Document background
The Inter Credit Agreement is a sophisticated financial instrument used in Hong Kong's banking and finance sector to structure complex lending arrangements involving multiple creditors. It is particularly relevant when multiple financial institutions collaborate to provide credit facilities to a borrower, requiring careful coordination of their respective rights and obligations. The document addresses crucial aspects such as facility sharing, ranking of security interests, voting rights, and payment waterfall arrangements. Compliant with Hong Kong's regulatory framework, including the Banking Ordinance and Money Lenders Ordinance, this agreement type is essential for syndicated lending, club deals, and other multi-lender scenarios where clear inter-creditor relationships need to be established.
