Mortgage Loan Note Template for Hong Kong

The Mortgage Loan Note is a fundamental document in Hong Kong's property financing landscape, used when providing loans secured against real estate. This document serves multiple purposes: it evidences the debt, documents the security arrangement, and sets out the parties' rights and obligations. Typically used by banks and financial institutions in Hong Kong SAR when extending mortgage loans, it must comply with local regulations including the Banking Ordinance and HKMA guidelines. The document includes essential information such as loan amount, interest rates, repayment terms, security provisions, and enforcement mechanisms. A properly structured Mortgage Loan Note is crucial for both the lender's security interests and the borrower's understanding of their obligations under Hong Kong law.

1. Parties: Identification of the lender, borrower, and any guarantors

2. Background: Context of the loan, including property details and purpose of the facility

3. Definitions: Key terms used throughout the document, including financial and property-related definitions

4. Facility Amount and Purpose: Specification of the loan amount and permitted use of funds

5. Interest and Fees: Interest rate provisions, calculation method, and applicable fees

6. Repayment Terms: Payment schedule, installment amounts, and prepayment provisions

7. Security Provisions: Details of the mortgage security and additional collateral if any

8. Representations and Warranties: Borrower's confirmations regarding their status, property ownership, and ability to enter into the agreement

9. Covenants: Ongoing obligations of the borrower regarding property maintenance, insurance, and loan compliance

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights and remedies upon default, including power of sale

12. Governing Law and Jurisdiction: Confirmation of Hong Kong law governance and jurisdiction