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Simple Loan Note Agreement for Hong Kong

Simple Loan Note Agreement Template for Hong Kong

A standardized legal document governed by Hong Kong law that establishes the terms and conditions of a loan arrangement between a lender and borrower. The agreement outlines the key elements of the lending relationship, including the principal amount, interest rate, repayment terms, and default provisions. It incorporates relevant Hong Kong regulatory requirements, particularly those under the Money Lenders Ordinance and Interest Rate Ordinance, while providing a clear framework for both parties' rights and obligations throughout the loan term.

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What is a Simple Loan Note Agreement?

The Simple Loan Note Agreement is a fundamental financing document used in Hong Kong for documenting straightforward lending arrangements between parties. It is particularly suitable for bilateral loans where detailed syndicated loan provisions are not required. This document type complies with Hong Kong's legal and regulatory framework, including the Money Lenders Ordinance and Interest Rate Ordinance, making it suitable for both corporate and individual lending scenarios. The agreement typically contains essential provisions covering loan amount, interest calculations, repayment terms, events of default, and enforcement mechanisms, while allowing for optional security and guarantee arrangements when required.

What sections should be included in a Simple Loan Note Agreement?

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Brief context of the loan arrangement and purpose

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the principal amount and permitted use of funds

5. Interest: Interest rate, calculation method, and payment schedule

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Representations and Warranties: Standard declarations by the borrower about their legal capacity and financial condition

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

9. Remedies: Lender's rights and remedies upon default

10. Notices: How formal communications between parties should be made

11. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Simple Loan Note Agreement?

1. Security: Include when the loan is secured by specific assets or guarantees

2. Guarantor Provisions: Include when there is a third-party guarantor for the loan

3. Conditions Precedent: Include when there are specific conditions that must be met before the loan is advanced

4. Covenants: Include when ongoing obligations of the borrower need to be specified

5. Assignment and Transfer: Include when either party may need to transfer their rights or obligations

6. Tax Provisions: Include when specific tax considerations need to be addressed

7. Information Undertakings: Include when regular financial reporting is required from the borrower

What schedules should be included in a Simple Loan Note Agreement?

1. Repayment Schedule: Detailed breakdown of repayment dates and amounts

2. Form of Drawdown Notice: Standard form for requesting loan disbursement

3. Security Details: Description of any security or collateral (if applicable)

4. Conditions Precedent Documents: List of required documents to be provided before loan disbursement

5. Permitted Security Interests: List of pre-approved security interests (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions



























Clauses























Relevant Industries

Financial Services

Banking

Real Estate

Construction

Manufacturing

Retail

Technology

Professional Services

Healthcare

Education

Small and Medium Enterprises

Start-ups

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretarial

Credit

Commercial

Business Development

Investment

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Legal Counsel

Corporate Lawyer

Compliance Officer

Credit Manager

Risk Manager

Company Secretary

Commercial Director

Business Development Manager

Investment Manager

Loan Officer

Account Manager

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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