‘ding six months

‘Crate of OU", perannum

lo. 48°, do.
lo. 36°, do.
lo. 24% do.

t the principal is
ionths of making

le rate of 7 per month
lo. 6 do.
lo. 5 do.
lo. 4he,, do.
lo, 4 do.

1 moneylender to
r different times,
loaned, or owing
e that authorised
een loaned as one

a comprehensive
ussions, bonuses,
vhatsoever name
x payable to the
erwise in respect
ges, expenses and
Ordinance or by

1 rate of interest
rdinance may be
: of any person,
1e of two hundred
n and one-fourth
Il be paid to the

section shall not

t of the Attorney

encement of this
eylender licensed

 

Moneylenders.

[Ch. 31. No. 11.

 

851

under this Ordinance shall be illegal in so far as it provides Provision
directly or indirectly for the payment of interest in advance defaults.

whether by deduction of any amount from the principal
sum borrowed or otherwise or for the payment of compound
interest or for the rate or amount of interest being increased
by reason of any default in the payment of sums due under
the contract and any such moneylender contravening the
provisions of this section shall be liable to the penalties

prescribed by section 13.

. Where by a contract for the loan of money by a
moneylendier licensed under this Ordinance the interest
charged on the loan is not expressed in terms of a rate,
any amount paid or payable to the moneylender under
the contract (other than simple interest charged in accor 7
ance with section 12) shall be appropriated to principal am
interest in the proportion that the principal bears to the
total amount of the interest, and the rate per centum per
annum represented by the interest charged as calculate
in accordance with the provisions of the Schedule hercto
shall be deemed to be the rate of interest charged on the

loan.

agreement between a moncylender licensed
under tne Ordinance and a borrower or intending borrower
for the payment by the borrower or intending borrower to
the moneylender of any sum on account of costs, charges
or expenses incidental to or relating to the negotiations
for or the granting of the loan or proposed loan shall be
illegal, and if any sum is paid to such moneylender by a
borrower or intending borrower as for or on account of any
such costs, charges or expenses that sum shall be recoverable
as a debt due to the borrower or intending borrower, or,
in the event of the loan being completed, shall, if not S90
recovered, be set off against the amount actually lent and
that amount shall be deemed to be reduced accordingly:

. . . ; ly

rided that the provisions of this section shall not appl)
to auch ‘charges. expenses and costs as are specifically
allowed by this Ordinance or by the court adjudicating

on the matter.

54 (2)

Method of
calculating
interest
when not
expressed in
terms ofa
rate.

Prohibition
of charge for
expenses on
loans by
money-
lenders.