Hong Kong Association of Banks alternative means of payments of funds under payment arrangements for property transactions (PAPT): possible concerns from banks and clients.

Law, Sau Wai; Mak, Charles Ho Wang

Abstract

Hong Kong Association of Banks (HKAB), the DTC Association (DTCA) and the Hong Kong S.A.R. Licensed Money Lenders Association have been working on the provision of an alternative means of payments of funds under Payment Arrangements for Property Transactions (PAPT), which aimed to enhance customer protection by allowing homeowners to refinance their mortgages without the assistance of law firms, by asking their current banks to directly transfer their approved mortgages loans. The Hong Kong Monetary Authority (HKMA) fully endorses and supports the initiative. It is argued that the newly proposed arrangement deliberately eliminated the role of law firms as an agent in the transfer of residential mortgage payments. The following article argues that, although the measure streamlines the process, it might be risky to forego solicitors when payment is involved, for various technical and legal reasons.

Citation

LAW, S.W. and MAK, C.H.W. 2022. Hong Kong Association of Banks alternative means of payments of funds under payment arrangements for property transactions (PAPT): possible concerns from banks and clients. Hong Kong lawyer [online], October 2022, pages 34-37. Available from: https://www.hk-lawyer.org/content/hong-kong-association-banks-alternative-means-payments-funds-under-payment-arrangements

• Journal Article Type: Article
• Acceptance Date: Aug 15, 2022
• Online Publication Date: Oct 11, 2022
• Publication Date: Oct 31, 2022
• Deposit Date: Jul 19, 2023
• Publicly Available Date: Jul 19, 2023
• Journal: Hong Kong lawyer
• Print ISSN: 1025-9554
• Publisher: Thomson Reuters
• Peer Reviewed: Peer Reviewed
• Issue: October 2022
• Pages: 34-37
• Keywords: Mortgages; Refinancing; Hong Kong
• Public URL: https://rgu-repository.worktribe.com/output/2015123
• Publisher URL: https://www.hk-lawyer.org/content/hong-kong-association-banks-alternative-means-payments-funds-under-payment-arrangements
• Additional Information: This article has been published in parallel with a Chinese translation, printed on pages 38-40 of the same journal issue.