Clause 7

by deleting the marginal note and substituting the following marginal note:“Dealings by finance companies and credit facilities and limits.”;

by inserting, immediately after subsection (1)(b), the following paragraphs:“(c)grant or permit to be outstanding to any one person, firm, corporation or company or to any group of companies or persons which such person, firm, corporation or company is able to control or influence any credit facilities to an aggregate amount of such credit facilities in excess of 30 per cent of the capital funds or, with the approval of the Authority, up to but not in excess of 100 per cent of the capital funds of the finance company;

grant substantial loans which in the aggregate exceed 50 per cent of its total credit facilities or such other percentage as the Authority may from time to time determine;”;

by deleting subsection (1)(c)(i) and substituting the following sub-paragraph:“(i)any of its directors, whether those credit facilities are obtained by its directors jointly or severally;”;

by renumbering the existing subsection (1)(c) as subsection (1)(e);

by deleting the existing subsection (1)(d);

by deleting the words “paragraph (c)” in subsections (2), (3) and (4) and substituting in each case the words “paragraph (e)”;

by inserting, immediately after subsection (3), the following subsection:“(3A) In subsection (1)(d) “substantial loan” means any credit facility granted by a finance company to a single person, firm, corporation or company or to any group of companies or persons which such person, firm, corporation or company is able to control or influence which in the aggregate exceeds 15 per cent of the finance company’s capital funds.”;

by inserting, immediately after the word “section” at the end of subsection (4), the words “whether the finance company has contravened these provisions or not”; and

by inserting, immediately after subsection (4), the following subsection:“(4A) Any finance company which contravenes any of the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.”.