### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

33. Board’s powers in relation to arrangements designed to increase amount of compensation
(1) Subsection (2) applies if—
(a) an arrangement has been entered into or carried out on or after the relevant date in relation to a protected deposit with a Scheme member except where the arrangement is one in pursuance of a legally enforceable obligation incurred prior to that date;
(b) the arrangement has, or would have had but for this section, the effect of enabling a person to become entitled to an amount of compensation under Division 2, to which the person would otherwise not be entitled; and
(c) it would be concluded, having regard to—
(i) the manner in which, and the circumstances under which, the arrangement was entered into or carried out;
(ii) the form and substance of the arrangement; and
(iii) the result in relation to the operation of this Ordinance that, but for this section, would have been achieved by the arrangement,
that the arrangement was entered into or carried out for the sole or dominant purpose of enabling the person, either alone or in conjunction with other persons, to become entitled to an amount of compensation under Division 2, to which the person would otherwise not be entitled.
(2) The Board shall exercise its power under section 32(5)—
(a) as if the arrangement or any part thereof had not been entered into or carried out; or
(b) in such other manner as the Board considers appropriate to counteract the effect of the arrangement.
(3) In this section—
arrangement (安排) includes an arrangement, transaction, operation or scheme whether or not such arrangement, transaction, operation or scheme is enforceable, or intended to be enforceable, by legal proceedings;
relevant date (有關日期), in relation to a Scheme member, means—
(a) the date on which a Manager within the meaning of section 2(1) of the Banking Ordinance (Cap. 155) is appointed in respect of the Scheme member under section 52 of that Ordinance; or
(b) the date on which the petition for the winding up of the Scheme member is presented,
whichever is the earlier.

34. Compensation in Hong Kong dollars
Compensation payable in accordance with this Ordinance shall be paid in Hong Kong dollars regardless of the currency in which the protected deposit concerned is denominated.

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

35. Maximum amount of compensation payable to a depositor
The amount of compensation payable to a depositor of a failed Scheme member in accordance with this Ordinance is not to exceed—
(a) the amount in respect of which the depositor would, on the winding up of the failed Scheme member, be entitled to priority under section 265(1)(db) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32); or (Amended 28 of 2012 ss. 912 & 920)
(b) where an estimate has been made under section 27(4)(d) as a result of which the specified amount of compensation to which the depositor is entitled as referred to in section 27(1) or (2) is greater than the amount referred to in paragraph (a), that specified amount subject to the limit prescribed in section 27(1) or (2). (Amended 2 of 2016 s. 6)
(Replaced 11 of 2010 s. 5.)

36. Interim payment
(1) If a specified event has occurred in relation to a Scheme member, and the Board considers that, in relation to a depositor of the Scheme member— (Amended 11 of 2010 s. 6)
(a) there is uncertainty as to the entire amount of compensation payable to the depositor in accordance with this Ordinance; or
(b) the time required to ascertain the entire amount of compensation payable to the depositor in accordance with this Ordinance would be so long as to unduly delay the payment of compensation to the depositor by the Board,
the Board may make an interim payment of compensation to the depositor. (Amended 11 of 2010 s. 6)
(2) The Board—
(a) is to determine the amount of interim payment to be made to a depositor under subsection (1); and
(b) may make interim payments of different amounts to different depositors or different classes of depositors under subsection (1),
that the Board considers appropriate having regard to the matters that the Board thinks relevant in the circumstances, which may include the financial position of the depositor or depositors concerned. (Added 11 of 2010 s. 6)

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

37. Recovery of payment by Board
(1) If the amount of compensation paid, whether or not as an interim payment under section 36, to a depositor from the Fund is later found to be greater than the amount of compensation payable to the depositor in accordance with this Ordinance, the depositor shall repay the excess to the Board in a manner, and within a period, specified by the Board.
(2) If a depositor contravenes subsection (1)—
(a) the Board may impose on the depositor a late repayment fee of a sum not exceeding 5% of the amount of the excess that remains to be repaid by the depositor; and
(b) the depositor shall pay to the Board the late repayment fee in a manner, and within a period, specified by the Board.
(3) Such excess or late repayment fee as a depositor is required to repay or pay under this section is recoverable by the Board from the depositor as a debt due to the Board. The Board may, in relation to the excess or late repayment fee—
(a) determine, if it considers uneconomical to do so, not to recover the same from the depositor; or
(b) take such steps as it considers appropriate to recover the same from the depositor.
(4) The Board shall, on collecting any such excess or late repayment fee from a depositor, pay it into the Fund.
(5) For the purposes of subsection (1), a reference to the amount of compensation payable to the depositor in accordance with this Ordinance does not include, where an estimate has been made under section 27(4)(d) as a result of which the amount of compensation paid to the depositor (the paid amount

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

39. Reimbursement from provisional liquidator
The provisional liquidator of a failed Scheme member may, subject to the approval of the Court of First Instance, reimburse the Board out of the assets of the failed Scheme member for any amount of compensation paid to a depositor of the failed Scheme member from the Fund, together with any interest accrued thereon in accordance with section 38.