Document background
The Financial Assistance Agreement is a crucial document used in Hong Kong's business environment when one entity provides financial support to another, whether through loans, guarantees, security provision, or other financial arrangements. This agreement type is particularly important in light of Hong Kong's strict regulatory framework, especially sections 274-289 of the Companies Ordinance, which govern financial assistance transactions. The document serves multiple purposes: it protects the interests of both the provider and recipient of financial assistance, ensures compliance with regulatory requirements, establishes clear repayment terms, and documents any security arrangements. It is commonly used in corporate restructuring, acquisition financing, and general corporate funding scenarios, requiring careful consideration of Hong Kong's financial regulations, company law, and market practices.
