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The No Interest Loan Agreement is commonly used in Hong Kong for various lending arrangements where parties wish to formalize an interest-free loan transaction. This document is particularly relevant for family lending, director's loans to companies, inter-company loans within corporate groups, and social impact lending initiatives. It ensures compliance with Hong Kong's legal framework, including the Money Lenders Ordinance and Contract and Rights of Third Parties Ordinance. The agreement covers crucial elements such as loan amount, repayment terms, borrower obligations, and default provisions, while maintaining the interest-free nature of the arrangement. It's essential for protecting both lender and borrower interests in scenarios where traditional commercial lending terms are not desired or appropriate.

1. Parties: Identifies and defines the Lender and Borrower with their full legal names and addresses

2. Background: Sets out the context of the loan and confirms that the Lender has agreed to provide an interest-free loan to the Borrower

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount and the agreed purpose for which the loan may be used

5. Drawdown: Specifies when and how the loan amount will be provided to the Borrower

6. Repayment Terms: Details the repayment schedule, methods of payment, and confirmation that no interest is payable

7. Representations and Warranties: Standard representations and warranties from the Borrower regarding their capacity and ability to repay

8. Borrower's Covenants: Key obligations of the Borrower during the loan term

9. Events of Default: Circumstances that would constitute a default and trigger early repayment

10. Consequences of Default: Actions the Lender may take in case of default

11. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc