¶¶Òõ¶ÌÊÓƵ

The Evergreen Loan Agreement serves as a crucial financing instrument in the Hong Kong market, designed for situations where parties require a long-term, flexible lending arrangement with automatic renewal features. This document type is particularly valuable for ongoing business relationships where consistent access to credit is essential. It provides detailed terms for facility renewal, drawdown mechanisms, interest calculations, and repayment structures, while incorporating necessary safeguards and compliance measures required under Hong Kong law. The agreement is structured to comply with Hong Kong banking regulations, including the Money Lenders Ordinance and Banking Ordinance, making it suitable for both financial institutions and corporate borrowers seeking sustainable financing solutions. The evergreen nature of the facility distinguishes it from standard term loans, requiring specific provisions for renewal periods, termination rights, and ongoing compliance monitoring.

1. Parties: Identification of the lender and borrower with their full legal names, registration details, and addresses

2. Background: Context of the loan facility, relationship between parties, and purpose of the evergreen facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement, including specific definitions related to the evergreen nature of the facility

4. The Facility: Details of the loan facility including amount, purpose, evergreen nature, and renewal mechanisms

5. Conditions Precedent: Prerequisites that must be satisfied before the facility becomes available and for subsequent drawings

6. Drawdown Mechanics: Procedures and requirements for drawing down the loan, including notice requirements and drawdown periods

7. Interest and Fees: Interest calculation method, payment dates, default interest, and all applicable fees

8. Repayment and Prepayment: Terms for repayment, prepayment provisions, and mechanics of the revolving facility

9. Evergreen Renewal Provisions: Specific terms governing the automatic renewal of the facility, including conditions and termination rights

10. Representations and Warranties: Standard and specific representations and warranties given by the borrower

11. Covenants: Positive and negative undertakings of the borrower, including financial covenants

12. Events of Default: Circumstances constituting default and consequences thereof

13. Changes to Parties: Provisions regarding assignment, transfer, and succession

14. Payments and Calculations: Payment mechanics, business day conventions, and calculation principles

15. Notices: Communication procedures between parties

16. General Provisions: Miscellaneous legal provisions including severability, amendments, and counterparts

17. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction provisions