Document background
The Common Terms Agreement is a fundamental document in complex financing arrangements, particularly in syndicated lending transactions under Hong Kong law. It consolidates the terms and conditions that apply across multiple facility agreements, avoiding repetition and potential inconsistencies. This document type is typically used when a borrower enters into multiple facilities with various lenders, establishing a uniform set of representations, warranties, covenants, and events of default. The agreement reflects Hong Kong's common law principles and local market practices, while incorporating international lending standards. It serves as a cornerstone document that other facility agreements can reference, thereby streamlining the documentation process and ensuring consistency across the financing structure.
