Deposit Protection Scheme Ordinance

Extract

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Deposit Protection Scheme Ordinance

- CHAPTER 581

DEPOSIT PROTECTION SCHEME ORDINANCE - LONG TITLE

Long title VerDate:25/09/2006

An Ordinance to provide for the establishment of a Hong Kong Deposit Protection Board; to provide for the establishment by the Board of a Deposit Protection Scheme for the purpose of providing compensation to depositors under certain circumstances in respect of deposits maintained with banks that are members of the Scheme; to provide for the establishment of a Deposit Protection Scheme Fund from which such compensation is to be paid; to provide for contributions to the Fund and for the entitlement to, and payment of, compensation from the Fund; to make consequential and other amendments to other Ordinances; and to provide for connected purposes.

[Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 14, 16, 17, 18, 19, 20, 21, 46, 47, 49, 50, 51, 53 and 54

Section 55 (in so far as it relates to sections 2, 4 and 8 of Schedule 5)

Schedules 1 and 2

Sections 2, 4 and 8 of Schedule 5

22 May 2004 L.N. 101 of 2004

Sections 40, 41, 42, 43, 44, 45 and 52

Section 55 (in so far as it relates to section 5 of Schedule 5)

Schedule 3

Section 5 of Schedule 5

14 January 2005 L.N. 188 of 2004

Sections 11, 12, 13 and 48

Section 55 (in so far as it relates to section 3 of Schedule 5)

Section 3 of Schedule 5 }

}25 February 2005 L.N. 219 of 2004

The remianing provisions } 25 September 2006 L.N. 110 of 2006]

(Originally 7 of 2004)

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 1

Short title and commencement VerDate:22/05/2004

PART 1 PRELIMINARY

(1) This Ordinance may be cited as the Deposit Protection Scheme Ordinance.

(2) This Ordinance shall come into operation on a day to be appointed by the Secretary for Financial Services and the Treasury by notice published in the Gazette.

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 2

Interpretation VerDate:22/05/2004

(1) In this Ordinance, unless the context otherwise requires—

“applicant” means a person who applies to the Tribunal under section 41(1), (2) or (3) for a review of—

(a) a decision, or an assessment, of the Board; or

(b) a decision of the Monetary Authority;

“authorized institution” has the meaning assigned to it by section

2(1) of the Banking Ordinance (Cap 155);

“bank” means a company—

(a) that holds a valid banking licence; or

(b) the banking licence of which is for the time being suspended under section 24 or 25 of the Banking Ordinance (Cap 155);

“banking licence” means a banking licence granted under section 16 of the Banking Ordinance (Cap 155);

“bare trustee” , in relation to a deposit or portion thereof, means a person holding the deposit or that portion on trust for a beneficiary where the beneficiary has the exclusive right to direct how the deposit or that portion is to be dealt with subject only to the right of the person to resort to the deposit or that portion to satisfy any outstanding charge or lien or for the payment of duty, taxes, costs or other outgoings;

“Board” means the Hong Kong Deposit Protection Board established by section 3;

“chief executive” , in relation to a Scheme member or a bank, means the chief executive appointed under section 74 of the Banking Ordinance (Cap 155) in respect of the Scheme member or the bank, and includes an alternate chief executive so appointed;

“client account” , in relation to a depositor, means an account maintained by the depositor with a bank for the purpose of holding money held by the depositor for a client of the depositor, whether or not other money may be held in the account;

“contribution” means—

(a) the build-up levy within the meaning of Schedule 4;

(b) the expected loss levy within the meaning of Schedule 4; or

(c) the surcharge within the meaning of Schedule 4;

“deposit” has the meaning assigned to it by section 2(1) of the Banking Ordinance (Cap 155);

“depositor” means a person entitled to repayment of a deposit, whether made by him or not;

“director” includes any person who occupies the position of director, whatever the title of his office;

“Exchange Fund” means the Exchange Fund established by the Exchange Fund Ordinance (Cap 66);

“Exchange Fund Bill” means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66);

“failed Scheme member” means a Scheme member in relation to which a specified event has, for the purposes of Part 5, occurred;

“function” includes a power and a duty;

“Fund” means the Deposit Protection Scheme Fund established by section 14;

“HKAB” means The Hong Kong Association of Banks incorporated by section 3 of The Hong Kong Association of Banks Ordinance (Cap 364);

“holding company” means a holding company within the meaning of section 2 of the Companies Ordinance (Cap 32);

“information system” has the meaning assigned to it by section 2(1) of the Electronic Transactions Ordinance (Cap 553);

“late payment fee” means the late payment fee imposed by the Board under sec...

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