Document background
The Loan and Guarantee Agreement is a fundamental document in secured lending transactions under Hong Kong law, typically used when a third party is providing additional security for a borrower's obligations. This document is essential in both commercial and private lending scenarios where additional security beyond the borrower's own covenant is required. It combines the primary loan agreement provisions (including amount, interest, repayment terms) with guarantee provisions that establish the guarantor's obligations and liability. The agreement must comply with Hong Kong's regulatory framework, including the Money Lenders Ordinance, Companies Ordinance, and common law principles regarding guarantees. It's particularly relevant in corporate financing, real estate transactions, and business expansion scenarios where parent companies or related entities provide guarantees for subsidiary or affiliate borrowings.
