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Law Dictionary Home Dictionary Definition money-lender

Money lender, a few disconnected and isolated transactions would not make a person engaged regularly in Money lending business, Ka Icildawallang v. U. Lokendra Sojour, AIR 1987 SC 2047. [Assam Money-lenders Act, (4 of 1934), s. 2(1)] --The (English) Money-lenders Act, 1900 (63 & 64 Vict. c. 51), by s. 6 defines the expression 'money-lender' therein as including every person whose business is that of money-lending, or who advertises or announces himself or holds himself out in any way as carrying on that business. but not including a pawnbroker (see that title), a Friendly, Building, or Loan Society (see those titles) or a corporation empowered by statute to lend money, or 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 leading of money, in the course of which and for the purposes whereof he lends money; or any body corporate for the time being exempted from registration under this Act by order of the Board of Trade made and published pursuant to regulations of the Board of Trade. The Act, as amended by s. 10 of the (English) Money-lenders Act, 1927 (17 & 18 Geo. 5, c. 21), subjects money-lenders as above defined to the liability of having their contracts judicially varied. Under s. 1, if a borrower is sued by a money-lender for the money lent, and there is evidence satisfying the Court in which the action is brought either that the interest or the sum charged for expenses is excessive, and that 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 relieve the borrower, who may himself institute proceedings and obtain the same relief as if e had been defendant in an action for the loan. As to the grounds on which a Court of Equity would give relief, see Nevill v. Snelling, (1880) 15 Ch D 679. As to the jurisdiction of the county court, see Crossingham v. Park, (1928) 1 KB 330. By the (English) Money-lenders Act, 1927, s. 17, protection is given to the rights of bona fide holders for value without notice under contracts with money-lenders. Under the Act of 1927 a person in order to carry on a money-lending business must obtain a certificate from the petty sessional Court (s. 2), and must take ot annually a money-lender's excise licence (s. 1) in respect of any address at which he carries on business. This licence must be taken out in his true name but shall also show his authorized name and authorized address. He must not carry on his business in any other name or at any other address. S. 3 deals with the suspension and forfeiture of money-lenders' certificates for certain offences, including offences under this and other Acts. S. 5 restricts money-lenders' advertisements. Sub-s. (3) of this s. which prohibits any person from acting as agent or canvasser for a money-lender has reference to canvassers acting with the money-lender's authority, see Verner Jeffreys v. Pinto, (1929) 1 Ch 401. Under s. 6 there must be a note or memorandum in writing of a money-lending contract and a copy must be sent to the borrower, see Eldridge and Morris v. Taylor, (1931) 2 KB 416 (418). By s. 2 (3) of the Act, a money-lender must not carry on business under any name which implies that he carries on banking business, and s. 4 (3) prescribes penalties for a money-lender who issues a document implying that he carries on banking business. Money-lending companies are required to comply with s. 145 of the (English) Companies Act,1929, relating to the publication of names and other particulars of and concerning the directors. See the Acts of 1900 and 1927 and their history, together with the Inland Revenue and Board of Trade Regulations, and notes, in Chitty's Statutes, tit. 'Money-Lenders.' Consult Stone and Meston onMoneylenders.

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