loan arranger requirements specifications

#Loan arranger requirements specifications license#

A company the shares or debentures of which are listed on a recognized stock market (or any subsidiary of that company).A company that has a paid-up share capital of not less than HKD 1,000,000 (or an equivalent amount in any other approved currency which is freely convertible into Hong Kong dollars).

A company where the loan is secured by a mortgage, charge, lien or other encumbrance that is registered under the Companies Ordinance (CO).

#Loan arranger requirements specifications license#

The MLO requires any lender (other than an AI) that is in the business of making loans in Hong Kong (or who advertises, announces or holds themselves out as doing so) to obtain a money lenders’ license and to comply with various requirements relating to the making of loans.Įxemptions from the MLO licensing requirements and most of the MLO compliance requirements (other than in relation to restrictions on charging excessive interest rates) are available, namely, in respect of “exempted persons” and “exempted loans” (as specified in Schedule 1 of the MLO).Įxempted persons include banks incorporated or established outside Hong Kong that are considered by the Hong Kong Monetary Authority (HKMA) (pursuant to a declaration to be obtained from the HKMA on a case-by-case basis) to be subject to prudential supervision by a recognized banking supervisory authority.Įxempted loans include, amongst other, loans made to any of the following persons: If a Finance Party is not an AI, but intends to lend money in Hong Kong (e.g., whether to a Hong Kong company or other legal person, or if the loan is advanced in Hong Kong), then the Money Lenders Ordinance (MLO) imposes licensing and other compliance requirements that may apply to a non-AI lender. There are three types of AI, namely, licensed banks, restricted license banks and deposit-taking companies.

A lender, arranger, facility agent or security agent (' Finance Party') that is a party to any loan or security arrangements with a company located in Hong Kong is generally not subject to any licensing requirements provided it is an “authorized institution” (AI) under the Banking Ordinance (BO).