Line Of Credit Agreement Template for Hong Kong

1. Parties: Identifies and defines the Lender and the Borrower with their full legal names and addresses

2. Background: Explains the context of the agreement and the parties' intention to enter into a line of credit arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. The Facility: Details the nature and amount of the credit facility, including the credit limit and purpose

5. Conditions Precedent: Lists conditions that must be satisfied before the facility becomes available

6. Drawing and Operation of the Facility: Specifies how and when the Borrower can draw down on the facility

7. Interest and Fees: Sets out interest rates, calculation methods, and applicable fees

8. Repayment: Details repayment terms, minimum payments, and payment procedures

9. Representations and Warranties: States the Borrower's representations and warranties regarding their legal and financial status

10. Covenants: Lists positive and negative covenants the Borrower must observe

11. Events of Default: Defines circumstances constituting default and consequences thereof

12. Termination: Specifies conditions and procedures for terminating the facility

13. General Provisions: Contains standard clauses including notices, amendments, governing law, and jurisdiction

1. Schedule 1 - Conditions Precedent Documents: Lists all documents required before first drawdown

2. Schedule 2 - Form of Drawdown Notice: Template for Borrower to request drawings under the facility

3. Schedule 3 - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

4. Schedule 4 - Repayment Schedule: If applicable, schedule of repayment dates and amounts

5. Schedule 5 - Security Documents: List and copies of security documents if facility is secured

6. Appendix A - Facility Terms Summary: Summary of key commercial terms including facility limit, interest rates, and fees

7. Appendix B - Compliance Certificate: Template for periodic compliance certification by Borrower