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A Guarantee Deed is a legally binding document where one party promises to pay another party's debts or fulfill their obligations if they fail to do so. In Hong Kong's business landscape, these deeds commonly secure commercial loans, rental agreements, and business contracts.

The deed must follow Hong Kong's Conveyancing and Property Ordinance requirements to be enforceable. It creates stronger protection than a simple guarantee because it doesn't need separate consideration and remains valid even if the main contract changes. Banks and landlords often require guarantee deeds from company directors or parent companies to back business commitments.

Consider using a Guarantee Deed when securing significant business transactions in Hong Kong, especially for property leases, bank loans, or major supply contracts. This document becomes essential when dealing with new companies, startups, or businesses with limited financial history where additional security is needed.

Banks typically require Guarantee Deeds from company directors for corporate loans, while commercial landlords often need them from parent companies or major shareholders. They're particularly valuable when expanding business operations, entering joint ventures, or when a subsidiary needs financial backing from its parent company to secure important contracts.

• All-Monies Guarantees: Cover all present and future debts between parties, commonly used by banks for business lending
• Specific Transaction Guarantees: Limited to particular contracts or loans with clear monetary limits
• Parent Company Guarantees: Used when parent entities back their subsidiaries' obligations
• Personal Director Guarantees: Required from company directors to secure corporate facilities
• Performance Guarantees: Focus on non-financial obligations like construction completion or service delivery

• Banks and Financial Institutions: Require Guarantee Deeds as security for loans and credit facilities
• Commercial Landlords: Request these deeds from tenants to secure rental obligations
• Company Directors: Provide personal guarantees to support their company's commitments
• Parent Companies: Issue guarantees for their subsidiaries' contractual obligations
• Legal Professionals: Draft and review the deeds to ensure enforceability under Hong Kong law
• Corporate Secretaries: Maintain records and handle execution formalities

• Party Details: Gather full legal names, addresses, and registration numbers of guarantor and beneficiary
• Scope Definition: Clearly outline which obligations or debts are being guaranteed
• Financial Limits: Specify maximum liability amounts and any time restrictions
• Authorization Check: Confirm signing authority and board approvals for corporate guarantors
• Supporting Documents: Collect relevant contracts, company records, and financial statements
• Execution Plan: Arrange proper witnessing and determine if notarization is needed
• Document Generation: Use our platform to create a legally compliant deed that includes all required elements

• Deed Title: Clear identification as a Guarantee Deed executed under Hong Kong law
• Party Details: Full legal names and addresses of guarantor, beneficiary, and principal debtor
• Guarantee Scope: Precise description of guaranteed obligations and maximum liability
• Payment Terms: Conditions triggering guarantee and payment mechanisms
• Duration Clause: Term of guarantee and termination conditions
• Enforcement Rights: Beneficiary's rights and remedies upon default
• Execution Block: Proper signing format with witness requirements
• Governing Law: Explicit statement of Hong Kong jurisdiction

A Guarantee Deed differs significantly from a Guarantee Agreement in several key aspects under Hong Kong law. While both documents involve one party promising to fulfill another's obligations, their legal strength and formalities vary considerably.

• Legal Form: A Guarantee Deed offers stronger protection as it doesn't require consideration to be valid and must be executed as a deed with proper witnessing
• Enforcement Power: Deeds provide a longer limitation period of 12 years compared to 6 years for agreements
• Execution Requirements: Guarantee Deeds must be sealed and delivered, with stricter witnessing requirements than simple agreements
• Modification Rules: Deeds remain valid even when the underlying obligation changes, while agreements may become void with substantial modifications
• Business Usage: Banks and large corporations typically prefer Guarantee Deeds for major transactions due to their enhanced security and longer enforcement period