Deed Of Trust Loan Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Deed Of Trust Loan Agreement

"I need a Hong Kong law Deed of Trust Loan Agreement for a HKD 50 million property development loan where a trust company will act as security trustee for a syndicate of five lenders, with the loan to be drawn down in March 2025."

Document background
The Deed of Trust Loan Agreement is a specialized legal instrument commonly used in Hong Kong for structured financing arrangements where a trust structure is required to hold and manage loan assets. This document type is particularly relevant when there's a need to separate legal and beneficial ownership of loan assets, often used in syndicated lending, security trust arrangements, or complex financial structures. The agreement must comply with Hong Kong's robust legal framework, particularly the Trustee Ordinance (Cap. 29) and Money Lenders Ordinance (Cap. 163), and includes comprehensive provisions covering trust declaration, loan terms, trustee powers and duties, security arrangements, and enforcement mechanisms. It's frequently utilized in commercial lending, real estate financing, and structured finance transactions where professional trustees are appointed to manage loan assets on behalf of beneficiaries.
Suggested Sections

1. Parties: Identifies and defines all parties: Lender (Beneficiary), Borrower, and Trustee

2. Background: Explains the context of the loan, the purpose of the trust arrangement, and the intention to create a trust

3. Definitions and Interpretation: Defines key terms used throughout the deed and sets out interpretation rules

4. Declaration of Trust: Formal declaration creating the trust and specifying the trust property

5. Loan Terms: Details of the loan amount, interest rate, repayment terms, and payment mechanics

6. Trust Terms: Specifies the terms upon which the trust property is held, including the trust period

7. Trustee Powers and Duties: Comprehensive list of trustee's powers and obligations in managing the trust property

8. Security and Enforcement: Details of any security provided and enforcement mechanisms available to the trustee

9. Representations and Warranties: Standard and specific representations and warranties from all parties

10. Covenants: Positive and negative obligations of the borrower and other parties

11. Events of Default: Circumstances constituting default and consequences thereof

12. Trustee Remuneration and Indemnity: Provisions for trustee compensation and protection

13. Amendment and Termination: Procedures for modifying the deed and circumstances for trust termination

14. General Provisions: Standard boilerplate clauses including notices, governing law, and jurisdiction

Optional Sections

1. Security Trustee Provisions: Required if the trustee holds security on behalf of multiple beneficiaries

2. Co-Trustee Provisions: Include when multiple trustees are appointed

3. Investment Powers: Needed if the trustee has discretion to invest trust property

4. Tax Provisions: Include detailed tax provisions if complex tax implications exist

5. Foreign Currency Provisions: Required if loan or payments involve multiple currencies

6. Successor Trustee Provisions: Detailed provisions for trustee replacement if high likelihood of trustee changes

7. Third Party Rights: Specific provisions regarding rights of third parties under the Cap. 623

8. Anti-Money Laundering Provisions: Enhanced provisions if required by the nature of the transaction or parties

Suggested Schedules

1. Schedule 1 - Loan Terms: Detailed breakdown of loan amount, interest calculations, and payment schedule

2. Schedule 2 - Security Details: Specific description of any security assets or arrangements

3. Schedule 3 - Forms of Notice: Standard forms for various notices required under the agreement

4. Schedule 4 - Trustee Remuneration: Detailed fee structure and payment terms for the trustee

5. Schedule 5 - Conditions Precedent: List of conditions to be satisfied before the loan is advanced

6. Appendix A - Power of Attorney: Form of power of attorney if required for security enforcement

7. Appendix B - Administrative Forms: Standard forms for loan administration and trust management

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

Real Estate

Investment Management

Private Equity

Family Office

Corporate Finance

Asset Management

Trust Services

Property Development

Wealth Management

Commercial Lending

Professional Services

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Trust Administration

Corporate Secretarial

Investment

Credit

Portfolio Management

Operations

Transaction Management

Relevant Roles

Legal Counsel

Trust Manager

Loan Officer

Compliance Officer

Financial Controller

Risk Manager

Corporate Treasurer

Investment Manager

Trust Administrator

Security Trustee

Portfolio Manager

Relationship Manager

Chief Financial Officer

Director of Finance

Corporate Secretary

Senior Legal 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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