Law Relating to Banking in Hong Kong

Contents

Contents฀ The Authors i x Preface to the Second Edition x i Preface to the First Edition xii i 1. Bankin g and the Law in Hong Kong 1 1.1 Introductio n 1 1.2 Makin g Payments for Customers 4 1.3 Th e Status of the Customer 4 1.4 Securit y 4 1.5 Insolvenc y 5 1.6 Governmen t Regulation of Banks 5 1.7 Studyin g Banking Law 6 1.8 Bibliograph y 6 2. Negotiabl e Instruments 9 2.1 Th e Nature of Negotiable Instruments 9 2.2 Bill s of Exchange 1 0 2.3 Cheque s 5 9 2.4 Promissor y Notes 7 1 3. Agenc y 7 5 3.1 Agen t and Agency 7 5 3.2 Source s of the Law 7 5 3.3 Kind s of Agent 7 6 3.4 Agenc y and Other Relationships 7 8 3.5 Method s of Creating Agency 8 2 3.6 Exten t and Scope of an Agent's Authority 8 8 3.7 Right s and Duties of Agents 9 3 3.8 Principa l and Third Parties 9 7 3.9 Agent s and Third Parties 9 9 3.10 Terminatio n 10 1 3.11 Som e Aspects of Agency Relating to Banking 10 3 v฀ vi฀Contents฀ 4. Partnershi p 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 Introduction Definition Formation Proceeding By and Against a Partnership Partnership and Third Parties Relations Between the Partners Partnership Property Assignment Partnership Accounts Dissolution Settling Accounts and Distributing Assets Limited Partnerships The Partnership and the Bank 5. Companie s 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 Introduction Body Corporate Public and Private Companies Procedure for Registration The Memorandum and Articles of Association Name The Objects Clause and Ultra Vires Doctrine Limitation of Liability The Share Capital Association Clause Articles of Association The Effect o f the Memorandum and Articles Alteration of the Memorandum and Articles Directors Shares Loan Capital, Debentures and Charges Charges Securing Debentures 6. Securitie s 6.1 6.2 6.3 6.4 The Nature and Function of Securities Mortgage of Land Life Policies as Security Share Mortgage 107 107 108 108 113 113 120 122 124 125 125 129 133 135 139 139 139 147 148 149 151 155 158 159 160 160 161 164 168 176 178 182 195 195 195 224 227 6.5 Guarante e Contents฀vii฀ Insolvency 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 Introduction Bankruptcy Bankruptcy Procedure Distribution and Priority of Payments Discharge Insolvency and Corporate Debtors Receivership Liquidation Liquidation Procedure Banks and Insolvency Conclusion 249 249 251 253 258 259 261 264 265 269 274 277 Banking Regulation 27 9 8.1 Histor y of Banking Legislation 27 9 8.2 Meanin g of the Terms 'Bank', 'Banker ' an d 'Banking Business' 28 2 8.3 Licensin g of Banks 28 3 8.4 Ownershi p and Management of Banks 28 5 8.5 Adequac y of Capital 28 7 8.6 Restriction s and Limitations 29 0 8.7 Commissions , Liquidity and Interest 29 4 8.8 Charge s on Credit Balances of Customers 29 8 8.9 HKA B Rules on Other Banking Activities 30 0 8.10 Informa l Prudential Control 30 2 8.11 Allowanc e for Secret Reserves 30 3 8.12 Restricte d Licence Banks 30 4 The Collapse of BCCHK 30 7 9.1 Th e Failure of BCCHK 30 7 9.2 Th e Closure of BCCHK 30 7 9.3 Rescu e Attempts 30 8 9.4 Th e Legal Background 30 9 9.5 Th e Exchange Fund 31 1 9.6 Th e Role of the Commissioner 31 4 9.7 Th e Failure of BO 31 6 9.8 Th e Significance of BCCHK 31 8 viii฀Contents฀ 10. Conclusiv e Evidence Clauses, Bank Statements and Banking Today 32 1 10.1 Introductio n 32 1 10.2 Conclusiv e Evidence Clauses 32 2 10.3 Conclusiv e Evidence Clauses...