The Loan Commitment Agreement is a crucial document in Hong Kong's financial landscape, used when a lender agrees to make available a loan facility to a borrower under specified terms and conditions. This agreement is particularly important in Hong Kong's position as a major financial hub, where it must comply with the jurisdiction's sophisticated banking and financial services regulations. The document typically precedes the actual loan agreement and provides certainty to borrowers regarding the availability of funds while protecting lenders through carefully structured conditions precedent and covenants. It is commonly used in corporate financing, property development, business expansion, and other commercial contexts where formal commitment to provide financing is required before the actual drawdown. The agreement must adhere to Hong Kong regulatory requirements, including those under the Banking Ordinance and Money Lenders Ordinance, particularly regarding interest rate calculations, disclosure requirements, and security arrangements.

1. Parties: Identification of the lender(s) and borrower(s) with their full legal names and addresses

2. Background: Context of the loan commitment, relationship between parties, and purpose of the facility

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. The Facility: Details of the loan commitment including amount, purpose, and availability period

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

6. Drawdown Mechanics: Procedures and requirements for requesting and making drawdowns

7. Interest and Fees: Interest rate provisions, calculation methods, and applicable fees

8. Repayment and Prepayment: Terms for repayment, prepayment options, and related conditions

9. Representations and Warranties: Standard representations and warranties given by the borrower

10. Covenants: Positive and negative covenants applicable to the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Provisions regarding assignment and transfer rights

13. Payments and Calculations: Payment mechanics, business day conventions, and calculation principles

14. Notices: Communication procedures and contact details

15. General Provisions: Miscellaneous legal provisions including governing law and jurisdiction