Document background
The Loan Agreement With Security is a fundamental financing document used when a lender provides funding to a borrower against specific collateral. This agreement, governed by Hong Kong law, combines two essential elements: the loan facility terms and the security arrangements. It is commonly used in both commercial and individual lending scenarios where the lender requires protection beyond mere contractual promises of repayment. The document must comply with Hong Kong regulatory requirements, including the Money Lenders Ordinance, Companies Ordinance, and relevant security registration requirements. It typically includes detailed provisions on loan disbursement, interest calculations, repayment terms, security creation and perfection, representations and warranties, covenants, events of default, and enforcement mechanisms. The security component can cover various types of assets including real property, equipment, receivables, or shares, making it adaptable to different financing needs while maintaining enforceability under Hong Kong law.
