Document background
The Facilities Agreement is a fundamental document in commercial lending transactions under Hong Kong law, used to document various types of credit facilities including term loans, revolving facilities, and multi-currency facilities. It serves as the primary agreement between lenders and borrowers, establishing their respective rights and obligations, and incorporating specific requirements of Hong Kong's banking and corporate regulations. The document typically includes detailed provisions on facility terms, conditions precedent, representations and warranties, covenants, events of default, and enforcement mechanisms. It can be structured as either a bilateral agreement between a single lender and borrower or as a syndicated facility involving multiple lenders. The agreement must comply with Hong Kong's Banking Ordinance, Companies Ordinance, and relevant financial regulations while reflecting common law principles applicable in Hong Kong's legal system.
