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A Credit Agreement sets out the binding terms when a lender provides money or financial support to a borrower in Hong Kong. It spells out key details like the loan amount, interest rates, repayment schedule, and any security the borrower must provide - following requirements under Hong Kong's Money Lenders Ordinance.

Beyond just laying out payment terms, these agreements protect both sides by clearly stating what happens if payments are missed, when the loan can be called in early, and which Hong Kong laws apply. Banks and licensed money lenders use these contracts daily, with terms varying based on factors like credit risk and loan purpose.

Credit Agreements become essential any time you're lending or borrowing significant funds in Hong Kong - from basic business loans to complex corporate financing. They're particularly important when dealing with multiple lenders, providing collateral, or setting up revolving credit facilities under Hong Kong's banking regulations.

Use these agreements when you need clear documentation of repayment terms, interest calculations, and default procedures. They're vital for real estate purchases, business expansions, or when restructuring existing debt. Financial institutions and licensed money lenders must have proper Credit Agreements in place before disbursing funds to comply with local lending laws.

• Credit Support Agreement: Used for securing third-party guarantees or collateral backing a primary loan
• Credit Sales Agreement: Governs business-to-business transactions with deferred payment terms
• Revolving Credit Promissory Note: Documents flexible credit lines where borrowers can repeatedly draw and repay funds up to a set limit

• Banks and Financial Institutions: Primary lenders who draft and issue Credit Agreements under Hong Kong Monetary Authority supervision
• Corporate Borrowers: Companies seeking financing for business expansion, working capital, or asset purchases
• Legal Counsel: Internal or external lawyers who review and negotiate terms to protect their clients' interests
• Licensed Money Lenders: Non-bank lenders authorized under the Money Lenders Ordinance to provide loans
• Guarantors: Third parties who provide additional security by guaranteeing the borrower's obligations

• Borrower Details: Gather complete corporate information, registration numbers, and financial statements
• Loan Terms: Define amount, interest rate, repayment schedule, and any security or collateral arrangements
• Due Diligence: Verify borrower's creditworthiness and legal capacity to enter the agreement
• Regulatory Compliance: Check Money Lenders Ordinance requirements and HKMA guidelines
• Document Generation: Use our platform to create a legally-sound Credit Agreement that includes all mandatory elements
• Final Review: Double-check all terms, conditions, and signing authority before execution

• Party Identification: Full legal names, addresses, and registration details of lender and borrower
• Loan Details: Principal amount, interest rate, payment terms, and maturity date
• Security Provisions: Collateral descriptions, guarantees, and enforcement rights
• Default Terms: Clear definitions of default events and consequences
• Representations: Borrower's warranties about financial condition and legal status
• Governing Law: Explicit statement that Hong Kong law applies, plus jurisdiction details
• Execution Block: Authorized signature spaces with witness requirements per Hong Kong rules

A Credit Agreement differs significantly from an Intercreditor Agreement in both purpose and scope. While both deal with lending arrangements, they serve distinct functions in Hong Kong's financial landscape.

• Primary Purpose: Credit Agreements establish the core lending relationship between borrower and lender, while Intercreditor Agreements manage relationships between multiple lenders to the same borrower
• Parties Involved: Credit Agreements typically involve one lender and one borrower, whereas Intercreditor Agreements coordinate multiple lenders' rights and priorities
• Legal Focus: Credit Agreements detail loan terms, repayment schedules, and security arrangements, while Intercreditor Agreements establish lender rankings and collection rights
• Timing: Credit Agreements come first in the lending process, with Intercreditor Agreements following only when multiple lenders become involved