Document background
The Memorandum of Deposit is a fundamental security document widely used in Hong Kong's commercial and financial sectors. It serves as formal documentation of a security arrangement where physical assets or documents of title are deposited with a security holder to secure underlying obligations. This document type is particularly common in trade finance, share security arrangements, and general commercial lending. The memorandum must comply with Hong Kong legal requirements, including registration obligations under the Companies Ordinance where applicable. It typically includes detailed provisions about the deposited assets, secured obligations, enforcement mechanisms, and the parties' rights and obligations. The document is essential in creating a valid security interest and ensuring the security holder has enforceable rights over the deposited assets in case of default.
