Investment Loan Contract Template for Hong Kong

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Key Requirements PROMPT example:

Investment Loan Contract

"I need an Investment Loan Contract for a HKD 10 million facility between ABC Bank Limited as lender and XYZ Investment Holdings as borrower, where the loan will be used exclusively for purchasing Hong Kong listed securities, with the loan to be drawn down by March 2025."

Document background
The Investment Loan Contract is a specialized financing agreement used when a lender provides funding to a borrower specifically for investment purposes under Hong Kong law. This document is particularly relevant in Hong Kong's sophisticated financial markets where investment-linked lending is common. The contract combines elements of traditional loan agreements with specific investment-related provisions, ensuring compliance with Hong Kong's banking and securities regulations. It is typically used by financial institutions, investment firms, and high-net-worth individuals seeking leverage for investment opportunities. The agreement must carefully balance the lender's security requirements with the borrower's investment flexibility while maintaining regulatory compliance. Key features include detailed investment parameters, risk management provisions, security arrangements, and monitoring mechanisms.
Suggested Sections

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan, including purpose of investment and relationship between parties

3. Definitions: Defined terms used throughout the agreement, including financial, investment, and technical terms

4. Loan Amount and Purpose: Specification of loan amount, currency, and permitted investment purposes

5. Interest and Fees: Interest rate, calculation method, payment frequency, and associated fees

6. Drawdown: Conditions precedent, drawdown procedures, and requirements for utilization

7. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

8. Security: Description of collateral, security interests, and ranking of security

9. Representations and Warranties: Standard and investment-specific representations by borrower

10. Covenants: Positive and negative obligations of the borrower, including investment-related restrictions

11. Events of Default: Circumstances constituting default and consequences

12. Regulatory Compliance: Compliance with Hong Kong regulations, including AML requirements

13. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction for disputes

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Guarantees: Required when a third party guarantees the loan obligations

2. Investment Restrictions: Included when specific investment parameters or restrictions apply

3. Security Trustee Provisions: Required for syndicated loans or multiple lender arrangements

4. Currency Provisions: Needed when investments or repayments involve multiple currencies

5. Tax Provisions: Detailed tax provisions when complex tax implications exist

6. Information Rights: Extended reporting requirements for complex investment scenarios

7. Market Disruption: Provisions dealing with market disruption events affecting investments

8. Hedging Requirements: When hedging of investment or currency exposure is mandatory

Suggested Schedules

1. Schedule 1 - Drawdown Notice Form: Template for borrower to request loan disbursement

2. Schedule 2 - Repayment Schedule: Detailed amortization or repayment schedule

3. Schedule 3 - Permitted Investments: List of approved investment types and criteria

4. Schedule 4 - Security Documents: List and copies of all security documentation

5. Schedule 5 - Conditions Precedent: Detailed list of required documents and conditions

6. Schedule 6 - Fee Schedule: Breakdown of all applicable fees and charges

7. Appendix A - Investment Guidelines: Detailed investment parameters and restrictions

8. Appendix B - Compliance Requirements: Regulatory compliance checklist and 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

Investment Management

Private Equity

Venture Capital

Asset Management

Corporate Finance

Real Estate Investment

Securities and Trading

Wealth Management

Professional Services

Relevant Teams

Legal

Compliance

Credit Risk

Corporate Banking

Investment Banking

Treasury

Portfolio Management

Wealth Management

Financial Control

Risk Management

Corporate Finance

Due Diligence

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Investment Advisor

Portfolio Manager

Treasury Manager

Risk Officer

Corporate Banking Manager

Investment Banking Director

Wealth Management Advisor

Financial Controller

Due Diligence Officer

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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