The Pawn Agreement and Disclosure is essential for any pawnbroking transaction in Hong Kong, where such activities are strictly regulated under the Pawnbrokers Ordinance and related legislation. This document is used when individuals seek to obtain loans secured against personal property, typically valuable items such as jewelry, watches, or other precious goods. The agreement must comply with Hong Kong's statutory requirements, including specific interest rate caps, mandatory cooling-off periods, and prescribed disclosures. It serves as both a loan agreement and a security document, detailing the terms of the pledge, the rights and obligations of both parties, and the procedures for redemption or default. The document must include specific statutory warnings and information required by Hong Kong law, making it a crucial compliance tool for licensed pawnbrokers.

1. Parties: Identification of the pawnbroker and the pledgor, including their full legal names, addresses, and identification details

2. Background: Brief context of the transaction and the purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Pledged Item', 'Loan Amount', 'Redemption Period', and other relevant terms

4. Loan Details: Specifics of the loan including amount, interest rate (within statutory limits), and term

5. Description of Pledged Item: Detailed description of the item(s) being pawned, including identifying marks, serial numbers, and condition

6. Valuation and Assessment: Agreed value of the pledged item and basis of valuation

7. Interest and Charges: Breakdown of interest rates, calculation method, and any permitted additional charges

8. Redemption Terms: Conditions and process for redeeming the pledged item, including redemption period

9. Default and Sale: Consequences of default and procedures for sale of unredeemed items

10. Statutory Disclosures: Mandatory disclosures required under the Pawnbrokers Ordinance

11. Risk and Insurance: Responsibility for insurance and risk allocation during the pledge period

12. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction