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The Bank Guarantee Line agreement is essential for businesses requiring regular issuance of bank guarantees for their operations. It provides a pre-approved facility under which a company can request multiple guarantees up to an agreed limit without negotiating terms for each individual guarantee. This type of agreement is commonly used in Hong Kong by companies engaged in international trade, construction projects, or tender submissions, where bank guarantees are required as security for performance or payment obligations. The document complies with Hong Kong banking regulations and includes detailed provisions for facility utilization, security requirements, and the rights and obligations of all parties. It streamlines the process of obtaining guarantees while providing the bank with necessary protections and the applicant with clear operational parameters.

1. Parties: Identifies the bank providing the guarantee facility and the applicant company

2. Background: Sets out the context of the agreement and the applicant's request for a guarantee facility

3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules

4. The Facility: Details of the guarantee facility including the overall limit and term

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Issuance of Guarantees: Process and requirements for requesting and issuing individual guarantees

7. Fees and Payments: Details of all fees, charges, and payment obligations

8. Representations and Warranties: Standard representations and warranties given by the applicant

9. Undertakings: Ongoing obligations of the applicant during the facility term

10. Events of Default: Circumstances constituting default and consequences

11. Indemnity and Reimbursement: Applicant's obligations to indemnify and reimburse the bank

12. Security: Requirements for security or collateral to support the facility

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

14. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction details