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Continuing Guarantee Agreement
"I need a Continuing Guarantee Agreement under Hong Kong law where my company acts as guarantor for a subsidiary's credit facility of HKD 10 million, with the guarantee becoming effective from March 1, 2025, and including provisions for multiple drawdowns."
1. Parties: Identifies the guarantor, creditor, and principal debtor
2. Background: Sets out the context of the guarantee and the relationship between the parties
3. Definitions and Interpretation: Defines key terms used in the agreement and interpretation rules
4. Guarantee and Indemnity: Core section establishing the guarantee obligations and indemnity provisions
5. Extent and Nature of the Guarantee: Details the scope, limitations, and continuing nature of the guarantee
6. Guarantor's Representations and Warranties: Statements of fact and assurances given by the guarantor
7. Payments and Interest: Terms regarding payment obligations, interest, and calculation methods
8. Preservation of Rights: Provisions maintaining the creditor's rights in various circumstances
9. Enforcement and Recovery: Process and rights for enforcing the guarantee and recovering amounts due
10. Termination: Conditions and process for terminating the guarantee
11. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Security: Include when the guarantee is supported by specific security arrangements
2. Multiple Guarantors: Required when there is more than one guarantor, addressing joint and several liability
3. Subordination: Include when the guarantor's rights need to be subordinated to other creditors
4. Costs and Expenses: Detailed section on costs when complex fee arrangements apply
5. Financial Covenants: Include when specific financial requirements are imposed on the guarantor
6. Assignment and Transfer: Detailed provisions when rights under the guarantee may need to be transferred
7. Power of Attorney: Include when the creditor requires specific powers to act on behalf of the guarantor
1. Schedule 1 - Guaranteed Obligations: Details of the underlying obligations being guaranteed
2. Schedule 2 - Guarantee Limit and Interest Calculations: Specific financial limits and interest calculation methods
3. Schedule 3 - Form of Demand: Standard form for making demands under the guarantee
4. Schedule 4 - Security Details: Description of any security provided (if applicable)
5. Schedule 5 - Notice Details: Contact information and notice requirements for all parties
6. Appendix A - Related Agreements: List and details of related agreements referenced in the guarantee
Authors
Banking and Financial Services
Real Estate
Construction
Manufacturing
Trading and Commerce
Professional Services
Retail
Hospitality
Import/Export
Technology
Legal
Finance
Risk Management
Compliance
Treasury
Corporate Secretarial
Credit Control
Commercial Operations
Chief Financial Officer
Finance Director
Legal Counsel
Company Secretary
Credit Manager
Risk Manager
Commercial Director
Treasury Manager
Compliance Officer
Corporate Banking Manager
Senior Legal Manager
Financial Controller
Credit Risk Officer
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