Document background
The Loan Agreement is a crucial document used to formalize lending arrangements under Hong Kong law. It is typically employed when one party (the lender) agrees to provide financial accommodation to another party (the borrower) under specific terms and conditions. The agreement captures essential elements including the facility amount, interest calculations, repayment structure, security arrangements, and various protections for the lender. It must comply with Hong Kong regulatory requirements, particularly the Money Lenders Ordinance and banking regulations where applicable. This document is vital for both corporate and individual lending transactions, ranging from simple bilateral loans to complex syndicated facilities, and can be adapted to various business purposes such as working capital, asset acquisition, or project financing.
