Cap 65 s 3 Issue of legal tender notes (LEGAL TENDER NOTES ISSUE ORDINANCE)

Contents of Section

Chapter:	65	Title:	LEGAL TENDER NOTES ISSUE ORDINANCE	Gazette Number:	68 of 1999
Section:	3	Heading:	Issue of legal tender notes	Version Date:	01/07/1997

Remarks:

Adaptation amendments retroactively made - see 68 of 1999 s. 3

(1) The Financial Secretary may, with the approval of the Chief Executive in Council, issue currency notes. (Amended 68 of 1999 s. 3)
(2) Subject to subsection (3), the Financial Secretary may, with the approval of the Chief Executive in Council, by notice in writing authorize a bank to issue bank notes subject to such terms and conditions as the Financial Secretary thinks fit and specified in the notice including, but without limiting the generality of the foregoing, terms and conditions relating to- (Amended 68 of 1999 s. 3)

(a) the design, denomination, means of production, distribution, quantity, safe-keeping or destruction of any such notes;

(b) arrangements for any such issue which are consistent with the object of maintaining the stability of Hong Kong's currency.

(3) The Financial Secretary shall not authorize a bank under subsection (2) to issue bank notes subject to such terms and conditions as he thinks fit unless he is satisfied that, if the bank is so authorized, its issue of bank notes subject to those terms and conditions will be in accordance with-

(a) the provisions of the charter, Ordinance (other than the Companies Ordinance (Cap 32)), statutes, memorandum of association, or other instrument under which the bank is incorporated; or

(b) those provisions as modified by-

(i) the Exchange Fund Ordinance (Cap 66); or

(ii) this Ordinance.

(4) Where, immediately before the commencement of the Bank Notes Issue (Amendment) Ordinance 1995 (98 of 1995), it was lawful under section 4(1) or (2) of this Ordinance as in force immediately before that commencement for a bank to make, issue, or circulate within Hong Kong bank notes payable to bearer on demand, then the bank shall be deemed to be authorized under subsection (2) to issue bank notes as if, on that commencement, the Financial Secretary had so authorized the bank, and the other provisions of this Ordinance shall be construed accordingly.
(5) The Financial Secretary may, by notice in writing, amend the authorization (or deemed authorization) under subsection (2) of a bank, including any terms and conditions to which the authorization (or deemed authorization) is subject.
(6) It shall not be lawful for any bank other than a bank authorized (or deemed to be authorized) under subsection (2) to make, issue, or circulate within Hong Kong bank notes payable to bearer on demand.
(7) If a bank contravenes subsection (6) it, its principal manager or agent in Hong Kong, each of its directors (if any) and each of the partners (if any) therein shall be liable on summary conviction to a fine at level 5 and in the case of a second or subsequent conviction to imprisonment for 3 months and to a fine at level 5:
Provided that if the offender is a body corporate it shall be liable on a second or subsequent conviction to a fine at level 6.
(8) For the purposes of this section, "bank note payable to bearer on demand" (憑票要求付款予持票人的銀行紙幣) means a bill of exchange or promissory note, issued by any bank, payable to bearer on demand.

(Replaced 98 of 1995 s. 4)