Dispute Resolution Newsletter – June 2016
Hong Kong Court of Final Appeal confirms that cash-advance product is not a ‘loan’
Gall was instructed to act for Global Merchant Funding Limited against the Secretary for Justice in this landmark appeal (FACC 4/2015) before the Court of Final Appeal (“CFA”).. The Court of Appeal and the CFA considered the correct interpretation of the terms of a Merchant Cash Advance Contract (“MCA Contract”) in accordance with the established legal principles to ascertain whether the transactions pursuant to the MCA Contract were in substance a loan under the Money Lenders Ordinance, Cap. 163 (“MLO”).