FIRST REPUBLIC

MONEYLENDERS  ORDINANCE, 1951 (CAP 176)

As amended by

ARRANGEMENT OF SECTIONS

Section

1. Short Title.

2. Interpretation.

3. Certain Persons Presumed to be Moneylenders.

4. Licences to be Taken out by Moneylenders.

5. Penalty for Breaches of Section 4.

6. Certificate Required for Grant of Moneylender's Licence.

7. Procedure on Application for a Certificate.

8. Refusal to Grant a Certificate

9. Transfer of Business to other Premises.

10. Suspension and Forfeiture of Moneylender's Certificate.

11. Disqualification for Making use of Forged Certificates.

12. Form of Moneylenders' Contracts.

13. Interest to be Charged by Moneylenders.

14. Rate of Interest where Sums Lent to Same Person at Various Times.

15. Prohibition of Compound Interest and Provision as to Defaults.

16. Apportionment Between Principal and Interest of Amounts Paid by  Borrower.

17. Prohibition of Charge for Expressed Loans by Moneylenders.

18. Employment of Agents or Canvassers by Moneylender Prohibited.

19. Moneylenders to Give Receipts and Keep Record of Transactions.

20. Obligation of Moneylender to Supply Information as to State of Loan and Copies of Documents Relating Thereto.

21. Restrictions on  Moneylending Advertisements.

22. Notice and Information to be given on Assignment of Moneylenders Debts.

23. Application of Ordinance as Respects Assignees.

24. Moneylender to Produce Statement of Account in Proceedings.

25. Inducing Borrowing by False Statements.

26. Penalty for Taking Promissory Note in which Amount is Left Blank or not Truly Stated.

27. Protection of Lenders against Frivolous and Vexatious Actions.

28. Common Informers Compounding Information.

29. Limitation of Time for Proceedings in Respect of Money Lent by Moneylenders.

30. Power of Governing in Council to make Regulations.

SCHEDULES

Schedule A—Calculation of interest where the interest charged on a loan is not expressed in terms of a rate.

Schedule B

Schedule C

Ordinance No. 21 of 1940.

CHAPTER 176.

(Gold Coast.)

AN ORDINANCE RELATING TO MONEYLENDING.

Date of Commencement. [1st February, 1941.]

Section 1—Short Title.

This Ordinance may be cited as the "Moneylenders Ordinance."

Section 2—Interpretation.

In this Ordinance, unless the context otherwise requires —

"Authorised name" and "authorised address" mean respectively the name under which and the address at which a moneylender is authorised by a certificate granted under this Ordinance to carry on business as a moneylender;

"Business name" means the name or style under which any business is carried on, whether in partnership or otherwise;

"Company" means any body corporate being a moneylender;

"Firm" means an unincorporate body of two or more individuals, or one or more individuals and one or more corporations, or two or more corporations, who have entered into partnership with one another with a view to carrying on business for profit;

"Moneylender" means and includes every person whose business is that of moneylending or who carries on or advertises or announces himself or holds himself out in any way as carrying on that business, whether or not he also possesses or owns property or money derived from sources other than the lending of money and whether or not he carries on the business as a principal or as an agent; but shall not include—

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(a) any society registered under the Co-operative Societies Ordinance; or

(b) any body corporate, incorporated or empowered by special Ordinance to lend money in accordance with such Ordinance; or

(c) any person bona fide carrying on the business of banking or insurance or bona fide carrying on any business, not having for its primary object the lending of money, in the course of which and for the purposes whereof he lends money; or

(d) any person or body corporate exempted from the provisions of this Ordinance by Order of the Governor in Council; or

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(e) any pawnbroker licensed under the Pawnbrokers Ordinance, where the loan is made in accordance with the provisions of the Pawnbrokers Ordinance, and does not exceed the sum of fifty pounds.

"Principal" means in relation to a loan the amount actually lent to the borrower.

Section 3—Certain Persons Presumed to be Moneylenders.

Save as excepted in paragraphs (a), (b), (c), (d) and (e) of the definition of "Moneylender" in section 2 any person who lends money at interest or who lends a sum of money in consideration of a larger sum being repaid shall be presumed to be a moneylender until the contrary be proved.

Section 4—Licences to be Taken out by Moneylenders.

(1) Every moneylender, whether carrying on business alone or as a partner in a firm, shall take out annually in respect of every address at which he carries on his business as such, a licence ( in this Ordinance referred to as "moneylender's licence") which shall expire on the 31st day of December next after it is granted, and there shall be charged for every moneylender's licence a fee of ¢2,000.00. [As amended by Moneylenders Ordinance (Amendment) Law, 1983 (PNDCL 57) s.1]

(2) Subject to the provisions of this Ordinance, moneylender's licences shall be in such form as the National Liberation Council may prescribe and shall be granted, on payment of the fee prescribed by subsection (1) by any public  officer authorised by the National Liberation Council to grant them.

(3) A moneylender's licence shall be taken out by a moneylender in the true name of the moneylender and shall be void if it be taken out in any other name and every moneylender's licence shall also show the moneylender's authorised name and address.[As substituted by Moneylenders Ordinance (Amendment) Decree, 1966 (NLCD 88) s.1]

Section 5—Penalty for Breaches of Section 4.

If any person—

(a) takes out a moneylender's licence in any name other than his true name; or

(b) carries on business as a moneylender without being in possession of a valid moneylender's licence authorising him so to do; or

(c) being licensed as a moneylender, carries on business as such in any name other than his authorised name, or at any other place than his authorised address or addresses; or

(d) enters into any agreement in the course of his business as a moneylender with respect to the advance or repayment of money or takes any security for money in the course of his business as a moneylender, otherwise than in his authorised name;

he shall for each offence be liable on summary conviction—

(1) if other than a body corporate, to a fine not exceeding one hundred pounds and in the event of a second or subsequent conviction to imprisonment for three months or a fine of one hundred pounds or both; and

(2) in the case of a body corporate, to a fine of one hundred pounds and in the event of a second or subsequent conviction to a fine of five hundred pounds.

Provided that no prosecution shall be instituted under paragraph (b) without the consent of a Law Officer

Section 6—Certificate Required for Grant of Moneylender's Licence.

(1) A moneylender's licence shall not be granted except to a person who holds a certificate granted in accordance with the provisions of this section authorising the grant of the licence to that person, and a separate certificate shall be required in respect of every separate licence. Any moneylender's licence granted in contravention of this section shall be void.

(2) Application for a certificate under this section (in this Ordinance referred to as a certificate) shall be made to the District Commissioner of the District in which the moneylender's business is to be carried on and may be granted or refused by such District Commissioner in accordance with the provisions of this Ordinance.

(3) Every certificate granted to a moneylender shall show his true name and the name under which, and the address at which, he is authorised by the certificate to carry on business as such, and a certificate shall not authorise a moneylender to carry on business at more than one address, or under more than one name, or under any name which includes the word "bank" or otherwise implies that he carries on banking business, and no certificate shall authorise a moneylender to carry on business under any name except—

(a) his true name; or

(b) the name of a firm in which he is a partner, not being a firm required by the Registration of Business Names Ordinance, to be registered.

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(4) A certificate shall come into force on the date specified therein, and shall expire on the thirty-first day of December next following.

(5) If any person is aggrieved by the refusal of the District Commissioner to grant a certificate, he may within one month appeal to the Governor in Council whose decision thereon shall be final and conclusive.

Section 7—Procedure on Application for a Certificate.

A person intending to apply for a certificate under this Ordinance shall, fourteen days at least before the application, give notice of his intention by registered letters sent by post to the District Commissioner of the District, and to the officer in charge of the police at the place where he proposes to carry on business, and shall in the notice set forth his name and address and the address at which he proposes to carry on his business.

Section 8—Refusal to Grant a Certificate.

A certificate shall not be refused except on one or more of the following grounds—

(a) that satisfactory evidence has not been produced of the good character of the applicant, and in the case of a company of the persons responsible for the management thereof;

(b) that satisfactory evidence has been produced that the applicant, or any person responsible  or proposed to be responsible, for the management of his business as a moneylender, is not a fit and proper person to hold a certificate;

(c) that the applicant, or any person responsible or proposed to be responsible for the management of his business as a moneylender, is by order of a Court disqualified for holding a certificate;

(d) that the applicant is disqualified under section 11 for the grant of a moneylender's licence;

(e) that the applicant has not complied with the provisions of any regulation made with respect to applications for certificates.

Section 9—Transfer of Business to Other Premises.

(1) A moneylender shall not transfer his business to premises other than those specified in his licence, until he has notified the District Commissioner of the proposed transfer.

(2) Any moneylender contravening the provisions of this section shall be liable to a fine not exceeding ten pounds.

Section 10—Suspension and Forfeiture of Moneylender's Certificate.

(1) Where any person, being the holder of a certificate, is convicted of any offence under this Ordinance the Court —

(a) may order that any certificate held by that person, and in the case of a partner in a firm by any other partner in the firm, shall either be suspended for such time as the Court thinks fit, or shall be forfeited, and may also, if the Court thinks fit, declare any such person, or any person responsible for the management of the moneylending business carried on by the person convicted, to be disqualified for obtaining a certificate for such time as the Court thinks fit; and

(b) shall cause particulars of the conviction and of any order made by the Court under this subsection to be endorsed on every certificate held by the person convicted or by any other person affected by the order, and shall cause copies of those particulars to be sent to the authority by whom any certificate so endorsed was granted, and to the Commissioner of Police:

Provided that, where by order of a Court a certificate held by any person is suspended or forfeited, or any person is disqualified for obtaining a certificate, he may, whether or not he is the person convicted, appeal against the order in the same manner as any person convicted may appeal against his conviction, and the Court may, if it thinks fit, pending the appeal, defer the operation of the order.

(2) Any certificate required by a Court for endorsement in accordance with the foregoing provisions of this section shall be produced, in such manner and within such time as may be directed by the Court, by the person by whom it is held, and any person who, without reasonable cause, makes default in producing any certificate so required shall, in respect of each offence, be liable to a fine not exceeding one pound for each day during which the default continues.

(3) Where a certificate held by any person is ordered to be suspended or to be forfeited under the foregoing provisions of this section, any moneylender's licences granted to that person, whether in pursuance of that or any other certificate, shall be suspended during the period for which the certificate is ordered to be suspended or become void, as the case may be.

Section 11—Disqualification for Making use of Forged Certificates.

A licence granted in pursuance of a forged certificate shall be void; and if any person makes use of a forged certificate, knowing it to be forged, he shall be disqualified for the grant of a moneylender's licence at any time thereafter.

Section 12—Form of Moneylenders' Contracts.

(1) No contract by a borrower or his agent for the repayment or securing of money lent to the borrower or to any agent on his behalf by a moneylender or for the payment by the borrower or by any agent on his behalf of interest on money so lent and no security given by the borrower or by any such agent as aforesaid in respect of any such contract shall be enforceable, unless a memorandum in writing of the contract be made and signed by the parties to the contract or their respective agents, or in the case of a loan to a firm, by a partner in or agent of the firm, and unless a copy of such memorandum be delivered or sent by post to the borrower or his agent within seven days of its having been so signed and certified; and no such contract or security shall be enforceable if it is proved that the memorandum aforesaid was not signed by the borrower before the money was lent or before the security was given as the case may be:

Provided always that, where a security is given to secure an immediate loan and subsequent loans, the security shall be enforceable in respect of any subsequent loan thereby secured if the note or memorandum in respect of such subsequent loan be signed and delivered to the borrower before the money shall be lent.

(2) In this section the expression "borrower" includes a surety.

(3) The memorandum aforesaid shall contain all the terms of the contract, and in particular shall show separately and distinctly—

(a) the date on which the loan is made;

(b) the amount of the principal of the loan; and

(c) the rate of interest per centum per annum, payable in respect of the loan or, where the interest is not expressed in terms of a rate per centum per annum, the amount of such interest.

All dates and numbers shall be written in English numerals notwithstanding that they are also written in any other way.

Section 13—Interest to be Charged by Moneylenders.

(1) Where, in any proceedings in respect of any money lent by a moneylender or by any person other than a moneylender after the commencement of this Ordinance, or in respect 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, it is found that —

(a) on a loan secured by a first charge on any real or personal property, or by the indemnity or personal guarantee of a third party, the interest exceeds the rate of 15 per cent per annum for the first £500 or part thereof or 12½ per cent on any amount in excess of £500; or

(b) on a loan secured by a second charge on any real or personal property, the interest exceeds the rate of 17½ per cent per annum for the first £500 or part thereof or 15 per cent per annum on any amount in excess of £500; or

(c) on an unsecured loan the interest exceeds the rate of 30 per cent per annum

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or the corresponding rate in respect of any other period, the Court, notwithstanding any native law or custom to the contrary, shall, unless the contrary is proved, presume for the purposes of section 3 of the Loans Recovery Ordinance, that the interest charged is excessive and that the transaction is harsh and unconscionable, but this provision shall be without prejudice to the powers of the Court under that section where the Court is satisfied that the interest charged, although not exceeding the rates mentioned in this section, is excessive.

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(2) Where a Court reopens a transaction of a moneylender under the said section 3 of the Loans Recovery Ordinance, the Court may require the moneylender to produce any certificate granted to him in accordance with the provisions of this Ordinance, and may cause such particulars as the Court thinks desirable to be endorsed on any such certificate, and a copy of the particulars to be sent to the authority by whom the certificate was granted.

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(3) The powers of a Court under the said subsection (3) of section 1 of the Loans Recovery Ordinance may be exercised notwithstanding that the moneylender's right of action for the recovery of the money lent is barred.

Section 14—Rate of Interest where Sums Lent to Same Person at Various Times.

(1) If several sums are loaned to the same person, whether at the same or different times, the rate of interest on the aggregate sum loaned, or owing at the date the last sum is loaned, shall be the rate of interest for the purposes of section 13 as if the whole amount then owing had been loaned as one transaction.

(2) The interest shall constitute a comprehensive charge to include all discounts, commissions, bonuses, fines, expenses, and any amount by whatsoever name called, in excess of the principal, paid or payable to the lender in consideration of or otherwise in respect of a loan, but shall not include charges, expenses or costs in respect of —

(a) stamp duties;

(b) registration of any document in accordance with the provisions of any law;

(c) preparation of any document by a qualified legal practitioner;

(d) investigation of title to any property;

(e) insurance on property;

(f) obtaining a copy of the record of the judgment of any  Court;

(g) inspection of any property by the mortgagee prior to the mortgage;

or any costs specifically allowed by any court before which the matter may come for adjudication.

Section 15—Prohibition of Compound Interest and Provision as to Defaults.

(1) Subject as hereinafter provided, any contract made after the commencement of this Ordinance for the loan of money by a moneylender shall be illegal in so far as it provides directly or indirectly for the payment of interest in advance whether by deduction of any amount from the principal sum borrowed or otherwise, or for the payment of compound interest on the loan or for the rate or amount of interest being increased by reason of any default in the payment of sums due under the contract:

Provided that provision may be made by any such contract that if default is made in the payment upon the due date of any sum payable to the moneylender under the contract, whether in respect of principal or interest, the moneylender shall be entitled to charge simple interest on that sum from the date of the default until the sum is paid, at a rate not exceeding the rate payable in respect of the principal apart from any default, and any interest so charged shall not be reckoned for the purposes of this section as part of the interest charged in respect of the loan.

(2) Any moneylender contravening the provisions of this section shall be liable to fine not exceeding fifty pounds in respect of each such loan.

Section 16—Apportionment Between Principal and Interest of Amounts Paid by  Borrower.

(1) Where by a contract for the loan of money by a moneylender the interest charged on the loan is not expressed in terms of a rate, any amount paid or payable to the moneylender under the contract other than simple interest shall be appropriated to principal and interest in the proportion that the principal bears to the total amount of the interest.

Method of Calculating Rate of Interest when not expressed in terms of a Rate. 

Schedule A.

Schedule B.

(2) Where the interest charged on a loan of money is not expressed in terms of a rate per centum per annum the rate of interest per centum per annum charged on the loan shall be calculated in accordance with the provisions of Schedule A or, where the contract provides for the payment of equal instalments of principal and interest at equal intervals of time, in accordance with the formula given in Schedule B.

Section 17—Prohibition of Charge for Expressed Loans by Moneylenders.

Any agreement between a moneylender and a borrower or intending borrower for the payment by the borrower or intending borrower to the moneylender of any sum on account of costs, charges or expenses incidental to or relating to the negotiations for or the granting of the loan or proposed loan shall be illegal, and if any sum is paid to such moneylender by a borrower or intending borrower for or on account of any such costs, charges or expenses that sum shall be recoverable as a debt due to the borrower or intending borrower, or, in the event of the loan being completed, shall, if not so recovered, be set off against the amount actually lent and that amount shall be deemed to be reduced accordingly:

Provided that the provisions of this section shall not apply to the charges, expenses and costs specified in section 14 (2) as charges, expenses and costs excluded from those constituting interest.

Section 18—Employment of Agents or Canvassers by Moneylender Prohibited.

(1) No moneylender or any person acting on behalf of a moneylender shall employ any agent or canvasser for the purpose of inviting any person to borrow money or to enter into any transaction involving the borrowing of money from such moneylender, and no person shall act as such agent or canvasser, or demand or receive directly or indirectly any sum or other valuable consideration by way of commission or otherwise for introducing or undertaking to introduce to a moneylender any person desiring to borrow money.

(2) Any contract by the borrower to pay to an agent or canvasser of a moneylender a commission for obtaining a loan shall be null and void, and if any sum has been paid by way of commission or otherwise for such service, the agent or canvasser shall be liable to a fine not exceeding twenty pounds.

Section 19—Moneylenders to Give Receipts and Keep Record of Transactions.

(1) Every moneylender shall give a receipt for every payment made to him on account of a loan or of interest thereon.  Every such receipt shall be given immediately the payment is made.

(2) Every moneylender shall keep a book (which shall be securely bound and paged so that leaves cannot be removed or inserted without apparent damage) in which he shall enter in connection with every loan made by him —

(a) the date on which the loan was made;

(b) the amount of the principal;

(c) the rate of interest;

(d) all sums received in respect of the loan or the interest thereon, with the dates of payment thereof

and shall produce such book when required to do so by any Court.

(3) The entries in the said book shall be made forthwith on the making of the loan or the receipt of sums paid in respect thereof as the case may be.

(4) Any moneylender who fails to comply with any of the requirements of this section shall not be entitled to enforce any claim in respect of any transaction in relation to which the default shall have been made.  He shall also be guilty of an offence under this Ordinance and shall be liable to a fine not exceeding ten pounds or in the case of a continuing offence to a fine not exceeding five pounds for each day or part of a day during which such offence continues.

Section 20—Obligation of Moneylender to Supply Information as to State of Loan and Copies of Documents Relating Thereto.

(1) In respect of every contract for the repayment of money lent by a moneylender (whether made before or after the commencement of this Ordinance) the moneylender shall, on any reasonable demand in writing being made by the borrower at any time during the continuance of the contract and on tender by the borrower of the sum of one shilling for expenses, supply to the borrower, or, if the borrower so requires, to any person specified in that behalf in the demand, a statement signed by the moneylender or his agent showing—

(a) the date on which the loan was made, the amount of the principal of the loan and the rate per centum per annum of interest charged; and

(b) the amount of any payment already received by the moneylender in respect of the  loan or the interest thereon and the date on which it was made; and

(c) the amount of every sum due to the moneylender, but unpaid, and the date upon which it became due, and the amount of interest accrued due and unpaid in respect of every such sum; and

(d) the amount of every sum not yet due which remains outstanding, and the date upon which it will become due.

Schedule C

A statement of account in the form in Schedule C shall be deemed to comply with the requirements of this subsection.

(2) A moneylender shall, on any reasonable demand in writing by the borrower, and on tender of a reasonable sum for expenses, supply a copy of any document relating to a loan made by him or any security therefor, to the borrower, or if the borrower so requires, to any person specified in that behalf in the demand.

(3) If a moneylender to whom a demand has been made under this section fails without reasonable excuse to comply therewith within one month after the demand has been made, he shall not, so long as the default continues, be entitled to sue for or recover any sum due under the contract on account either of principal or interest, and interest shall not be chargeable in respect of the period of the default, and if such default is made or continued after proceedings have ceased to lie in respect of the loan, the moneylender shall be liable to a fine not exceeding one pound for every day on which the default continues.

Section 21—Restrictions on  Moneylending Advertisements.

(1) No person shall knowingly send or deliver or cause to be sent or delivered to any person except in response to his written request any circular or other document advertising the name, address or telephone number of a moneylender, or containing an invitation—

(a) to borrow money from a moneylender;

(b) to enter into any transaction involving  the borrowing of money from a moneylender;

(c) to apply to any place with a view to obtaining information or advice as to borrowing any money from a moneylender.

(2) Subject as hereinafter provided, no person shall publish or cause to be published in any newspaper or other printed paper issued periodically for public circulation, or by means of any poster or placard, an advertisement advertising any such particulars, or containing any such invitation, as aforesaid:

Provided that an advertisement by a moneylender licensed under this Ordinance may be published by or on behalf of a moneylender in any newspaper or other printed paper issued periodically for public circulation or by means of any poster or placard exhibited at an authorised address of the moneylender if it contains no particulars other than the following —

(a) the name under which the moneylender is authorised by the certificate granted under section 6 to carry on business; and

(b) any authorised address at which the moneylender carries on business and the telegraphic address and telephone number thereof; and

(c) any address at which he formerly carried on  business; and

(d) a statement that he lends money with or  without security; and

(e) a statement of the highest and lowest sums that he is prepared to lend; and

(f) a statement of the date on which the business carried on by him was first established.

(3) Where any document issued or published by or on behalf of a moneylender purports to indicate the terms of interest upon which he is willing to make loans or any particular loan, the document shall either express the interest proposed to be charged in terms of a rate per centum per annum or show the rate per centum per annum represented by the interest proposed to be charged as calculated in accordance with the provisions of Schedule A or B.

(4) Any person acting in contravention of any of the provisions of this section shall be liable to imprisonment for three months or to a fine of fifty pounds or to both such imprisonment and fine.

(5) Where it is shown that a moneylending transaction was brought about by a contravention of any of the provisions of this section, the transaction shall be illegal, unless the moneylender proves that the contravention occurred without his consent or connivance.

Section 22—Notice and Information to be given on Assignment of Moneylenders Debts.

(1) Where any debt in respect of money lent by a moneylender, whether before or after the commencement of this Ordinance, or in respect of interest on any such debt or the benefit of any agreement made or security taken in respect of any such debt or interest is assigned to any assignee, the assignor (whether he is the moneylender by whom the money was lent or any person to whom the debt has been previously assigned) shall, before the assignment is made —

(a) give to the assignee notice in writing that the debt, agreement or security is affected by the operation of this Ordinance; and

(b) supply to the assignee all information necessary to enable him to comply with the provisions of this Ordinance relating to the obligation to supply information as to the state of loans and copies of documents relating thereto;

and any person acting in contravention of any of the provisions of this section shall be liable to indemnify any other person who is prejudiced by the contravention, and shall also in respect of each offence be liable to imprisonment for a term not exceeding six months or to a fine not exceeding one hundred pounds.

(2) In this section the expression "assigned" means assigned by any assignment inter vivos other than an assignment by operation of law, and the expressions "assignor" and "assignee" have corresponding meanings.

Section 23—Application of Ordinance as Respects Assignees.

(1) Subject as hereinafter provided, the provisions of this Ordinance shall continue to apply to any debt to a moneylender in respect of money lent by him after the commencement of this Ordinance or in respect of interest on money so lent or of the benefit of any agreement made or security taken in respect of any such debt or interest, notwithstanding that the debt or benefit of the agreement or security may have been assigned to any assignee, and, except where the context otherwise requires, references in this Ordinance to a moneylender shall accordingly be construed as including any such assignee as aforesaid:

Provided that notwithstanding anything in this Ordinance—

(i) any agreement with, or security taken by, a  moneylender in respect of money lent by him after the commencement of this Ordinance shall be valid in favour of any bona fide assignee or holder for value without notice of any defect due to the operation of this Ordinance and of any person deriving title under him; and

(ii) any payment or transfer of money or property made bona fide by any person, whether acting in a fiduciary capacity or otherwise, on the faith of the validity of any such agreement or security, without notice of any such defect shall, in favour of that person, be as valid as it would have been if the agreement or security had been valid; and

(iii) the provision of this Ordinance limiting the time for proceedings in respect of money lent shall not apply to any proceedings in respect of any such agreement or security commenced by a bona fide assignee or holder for value without notice that the agreement or security was affected by the operation of this Ordinance, or by any person deriving title under him;

but in every such case the moneylender shall be liable to indemnify the borrower or any other person who is prejudiced by virtue of this section and nothing in this proviso shall render valid an agreement or security in favour of, or apply to proceedings commenced by, an assignee or holder for value who is himself a moneylender.

(2) Nothing in this section shall render valid for any purpose any agreement, security, or other transaction which would, apart from the provisions of this Ordinance, have been void or unenforceable.

Section 24—Moneylender to Produce Statement of Account in Proceedings.

(1) Where proceedings are taken in any Court by any person for the recovery of any money lent, or the enforcement of any agreement or security made or taken in respect of money lent, the plaintiff shall produce a statement of  his account as prescribed in section 20.

Power of Court to Determine Contract.

(2) Where in any such proceedings there is evidence which satisfies the Court that default in payment of any sum due to the plaintiff under a contract for the loan of money has been made by the borrower and it is proved that any further amount is outstanding under the contract but not yet due, the Court may determine the contract and order the principal outstanding to be paid to the plaintiff with such interest thereon, if any, as the Court may allow up to the date of payment.

Application to all Moneylending Transactions.

(3) The foregoing provisions of this section shall apply to any transaction which, whatever its form may be, is substantially one of moneylending.

Bona Fide Assignee.

(4) Nothing in the foregoing provisions of this section shall affect the rights of any bona fide assignee or holder for value without notice.

Existing Powers of Court.

(5) Nothing in this section shall be construed as derogating from the existing powers or jurisdiction of any Court.

Section 25—Inducing Borrowing by False Statements.

If any moneylender, or any person being a manager, agent or clerk of a moneylender, or a director, manager or other officer of any corporation carrying on the business of a moneylender by any false, misleading, or deceptive statement, representation, or promise, or by any dishonest concealment of material facts, fraudulently induces or attempts to induce any person to borrow money or to agree to the terms on which money is or is to be borrowed, shall be liable to imprisonment for any term not exceeding six months, or to a fine not exceeding one hundred pounds.

Section 26—Penalty for Taking Promissory Note in which Amount is Left Blank or not Truly Stated.

(1) Any moneylender who shall take as security for any loan, a promissory note or other contract for the repayment of money lent in which the principal is to the knowledge of the lender not truly stated, or is left blank, shall be guilty of an offence, and shall be liable to a fine not exceeding one hundred pounds or in the event of a second or subsequent conviction to imprisonment for three months or a fine of one hundred pounds or both:

Provided that if the offender be a body corporate that body corporate shall be liable on summary conviction for a second or subsequent offence to a fine of five hundred pounds.

(2) Every such promissory note or other contract in respect of which an offence has been committed under this section shall, subject to the provisions of section 23, be void and unenforceable.

Section 27—Protection of Lenders Against Frivolous and Vexatious Actions.

(1) In any civil proceedings in which a borrower pleads any of the provisions of this Ordinance (whether in any plaint, defence, or other pleading, or in any affidavit or application for the purpose of obtaining leave to defend any action) if the Court is satisfied that such plea was not made in good faith, but was made for the purpose of delaying or harassing the moneylender, the Court may, in addition to any penalties incurred under any other law, order such borrower to pay for the benefit of the moneylender a sum not exceeding five pounds by way of compensation and the costs incurred by the moneylender in the proceeding to such an amount as shall be determined by the Court, and every such sum so ordered to be paid shall be added to the amount of the judgment recoverable by the moneylender.

(2) In any criminal proceeding instituted against a moneylender for a breach of any provision of this Ordinance, if the Court is satisfied that the charge was made maliciously, frivolously, or vexatiously, it may direct that a sum not exceeding five pounds by way of compensation and the costs of the accused to such an amount as shall be determined by the Court shall be paid by the informer or complainant, and any amount so ordered to be paid shall be recoverable for the benefit of the accused in the same manner as a fine imposed by the Court.

Section 28—Common Informers Compounding Information.

If any person lays a complaint for an offence alleged to have been committed against this Ordinance by which he was not personally aggrieved, and afterwards directly or indirectly receives, without the permission of a Court, any sum of money or other reward for compounding, delaying, or withdrawing the complaint, he shall for such offence be liable to a fine not exceeding fifty pounds.

Section 29—Limitation of Time for Proceedings in Respect of Money Lent by Moneylenders.

No proceedings shall lie for the recovery by a moneylender of any money lent by him after the commencement of this Ordinance, or of any interest in respect thereof, or for the enforcement of any agreement made or security taken after the commencement of this Ordinance in respect of any loan made by him, unless the proceedings are commenced before the expiration of twelve months from the date on which the cause of action accrued:

Provided that —

(a) if during the period of twelve months aforesaid or at any time within any subsequent period during which proceedings may by virtue of this proviso be brought, the debtor acknowledges in writing the amount due and gives a written undertaking to the moneylender to pay that amount, proceedings for the recovery of the amount due may be brought at any time within a period of twelve months from the date of the acknowledgment and undertaking;

(b) the time limited by the foregoing provisions of  this section for the commencement of proceedings shall not begin to run in respect of any payments from time to time becoming due to a moneylender under a contract for the loan of money until a cause of action accrues in respect of the last payment becoming due under the contract;

(c) if at the date on which the cause of action accrues or on which any such acknowledgment and undertaking as aforesaid is given by the debtor, the person entitled to take the proceedings is non compos mentis, the time limited by the foregoing provisions of this section for the commencement of proceedings shall not begin to run until that person ceases to be non compos mentis or dies, whichever first occurs; and

(d) if at the date on which the cause of action accrues or on which any such acknowledgment and undertaking as aforesaid is given by the debtor, the debtor is not in the Gold Coast, the time limited by the foregoing provisions of this section for the commencement of proceedings shall not begin to run until he returns to the Gold Coast.

Section 30—Power of Governing in Council to make Regulations.

The Governor in Council may make regulations —

(1) Prescribing the procedure to be followed in making applications for certificates.

(2)  Prescribing the form of notices to be given of intention to make application for certificates.

(3)  Prescribing the form of the certificate.

(4) Prescribing the form of moneylender's licence.

(5)  Regulating the issue of licences to moneylenders.

(6) Establishing a Registry Office for the registration of licences issued under the Ordinance.

(7) Appointing a Registrar of Moneylenders and such assistants to the Registrar as may be necessary.

(8) Providing for the supply of information to the Registrar of Moneylenders relating to the issue, suspension and cancellation of licences and the disqualification of any person from  holding a licence.

(9)  Providing for the supply to any person of an extract of any particulars registered in the Registry and prescribing the fees to be paid therefor.

(10) Generally for the better carrying into effect of  the purposes of this Ordinance.

SCHEDULES.

SCHEDULE A.

 (Sections 16 and 21(3).)

CALCULATION OF INTEREST WHERE THE INTEREST CHARGED ON A LOAN IS NOT EXPRESSED IN TERMS OF A RATE.

1. The amount of principal outstanding at any time shall be taken to be the balance remaining after deducting from the principal the total of the portions of any payments appropriated to principal in accordance with the provisions of this Ordinance.

2. The several amounts taken to be outstanding by way of principal during the several periods ending on dates on which payments are made, shall be multiplied in each case by the number of calendar months during which those amounts are taken to be respectively outstanding, and there shall be ascertained the aggregate amount of the sum so produced.

3. The total amount of the interest shall be divided by one-twelfth part of the aggregate amount mentioned in paragraph 2 of this Schedule, and the quotient, multiplied by one hundred, shall be taken to be the rate of interest per centum per annum.

4. If having regard to the intervals between successive payments it is desired so to do, the calculation of interest may be made by reference to weeks instead of months, and in such case the foregoing paragraph shall have effect as though in paragraph 2 the word "weeks" were substituted for the words "calendar months", and in paragraph 3 the words "one-fifty-second" were substituted for the words "one-twelfth."

5. Where any interval between successive payments is not a number of complete weeks or complete months, the foregoing paragraphs shall have effect as though one day were one-seventh part of a week or one-thirtieth part of a month, as the case may be.

SCHEDULE B.

(Sections 16 and 21(3).)

Formula to be used to find the rate per centum per annum where no rate is stated, and repayment is to be made by equal instalments at equal intervals of time.

100 x I x 24

N + I x P x L

Where I = Total interest repayable

N = Number of instalments

P = Principal

L = Number of calendar months in the intervals between instalments.

SCHEDULE C.

(Section 20).

 TABLE 1.—PRINCIPAL AND INTEREST—SUBSECTION 1 (a).

Principal.        Date lent.        Rate per cent per annum or the amount of interest.         

   £

1.               s.                     d.                                      

2.                                                        

3.                                                        

4.                                                        

5.                                                        

6.                                                        

7.                                                        

TABLE 2—REPAYMENT—SUBSECTION 1 (b).

Amount repaid.          Amount of Interest paid.       Date due.      

  £

1.            s.           d.                     £          s.                   d.                 

TABLE 3—AMOUNT OF ARREARS—SUBSECTION 1 (c).

Principal.        Date Due.      Interest.           Date due.      

  £

1.            s.        d.                       £         s.        d.                  

2.                                                                                            

3.                                                                                            

4.                                                                                            

5.                                                                                            

6.                                                                                            

7.                                                                                            

TABLE 4—SUMS NOT YET DUE—SUBSECTION 1 (d).

Principal.        Date due.       Interest.           Date due.      

   £

1.            s.         d.                      £         s.         d.                 

ssity of a writing by the operat