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LOANS RECOVERY ORDINANCE, 1951
(CAP 175)
ARRANGEMENT OF SECTIONS
Section
1. Short Title and Application.
2. Interpretation.
3. Power to Court to Re-open
Money-lending Transactions: In
suits by Creditors.
CHAPTER 175.
(Gold Coast.)
McCarthy Cap. 146. Ordinances Nos.
2 of 1918, 30 of 1935.
AN ORDINANCE to amend the law with
respect to the recovery of money
loans.
Date of Commencement. [14th March,
1918.]
Section 1—Short Title and
Application.
This Ordinance may be cited as the
"Loans Recovery Ordinance," and
shall apply to the Gold Coast. (30
of 1935, s.2.)
Section 2—Interpretation.
Court.
In this Ordinance—
"Court" includes the Supreme
Court, and the Chief Justice and
Puisne Judges thereof, sitting
together or separately, and every
Magistrate and every Native
Tribunal or Native Court
constituted or recognised by the
statute law of the Gold Coast for
the time being. (Amended by 30 of
1935, s.2.)
Section 3—Power to Court to
Re-open Money-lending
Transactions: In suits by
Creditors.
(1) Where proceedings are taken in
any Court for the recovery of any
money lent after the commencement
of this Ordinance, or the
enforcement of any agreement or
security made or taken after the
commencement of this Ordinance, in
respect of money lent either
before or after the commencement
of this Ordinance, and there is
evidence which satisfies the Court
that the interest charged in
respect of the sum actually lent
is excessive, or that the amount
charged for expenses, enquires,
fines, bonus, premium, renewals,
or any other charges, are
excessive, and that, in either
case, the transaction is harsh and
unconscionable, or is otherwise
such that a Court of equity would
give relief, the Court may re-open
the transaction, and take an
account between the lender and the
person sued, and may,
notwithstanding any statement or
settlement of the account or any
agreement purporting to close
previous dealings and create a new
obligation, re-open any account
already taken between them, and
relieve the person sued from
payment of any sum in excess of
the sum adjudged by the Court to
be fairly due in respect of such
principal, interest, and charges,
as the Court having regard to the
risk and all the circumstances,
may adjudge to be reasonable; and,
if any such excess has been paid,
or allowed in account, by the
debtor, may order the creditor to
repay it; and may set aside,
either wholly or in part, or
revise, or alter, any security
given or agreement made in respect
of money lent by the lender, and
if the lender has parted with
security may order him to
indemnify the borrower or other
person sued.
At Instance of Debtor.
(2) Any Court in which proceedings
might be taken for the recovery of
money lent by a lender shall have
and may, at the instance of the
borrower or surety or other person
liable, exercise the like powers
as may be exercised under this
section where proceedings are
taken for the recovery of money
lent; and the Court shall have
power, notwithstanding any
provision or agreement to the
contrary, to entertain any
application under this Ordinance
by the borrower or surety, or
other person liable,
notwithstanding that the time for
repayment of the loan, or any
instalments thereof, may not have
arrived.
Application of Section.
(3) The foregoing provisions of
this section shall apply to any
transaction which, whatever its
form may be, is substantially one
of money-lending.
Saving for Bona Fide Assignee,
Etc.
(4) Nothing in the foregoing
provisions of this section shall
affect the rights of any bona fide
assignee or holder for value
without notice.
Saving of Existing Powers.
(5) Nothing in this section shall
be construed as derogating from
the existing powers or
jurisdiction of any Court. |
