Joint Guarantee Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Joint Guarantee Agreement

"I need a Joint Guarantee Agreement under Hong Kong law for three individual guarantors to jointly guarantee a HKD 5 million business loan to a technology startup company, with the guarantee period starting from March 1, 2025."

Document background
The Joint Guarantee Agreement is essential in commercial and financial transactions where additional security is required for obligations. It is commonly used in Hong Kong for various purposes, including securing bank facilities, commercial loans, and business obligations. The document establishes the scope of guaranteed obligations, defines the nature of the guarantors' liability, and includes provisions for enforcement under Hong Kong law. This agreement type is particularly relevant given Hong Kong's status as a major financial center, where complex financing arrangements often require robust security structures. The document typically includes detailed provisions on the guarantors' obligations, enforcement mechanisms, and creditor's rights, while ensuring compliance with Hong Kong's legal framework and commercial practices.
Suggested Sections

1. Parties: Identification of the guarantors, creditor, and principal debtor

2. Background: Context of the guarantee, reference to the principal agreement or facility being guaranteed

3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation

4. Guarantee and Indemnity: Core guarantee obligations and indemnity provisions

5. Joint and Several Liability: Provisions establishing joint and several liability among guarantors

6. Scope of Guarantee: Extent of guaranteed obligations and any limitations

7. Continuing Security: Confirmation that the guarantee is continuing and covers all obligations

8. Representations and Warranties: Guarantors' confirmations regarding capacity, authority, and understanding

9. Preservation of Rights: Creditor's rights preservation and independence from other security

10. Payments: Payment obligations, mechanics, and currency provisions

11. Discharge and Release: Conditions for discharge of guarantee obligations

12. Expenses and Indemnity: Cost allocation and indemnification obligations

13. Notices: Communication procedures and contact details

14. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction provisions

Optional Sections

1. Security Provisions: Required when guarantors provide additional security for their obligations

2. Subordination: Needed when there are multiple creditors or inter-creditor arrangements

3. Interest Provisions: Detailed interest terms when specific interest arrangements apply

4. Set-off Rights: Specific set-off provisions when parties have multiple relationships

5. Assignment and Transfer: Required when transfer rights need to be specifically addressed

6. Information Covenants: When ongoing information requirements are imposed on guarantors

7. Tax Gross-up: Required when tax implications need specific addressing

8. Currency Indemnity: Needed for cross-border transactions with currency exposure

Suggested Schedules

1. Schedule 1 - Guaranteed Obligations: Detailed description of the obligations being guaranteed

2. Schedule 2 - Guarantor Information: Detailed information about each guarantor including addresses and notice details

3. Schedule 3 - Principal Agreement: Copy or key terms of the underlying agreement being guaranteed

4. Schedule 4 - Guarantee Limit: If applicable, specific limits on guarantee amounts for each guarantor

5. Schedule 5 - Security Details: If applicable, details of any security provided by guarantors

6. Appendix A - Form of Demand: Standard form for making demands under the guarantee

7. Appendix B - Compliance Certificates: Standard forms for any required compliance certificates

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
Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Retail

Import/Export

Shipping

Professional Services

Technology

Telecommunications

Healthcare

Education

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Commercial

Corporate Finance

Company Secretarial

Banking Operations

Risk Management

Relevant Roles

Legal Counsel

Chief Financial Officer

Finance Director

Credit Manager

Risk Manager

Compliance Officer

Commercial Director

Treasury Manager

Banking Relationship Manager

Corporate Finance Manager

Company Secretary

Senior Legal Manager

Transaction Manager

Security Trustee

Facility Agent

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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