The Loan Extension Agreement is utilized when parties to an existing loan arrangement wish to extend the loan's maturity date rather than refinancing or entering into a new loan agreement. This document is particularly relevant in situations where the borrower requires additional time for repayment but is otherwise complying with loan terms, or when market conditions make extension preferable to refinancing. The agreement, governed by Hong Kong law, typically includes confirmation of outstanding amounts, the new maturity date, any modified interest rates or payment terms, and reaffirmation of existing security and guarantees. It ensures compliance with Hong Kong's regulatory framework while providing a streamlined approach to extending credit facilities. This type of agreement is common in both corporate and commercial lending contexts, offering a more efficient alternative to full refinancing while maintaining legal certainty and enforceability.

1. Parties: Identification of the lender and borrower, including their full legal names, addresses, and company registration numbers if applicable

2. Background: Details of the original loan agreement, including date, principal amount, and reason for extension

3. Definitions: Key terms used in the agreement, including 'Original Loan Agreement', 'Extension Period', 'New Maturity Date'

4. Extension of Loan: Core terms of the extension including the new maturity date and confirmation that all other terms of the original agreement remain in force

5. Interest Rate: Specification of whether the interest rate remains the same or is modified for the extension period

6. Repayment Terms: Details of how and when payments should be made during the extension period

7. Conditions Precedent: Conditions that must be satisfied before the extension becomes effective

8. Representations and Warranties: Confirmation that original representations remain true and any new representations

9. Security: Confirmation that existing security remains in place and continues to secure the extended loan

10. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and Hong Kong courts' jurisdiction

11. Execution: Signature blocks and execution formalities