Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Home starter loan
  • 31 Jul 2007

    THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YAN KING TAI ALBERT AND ANOTHER

    Citation
    THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YAN KING TAI ALBERT AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCMP1589/2006

    Interests on instalments in arrear were disallowed because none of the executed charges contained a clause authorising interest on arrears; however where the charge referred to the facility letter and the facility letter expressly provided for higher interest on sums due but unpaid, the mortgagee was entitled to charge that higher rate from the day after writ filing (applied to the two HSBC cases). In the Hang Seng case there was no clause permitting rate variation on default and therefore no higher default interest was allowed.