Bank Account Government Guarantee Template for Hong Kong

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Key Requirements PROMPT example:

Bank Account Government Guarantee

"I need a Bank Account Government Guarantee document for a new fintech payment system launching in March 2025, where the Hong Kong government will guarantee accounts up to HKD 500,000 per user for a pilot program involving three licensed banks."

Document background
The Bank Account Government Guarantee is a crucial document used in Hong Kong's financial system to provide government backing for specific bank accounts within authorized institutions. This arrangement is typically implemented to enhance financial stability, protect specific types of deposits, or support particular government initiatives. The guarantee document establishes the legal framework under Hong Kong law for government support of designated accounts, detailing the scope of coverage, activation conditions, and claim procedures. It incorporates necessary compliance elements with Hong Kong banking regulations, anti-money laundering requirements, and public finance rules. This type of guarantee is particularly relevant in scenarios involving public funds, special government programs, or situations requiring enhanced deposit protection beyond standard deposit insurance schemes.
Suggested Sections

1. Parties: Identification of the Government of Hong Kong SAR (as guarantor), the Bank (as beneficiary), and any other relevant parties

2. Background: Context of the guarantee, including the purpose and basic framework of the arrangement

3. Definitions: Definitions of key terms used throughout the guarantee document

4. Scope of Guarantee: Clear description of what is being guaranteed, including account types and coverage limits

5. Terms of Guarantee: Specific conditions under which the guarantee applies and the government's obligations

6. Trigger Events: Events that would activate the guarantee and the process for calling on it

7. Payment Mechanism: Procedures and timeframes for payment under the guarantee

8. Bank's Obligations: Requirements and duties of the bank in relation to the guaranteed accounts

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

10. Duration and Termination: Term of the guarantee and circumstances under which it can be terminated

11. Governing Law and Jurisdiction: Confirmation of Hong Kong law as governing law and jurisdiction for disputes

Optional Sections

1. Multiple Account Provisions: Additional provisions for cases where multiple accounts or account types are covered

2. Special Conditions: Any specific conditions or requirements for particular account types or circumstances

3. Foreign Currency Provisions: Special provisions for accounts held in currencies other than HKD

4. Review and Adjustment: Procedures for periodic review and adjustment of guarantee terms

5. Reporting Requirements: Specific reporting obligations if required for certain types of accounts

6. Force Majeure: Provisions dealing with extraordinary events affecting the guarantee

7. Anti-Money Laundering Compliance: Additional compliance requirements for high-risk or specially designated accounts

Suggested Schedules

1. Schedule 1 - Guaranteed Accounts: Detailed list of account numbers and types covered by the guarantee

2. Schedule 2 - Coverage Limits: Specific monetary limits and any sub-limits applicable to different account types

3. Schedule 3 - Claim Procedures: Detailed procedures and forms for making claims under the guarantee

4. Schedule 4 - Required Documentation: List of documents required for verification and claim processing

5. Schedule 5 - Authorized Signatories: List of persons authorized to act under the guarantee

6. Appendix A - Standard Forms: Templates for notices, claims, and other standard communications

7. Appendix B - Compliance Requirements: Detailed compliance obligations and reporting requirements

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

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Government and Public Sector

Financial Technology

Payment Services

Treasury Services

Regulatory Compliance

Public Finance

Relevant Teams

Legal

Compliance

Treasury

Risk Management

Government Relations

Regulatory Affairs

Banking Operations

Financial Control

Account Management

Policy and Advisory

Relevant Roles

Chief Financial Officer

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Banking Operations Director

Government Relations Manager

Regulatory Affairs Director

Account Relationship Manager

Public Finance Officer

Banking Policy Advisor

Financial Controller

Deputy Director of Banking

Head of Financial Institutions

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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