Page:Deposit Protection Scheme Ordinance (Cap. 581).pdf/29

DEPOSIT PROTECTION SCHEME ORDINANCE 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.

38. Subrogation

(1) If the Board makes a payment of compensation to a depositor of a Scheme member from the Fund—
 * (a) subject to subsection (2), the Board is, notwithstanding any rule of law, subrogated, to the extent of the net amount of that payment and, where the amount of that payment is calculated on the basis of a quantification date within the meaning of section 25(1)(a), any interest, calculated in accordance with subsection (5), accrued on the net amount of that payment, to all the rights and remedies of the depositor in relation to all his deposits, whether or not protected deposits, with the Scheme member, in priority over—
 * (i) the rights and remedies of the depositor in relation to those deposits; and
 * (ii) the rights and remedies of any person who is subrogated, whether or not before the Board’s subrogation, to the rights and remedies of the depositor in relation to those deposits; and