Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Exemption for margin lending
  • 2 Oct 1986

    NEW JAPAN SECURITIES INTERNATIONAL (H.K.) LTD. v. LIM YIONG LIN

    Citation
    NEW JAPAN SECURITIES INTERNATIONAL (H.K.) LTD. v. LIM YIONG LIN
    Court
    Court of First Instance
    Case number
    HCA704/1984

    The court found the first five rollovers amounted to new loans but involved the addition of accrued unpaid interest to principal and charging interest on that sum, which constituted compound interest illegal under s22 and therefore those loans were unenforceable; the sixth loan (not rolled over) was enforceable because the Court exercised its discretion under s18(3) in favour of the plaintiff; separately, the margin loans were exempt under Part II para 5 of the First Schedule because they were made in the ordinary course of the plaintiff's stockbroking business, so judgment was entered for th…