Hong Kong Ordinances

HIGH COURT ORDINANCE - SECT 20A

Property which may be charged

(Past version on 30/06/1997).

Adaptation amendments retroactively made - see 25 of 1998 s. 2

(1) Subject to subsection (3), a charge may be imposed by a charging order
only on-

   (a)  an interest held by the debtor beneficially-

        (i)    in any asset of a kind mentioned in subsection (2) or

        (ii)   under any trust; or

   (b)  an interest held by a person as trustee of a trust (in this
paragraph referred to as "the trust"), if the interest is in an asset of a
kind mentioned in subsection (2) or is an interest under another trust and-

        (i)    the judgment or order in respect of which a charge is to be
               imposed was made against that person as trustee of the trust;

        (ii)   the whole beneficial interest under the trust is held by the
               debtor unencumbered and for his own benefit; or

        (iii)  in a case where there are 2 or more debtors all of whom are
               liable to the creditor for the same debt, they together hold
               the whole beneficial interest under the trust unencumbered and
               for their own benefit.

(2) The assets referred to in subsection (1) are-

   (a)  land;

   (b)  securities of any of the following kinds-

        (i)    Government stock;

        (ii)   stock of any body incorporated in Hong Kong;

        (iii)  stock of any body incorporated outside Hong Kong or of any
               state or territory outside Hong Kong, being stock registered in
               a register kept at any place within Hong Kong;

        (iv)   units of any unit trust in respect of which a register of the
               unit holders is kept at any place within Hong Kong; or

   (c)  funds in court.

(3) In any case where a charge is imposed by a charging order on any interest
in an asset of a kind mentioned in subsection (2)(b) or (c), the
Court of First Instance may provide for the charge to extend to any interest,
dividend or other distribution payable and any bonus issue in respect of the
asset. (Amended 25 of 1998 s. 2)

(4) In this section-

"dividend" (派息) includes any distribution in respect of any unit of a
unit  trust; [cf. 1979 c. 53 s. 6 U.K.]

"stock" (證券) includes shares, debentures, loan stocks, funds, bonds,
notes, any other securities issued by the body concerned, whether or not
constituting a charge on the assets of that body and any rights or options to
subscribe for or be allotted any of the foregoing; and

"unit trust" (單位信託) means any trust established for the purpose, or
having the effect, of providing, for persons having funds available for
investment, facilities for the participation by them, as beneficiaries under
the trust, in any profits or income arising from the acquisition, holding,
management or disposal of any property whatsoever. (Added 52 of 1987 s. 14)
[cf. 1979 c. 53 s. 2 U.K.]

"dividend" (派息)

"stock" (證券)

"unit trust" (單位信託)