Page:Temporary Protection Measures for Business Tenants (COVID-19 Pandemic) Ordinance (Cap. 644).pdf/10

Temporary Protection Measures for Business Tenants (COVID-19 Pandemic) Ordinance Ord. No. 2 of 2022 Section 7 7. Enforcement of security on certain premises

(1) Where a security is created on any premises (or on any interest in any premises or any rent receivable in respect of any premises) in favour of a lender by the landlord of the premises (subject premises) for a loan (secured loan), and section 5(4) and (5) or section 5(6) applies in relation to the tenancy for the subject premises for a period of time (affected period), subsections (3) and (4) apply in relation to the secured loan if—
 * (a) the tenant fails to pay the rent in compliance with the tenancy, but the landlord’s right to take, or continue to take, any action in respect of the tenant’s failure is subject to section 5; and
 * (b) there is a default during—
 * (i) if section 5(4) and (5) applies in relation to the tenancy—the period beginning on 1 January 2022 and ending on the expiry of the affected period; or
 * (ii) if section 5(6) applies in relation to the tenancy—the affected period,
 * in repayment of any amount of the secured loan (or payment of any other sum in respect of the loan) in compliance with the relevant loan agreement (repayment default) and, having regard to the factors specified in subsection (2), the landlord can reasonably establish that the matters described in paragraph (a) are the sole reason or a significant reason for the landlord’s inability to avoid the repayment default.

(2) The factors are—
 * (a) the nature and magnitude of the tenant’s failure and the repayment default; and