The Loan Commission Agreement is essential for businesses operating in Hong Kong's financial services sector where intermediaries facilitate loan arrangements. This document is typically used when establishing formal relationships between lenders and commission agents who source loan opportunities or borrowers. The agreement must comply with Hong Kong's regulatory framework, including the Money Lenders Ordinance (Cap. 163) and Securities and Futures Ordinance (Cap. 571). It details commission structures, calculation methodologies, payment triggers, compliance requirements, and reporting obligations. The agreement is particularly important in Hong Kong's dynamic financial market where loan commission arrangements are common in both corporate and retail lending sectors. It provides legal certainty and clear operational guidelines while ensuring regulatory compliance in Hong Kong's financial services ecosystem.

1. Parties: Identifies and defines all parties to the agreement, including the commission agent, the lender, and any other relevant parties

2. Background: Sets out the context of the agreement, including the purpose of the arrangement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Details the appointment of the commission agent and the scope of their services

5. Commission Structure: Specifies the commission rates, calculation methods, and conditions for commission payment

6. Payment Terms: Outlines when and how commission payments will be made, including payment mechanics and currency

7. Obligations of the Agent: Details the duties and responsibilities of the commission agent

8. Obligations of the Principal: Sets out the duties and responsibilities of the principal/lender

9. Compliance Requirements: Specifies regulatory compliance obligations and required licenses/permits

10. Representations and Warranties: Contains standard and specific representations and warranties from all parties

11. Term and Termination: Specifies the duration of the agreement and termination provisions

12. Confidentiality: Addresses the handling of confidential information

13. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment