### Urban Renewal Authority Ordinance 《市區重建局條例》

11. Borrowing powers
(1) The Authority may borrow from the Government, such money as may be required for the performance of the duties of the Authority under this Ordinance, on such terms and conditions as may be approved by the Financial Secretary.
(2) Subject to subsection (3), the Authority may borrow by way of overdraft from sources other than the Government such money as it may require for meeting its obligations or performing its duties under this Ordinance.
(3) The Secretary for Financial Services and the Treasury may give directions in writing of a general or specific character to the Authority in relation to the amount of money which may be borrowed under subsection (2) and the Authority shall comply with those directions. (Amended L.N. 106 of 2002)
(4) The Authority may with the approval of the Financial Secretary borrow, otherwise than by way of overdraft from sources other than the Government, such money as it may require for meeting its obligations or performing its duties under this Ordinance.
(5) A person lending money to the Authority shall not be concerned to inquire whether the borrowing of the money by the Authority is legal or regular or whether the money lent has been properly applied by the Authority and shall not be prejudiced by any illegality or irregularity or by misapplication or non-application by the Authority of the money.
(6) The Authority may with the approval of the Financial Secretary charge all or any part of its property as security for the repayment of money borrowed.

12. Power to lend money
(1) Subject to subsection (2), the Authority may lend money on such terms and conditions as the Authority thinks fit to any person or persons for the purposes of implementing a project of the Authority.
(2) The Authority, when exercising the power under subsection (1), shall consider—
(a) the needs of those persons who will be displaced by the implementation of a project for residential accommodation in the same locality; and
(b) where there is a business which will be displaced by the implementation of a project, the needs of those persons to operate the business as a going concern.
(3) The Secretary for Financial Services and the Treasury may give directions in writing of a general or specific character to the Authority in relation to the amount of money which may be lent under subsection (1) and the Authority shall comply with those directions. (Amended L.N. 106 of 2002)

### Urban Renewal Authority Ordinance 《市區重建局條例》

13. Guarantee by Government
(1) The Legislative Council may from time to time by resolution authorize the Financial Secretary on behalf of the Government to grant guarantees in respect of—
(a) the repayment of loans made to, or the discharge of other indebtedness of, the Authority and the payment of interest, premium or other charge thereon; and
(b) the redemption or repayment of, and the payment of interest, premium or other charge on, any bonds, notes or other securities issued by the Authority,
up to an amount not exceeding in total that specified in the resolution and subject to any terms or conditions specified therein.
(2) A guarantee granted under subsection (1) which includes interest, amounts payable in consequence of the operation of any price variation clause, premium or other charges, shall not be invalid by reason only of the fact that such interest, amounts, premiums or charges, although specified in the resolution authorizing the granting of the guarantee, are not quantified as to total amount or included in the amount quantified in such resolution.
(3) Any sum required for fulfilling a guarantee granted under subsection (1) by the Government shall be charged on and paid out of the general revenue and any sum received by the Government by way of repayment of a sum so paid out, or for interest thereon, shall be paid into the general revenue.
(4) If, pursuant to a guarantee granted under subsection (1), the Government makes a payment to a creditor of the Authority in respect of a debt secured by a mortgage or a specific or floating charge, such sum shall be repayable to the Government by the Authority, together with interest thereon at such rate as the Financial Secretary may determine, and the Government shall as from the time of payment have the benefit of all the remedies vested in the creditor by virtue of such mortgage or charge with liberty to exercise the rights and powers arising thereunder in its own name and without any assignment by the creditor.

### Urban Renewal Authority Ordinance 《市區重建局條例》

14. Use of surplus funds
(1) The Authority may invest money that in any financial year is not immediately required to be expended in such forms of investment as the Financial Secretary may approve.
(2) If in any financial year there is an excess of revenue of the Authority over the total sum required by it to be expended—
(a) to meet the total outgoings of the Authority properly chargeable to revenue; and 
(b) to enable the Authority to—
(i) make such allocations to reserve as it may reasonably consider adequate; 
(ii) pay any moneys owing by it, whether or not payment is legally due at the time,
the Financial Secretary may, after consultation with the Authority, give the Authority directions requiring it to pay the whole or part of the excess to the Government and the Authority shall comply with those directions.
(3) Subject to any directions given under subsection (2), the Authority may deal with any such excess as is mentioned in that subsection—
(a) by applying it for such of the purposes of the Authority as the Authority may determine; or
(b) by allocating it to reserve, whether generally or for a particular purpose,
or partly in one of those ways and partly in another.
(4) Any sum received by the Government under subsection (2) shall be paid into the general revenue.

15. Debt of Authority
(1) The Authority shall be indebted to the Government in a sum equal to—
(a) all money received by the Authority under section 10(1)(a);
(b) all expenditure directly or indirectly incurred by the Government for the benefit of the Authority.
(2) The Financial Secretary shall determine the amount of such indebtedness and any interest thereon by certificate under his hand and may for sufficient cause reduce or increase any amount so certified. 
(3) The indebtedness of the Authority under subsections (1) and (2) and any interest thereon shall be discharged in such manner as the Financial Secretary directs.

16. Authority to keep proper accounting records and to prepare financial statements
(1) The Authority shall keep such accounting records as correctly explain its financial transactions and financial position and so that—
(a) true and fair financial statements can be prepared from time to time; and
(b) those statements can be conveniently and properly audited in accordance with section 18.
(2) The Authority shall ensure that the following financial statements are prepared as soon as practicable and in any case not later than 3 months after the end of each financial year—
(a) an income and expenditure account that gives a true and fair view of the Authority’s income and expenditure for that year;
(b) a balance sheet as at the end of that year that gives a true and fair view of the Authority’s financial position as at the end of that year.
(3) The Authority shall ensure that the financial statements comply with any accounting standards notified to the Authority in writing by the Financial Secretary.