Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Facility letter

  • 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.

  • 18 Jan 2002

    THE HONG KONG AND SHANGHAI BANKING CORPORATION LTD. v. AU KING WAH

    Citation
    THE HONG KONG AND SHANGHAI BANKING CORPORATION LTD. v. AU KING WAH
    Court
    Court of First Instance
    Case number
    HCA4299/2001

    The credit card claim failed because the Statement of Claim did not plead the material terms of the credit card agreement and could not be cured by affidavit; conversely, summary judgment was granted for the overdraft and loan facilities because the facility letters validly conferred an overriding right to demand repayment, the indebtedness was undisputed and no real defence was raised to those sums.

  • 15 Sept 1983

    LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

    Citation
    LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
    Court
    Court of First Instance
    Case number
    HCA4322/1983

    Facility Letters were construed as lending documents subject to an express reservation allowing the lender to reduce or withdraw the facility and to call the loans after the review date; no implied term prevented demand without notice; the earlier fraud action did not constitute an irrevocable election repudiating the loan contracts; triable issues existed concerning loans made for Paliburg share purchases and consideration for guarantees, so unconditional leave to defend was required in specified actions; where no triable issue existed summary judgment was entered for plaintiffs for the prin…

  • 15 Sept 1983

    LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

    Citation
    LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
    Court
    Court of First Instance
    Case number
    HCA6511/1983

    Facility Letters were contracts that reserved the lenders a continuing discretion to reduce or withdraw facilities and did not create an absolute obligation to maintain loans to the review date; therefore many repayment claims were not premature; defendants failed to establish an election by plaintiffs to repudiate the loans; triable issues existed as to loans made in connection with Paliburg shares and as to consideration for many guarantees; accordingly summary judgment was granted for principal sums in specified actions where no triable issue arose and unconditional leave to defend was giv…