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Cross Collateral Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Cross Collateral Agreement

"I need a Cross Collateral Agreement under Hong Kong law for a manufacturing company with three existing facility agreements with the same bank, where we want to cross-collateralize real estate assets in Hong Kong and equipment in mainland China."

Document background
A Cross Collateral Agreement is utilized when parties wish to establish a comprehensive security arrangement across multiple facilities or loans. This document is particularly relevant in Hong Kong's dynamic financial market where complex financing structures are common. It is typically employed when a borrower has multiple credit facilities with the same lender(s) and various assets pledged as security, or when a group of companies wishes to create a pooled security arrangement. The agreement details how different security interests secure all obligations, cross-default provisions, enforcement mechanisms, and the application of proceeds. It must comply with Hong Kong security laws, including registration requirements under the Companies Ordinance and property laws. The document is essential for structured finance transactions, corporate lending, and real estate financing where multiple assets and obligations are involved.
Suggested Sections

1. Parties: Identification of the lender(s), borrower(s), and any security providers

2. Background: Context of the existing facilities and security arrangements being cross-collateralized

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and references to facility documents

4. Cross Collateralization: Core provisions establishing that all security interests secure all obligations

5. Secured Obligations: Definition and scope of the obligations being secured

6. Security Interest: Nature and extent of security interests, including any priority arrangements

7. Representations and Warranties: Standard and security-specific representations regarding authority, ownership, and security interests

8. Covenants: Ongoing obligations regarding maintenance and preservation of collateral

9. Enforcement: Rights and remedies upon default, including cross-default provisions

10. Payments and Application of Proceeds: Rules for applying proceeds from any enforcement action

11. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

12. Execution: Signature blocks and execution formalities

Optional Sections

1. Multiple Lenders: Required when there are multiple lenders, covering sharing of security and intercreditor arrangements

2. Currency Provisions: Needed for cross-border transactions involving multiple currencies

3. Third Party Security Provider Provisions: Required when security is provided by entities other than the borrower

4. Special Asset Provisions: Specific provisions for particular types of assets (e.g., real estate, shares, intellectual property)

5. Insurance: Detailed insurance requirements for specific types of collateral

6. Priority Arrangements: Required when there are multiple security interests requiring specific priority arrangements

7. Power of Attorney: Optional appointment of lender as attorney for perfection or enforcement purposes

Suggested Schedules

1. Existing Facilities: Details of all credit facilities being cross-collateralized

2. Existing Security: List and details of all existing security interests being cross-collateralized

3. Security Assets: Detailed description of all assets subject to security interests

4. Forms of Notice: Template notices required for perfection of security

5. Security Documents: List and copies of all related security documents

6. Secured Party Details: Contact details and payment instructions for all secured parties

7. Conditions Precedent: List of required documents and conditions for effectiveness

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
















































Clauses




































Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Infrastructure

Construction

Energy

Mining

Retail

Hospitality

Transportation

Agriculture

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit

Security Administration

Loan Operations

Document Management

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Relationship Manager

Security Trustee

Compliance Officer

Finance Manager

Corporate Banking Manager

Structured Finance Manager

Asset Manager

Property Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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