Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Interest capitalization

Legal area

Court

1 Aug 2022

TOTALCORP (NOMINEES) LIMITED v. HONG KONG SAI KUNG NGONG WO RESORT DEVELOPMENT LIMITED

Citation

[2022] HKCFA 17
Court

Court of Final Appeal
Case number

FAMV32/2022

The Court granted leave to appeal on two specific questions of general or public importance: (1) whether an extension of a loan necessarily creates a new loan capitalising accrued interest under authorities such as BS Lyle, and (2) whether a new loan made to discharge a loan contravening s.24 MLO is tainted by illegality or fails for want of consideration where the new loan's effective rate complies with s.24. The Court refused leave on other challenges (meaning of money-lender and applicability of Order 88) as not reasonably arguable given concurrent findings below.
16 Mar 2007

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YANG WAI MAN

Citation

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD v. YANG WAI MAN
Court

Court of First Instance
Case number

HCMP1003/2006

Term 6 of the Facility Letter was not incorporated into the Charge because Clause 3(a) and the defined 'Sum' did not clearly provide for interest on sums due but not paid or for capitalisation; accordingly the claims for overdue (late payment) interest (both on instalments and on outstanding principal) and for capitalisation were disallowed; only the outstanding principal and contractual interest as provided by the Charge were recoverable and the earlier order was varied accordingly.