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Master Fee Protection Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Master Fee Protection Agreement

"I need a Master Fee Protection Agreement governed by Hong Kong law for a real estate development project, where advance payments from property buyers will be held in trust until construction milestones are met, with expected completion in March 2025."

Document background
The Master Fee Protection Agreement is designed for situations where parties need to establish a secure mechanism for handling advance payments or fees in Hong Kong. This agreement is particularly relevant in business relationships where significant upfront fees are required but parties seek mutual security and transparency in fee handling. The document provides a comprehensive framework for protecting fees through trust or escrow arrangements, ensuring compliance with Hong Kong banking and trust regulations. It addresses key aspects such as payment mechanisms, release conditions, security measures, and dispute resolution procedures. The agreement is commonly used in various sectors including financial services, real estate, and professional services, where secure handling of client funds is paramount. It can be customized to accommodate different business models while maintaining the core protections required under Hong Kong law.
Suggested Sections

1. Parties: Identification of all parties to the agreement including the fee payer, recipient, and any trustee or escrow agent

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Fee Protection Arrangement: Core mechanics of how fees will be protected, including trust or escrow structure

5. Payment Mechanisms: Procedures for payment into and out of the protected account

6. Release Conditions: Specified conditions that must be met for the release of protected fees

7. Rights and Obligations: Detailed responsibilities of each party under the agreement

8. Security Measures: Protections and controls implemented to secure the fees

9. Representations and Warranties: Standard declarations by all parties regarding their capacity and authority

10. Default and Remedies: Consequences and available remedies in case of breach

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Additional Services: Details of any additional services provided beyond basic fee protection, used when the arrangement includes extra services

2. Interest Arrangements: Provisions for handling interest earned on protected fees, included when interest-bearing accounts are used

3. Multi-Currency Provisions: Specific provisions for handling multiple currencies, used for international arrangements

4. Tax Provisions: Specific tax-related obligations and procedures, included when tax implications need to be addressed

5. Insurance Requirements: Additional insurance obligations, included when specific insurance coverage is required

6. Audit Rights: Provisions for auditing the fee protection arrangement, used in high-value or complex arrangements

7. Force Majeure: Provisions for handling unforeseen circumstances, included when specific risk allocation is needed

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of fees and payment schedules

2. Schedule 2 - Account Details: Specifications of the protected account(s) and banking arrangements

3. Schedule 3 - Operating Procedures: Detailed procedures for day-to-day operation of the fee protection arrangement

4. Schedule 4 - Authorized Signatories: List of authorized persons who can approve fee releases

5. Schedule 5 - Release Request Forms: Standard forms for requesting release of protected fees

6. Appendix A - Compliance Requirements: Specific regulatory requirements and compliance procedures

7. Appendix B - Service Level Agreement: Performance standards and service levels if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

Financial Services

Real Estate

Professional Services

Construction

Investment Management

International Trade

Education

Technology Services

Consulting Services

Legal Services

Relevant Teams

Legal

Finance

Compliance

Treasury

Risk Management

Operations

Commercial

Client Services

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Legal Counsel

Compliance Officer

Finance Director

Treasury Manager

Risk Manager

Operations Director

Contract Manager

Account Director

Trust Administrator

Escrow Manager

Commercial Director

Business Development Manager

Financial Controller

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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