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The Promissory Note Between Friends is designed for situations where individuals in Hong Kong seek to formalize personal lending arrangements with their acquaintances or friends. This document type bridges the gap between informal lending and formal financial agreements, providing legal protection while maintaining the personal nature of the transaction. It must comply with Hong Kong's Bills of Exchange Ordinance (Cap. 19) and Money Lenders Ordinance (Cap. 163), particularly regarding interest rate restrictions and formal requirements. The document includes essential elements such as loan amount, payment terms, interest (if any), and default provisions, while being structured in a way that's accessible to non-legal parties. It's particularly useful when the loan amount is significant enough to warrant formal documentation but the parties prefer to avoid commercial lending channels.

1. Parties: Identification of the maker (person promising to pay) and the payee (person to whom payment is promised), including full legal names and addresses

2. Background: Brief context of why the promissory note is being created and the relationship between the parties

3. Definitions: Key terms used in the document defined for clarity

4. Promise to Pay: Unconditional promise to pay a specific sum of money, including the exact amount in both numbers and words

5. Payment Terms: Details of how and when payment(s) will be made, including payment schedule if applicable

6. Interest Rate: Specification of any interest rate charged (if applicable) and how it is calculated

7. Events of Default: Circumstances that constitute default and consequences of default

8. Governing Law: Specification that Hong Kong law governs the promissory note

9. Signatures: Space for dated signatures of both parties and witnesses