Document background
The Revolving Credit Promissory Note is a vital instrument in Hong Kong's commercial lending landscape, primarily used to document revolving credit facilities where borrowers can repeatedly draw down and repay funds up to a predetermined limit. This document type combines the formal requirements of a promissory note under Hong Kong's Bills of Exchange Ordinance with the flexibility of a revolving credit facility. It's particularly useful for businesses requiring ongoing access to credit for working capital or operational needs. The note typically includes comprehensive terms covering credit limits, interest calculations, drawdown mechanisms, repayment schedules, and default provisions. It serves as both a debt acknowledgment and a binding agreement, providing security for lenders while offering borrowers flexibility in managing their credit needs. The document must comply with Hong Kong banking regulations and financial services requirements, making it a crucial tool in commercial lending transactions.
