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

8. Board may issue guidelines
(1) The Board may issue, for the guidance of banks or depositors, guidelines not inconsistent with this Ordinance, indicating the manner in which it proposes to perform its functions under this Ordinance.
(2) The Board shall publish a guideline issued under this section in the Gazette.
(3) The Board may amend or revoke a guideline issued under this section. Subsection (2) applies to the amendment or revocation of a guideline in the same way as it applies to the issue of a guideline.
(4) A person does not incur a civil or criminal liability only because the person has contravened a guideline issued under this section. If in any legal proceedings the court is satisfied that such a guideline is relevant to determining a matter that is in issue in the proceedings—
(a) the guideline is admissible in evidence in the proceedings; and
(b) proof that the person contravened or did not contravene the guideline may be relied on by any party to the proceedings as tending to establish or negate the matter.
(5) A guideline issued under this section is not subsidiary legislation.
(6) In this section, court (法院) includes a magistrate and the Tribunal.

9. Directions of Chief Executive in Council
(1) After consultation with the Chairman of the Board, the Chief Executive in Council may, on being satisfied that it is in the public interest to do so, give the Board such written directions as he thinks fit with respect to the performance of any of the Board’s functions under this Ordinance.
(2) The Board shall comply with any written direction given under subsection (1).
(3) If a written direction is given under subsection (1), a requirement under an Ordinance that the Board shall, for the purpose of performing any of the functions to which the written direction relates—
(a) form any opinion;
(b) be satisfied as to any matter (including existence of particular circumstances); or
(c) consult any person, 
does not apply for any purpose connected with the performance of functions pursuant to, or consequent upon, the written direction.

10. Exemption from taxation
The Board is exempt from taxation under the Inland Revenue Ordinance (Cap. 112).

11. Establishment of Deposit Protection Scheme
The Board shall, for the purposes of this Ordinance, establish and maintain a scheme to be known as the “Deposit Protection Scheme” in English and “存款保障計劃” in Chinese.

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

12. Membership of Scheme
(1) Subject to section 13, every bank is a member of the Scheme and remains as such until—
(a) the company ceases to be a bank by virtue of section 18(3) of the Banking Ordinance (Cap. 155); or
(b) its banking licence is revoked under that Ordinance.
(2) In the case of a bank the banking licence of which was granted on or before the commencement* of this section, it becomes a member of the Scheme on that commencement.
(3) In the case of a bank the banking licence of which is granted after the commencement of this section, it becomes a member of the Scheme on the date on which its banking licence is granted.

Editorial Note:
* Commencement date: 25 February 2005.

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

14. Establishment of Deposit Protection Scheme Fund
(1) There is established by this section a fund to be known as the “Deposit Protection Scheme Fund” in English and “存款保障計劃基金” in Chinese.
(2) The Fund is to consist of—
(a) contributions and late payment fees collected from Scheme members;
(b) money recovered by the Board from, or out of the assets of, Scheme members;
(c) returns on investments made under section 21;
(d) money borrowed by the Board for the purpose of performing its functions; and
(e) any other money lawfully paid into the Fund.

15. Contributions to Fund
(1) The Board shall assess the amount of contribution payable by each Scheme member.
(2) As soon as practicable after having made an assessment under subsection (1), the Board shall notify the Scheme member of the assessment in writing.
(3) A Scheme member shall pay to the Board, in the prescribed manner and within the prescribed period, the amount of contribution assessed by the Board.
(4) If a Scheme member fails to pay any contribution in contravention of subsection (3)—
(a) the Board may impose on the Scheme member a late payment fee of $5,000, or of a sum equivalent to 10% of the amount of the contribution that remains to be paid by the Scheme member, whichever is the greater; and
(b) the Scheme member shall pay to the Board the contribution that remains to be paid by it, and the late payment fee, in the prescribed manner and within a period specified by the Board.
(5) The Board shall, on collecting any contribution or late payment fee from a Scheme member, pay it into the Fund.
(6) If a Scheme member contravenes subsection (4)(b), every director and every chief executive of the Scheme member commits an offence and is liable—
(a) on conviction on indictment to a fine of $400,000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.
(7) Schedule 4 has effect with respect to the contributions payable by a Scheme member and to rebates and refunds of contributions.

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

16. Payments from Fund
There shall be paid from the Fund, as required under this Ordinance, the following—
(a) expenses incurred—
(i) in investigating or deciding the entitlement of depositors and other persons to compensation under Division 2 of Part 5;
(ii) in relation to the Scheme;
(iii) in the exercise by the Board of the rights, powers and authorities vested in it by this Ordinance or rules made under section 51;
(b) expenses incurred in—
(i) the establishment and maintenance of the Scheme;
(ii) the management and administration of the Fund;
(c) expenses incurred in obtaining insurance, sureties, guarantees or other security, or in making any financial arrangement, in respect of any compensation paid under this Ordinance;
(d) repayment of, and interest on, any money borrowed by the Board for the purpose of performing its functions;
(e) such amounts of compensation as allowed under this Ordinance, and the costs of and incidental to paying the same;
(f) such amounts of rebates and refunds of contributions as allowed under this Ordinance, and the costs of and incidental to paying the same;
(g) expenses incurred by or in relation to the Tribunal;
(h) any other money payable from the Fund in accordance with this Ordinance.

17. Financial year and estimates
(1) The Board may, with the prior approval of the Financial Secretary, fix a period to be the financial year of the Fund.
(2) As soon as practicable after the commencement* of this section, the Board shall submit to the Financial Secretary, for his approval, estimates of the income and expenditure of the Fund for the first financial year of the Fund.
(3) In each financial year of the Fund, before a date to be fixed by the Financial Secretary, the Board shall submit to the Financial Secretary, for his approval, estimates of the income and expenditure of the Fund for the next financial year of the Fund.

Editorial Note:
* Commencement date: 22 May 2004.

18. Accounts
(1) The Board shall keep and maintain proper accounts and records of all transactions of the Fund.
(2) After the end of each financial year of the Fund, the Board shall cause to be prepared for the financial year a statement of accounts of the Fund that—
(a) includes an income and expenditure account and balance sheet; and
(b) is signed by the Chairman of the Board.