordinance, the prescribed rate of interest, in relation to an interest period,
shall be an annual rate—

   (a)  calculated in accordance with the formula set out in subsection

(2); and

   (b)  rounded to 3 decimal places.

(2) The formula referred to in subsection (1) is— BLR (1 April) – (Monthly
BLR (120 months) – Monthly HKDISR (120 months)), where

   (a)  "BLR (1 April)" is the BLR on 1 April of the year in which the
        interest period commences;

   (b)  "Monthly BLR (120 months)" is the arithmetic mean of the Monthly BLR
        of all months within the 120-month period ending on 31 March of the
        year in which the interest period commences;

   (c)  "Monthly HKDISR (120 months)" is the arithmetic mean of the
        Monthly HKDISR of all months within the 120-month period ending on 31
        March of the year in which the interest period commences.

(3) Where the annual rate calculated in accordance with the formula set out in
subsection (2) is less than zero, the prescribed rate of interest, in relation
to the interest period, shall be zero.