Personal Property Security Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Personal Property Security Agreement

"I need a Personal Property Security Agreement under Hong Kong law for a manufacturing company granting security over its equipment and inventory to a syndicate of banks, with the facility amount being HKD 50 million and closing date of March 15, 2025."

Document background
The Personal Property Security Agreement is a crucial document in Hong Kong's secured lending landscape, used when a party (typically a lender) requires security over personal property as collateral for a loan or other obligations. This agreement is essential in commercial transactions where parties seek to create legally enforceable security interests in movable assets, equipment, inventory, receivables, or other personal property. It must comply with Hong Kong's legal framework, including the Companies Ordinance, Bills of Sale Ordinance, and relevant common law principles. The document includes detailed provisions for the creation, perfection, and enforcement of security interests, ensuring protection for the secured party while establishing clear obligations for the grantor. This type of agreement is particularly important in Hong Kong's dynamic financial sector, where secured lending plays a vital role in business financing.
Suggested Sections

1. Parties: Identifies and defines the Secured Party and the Grantor

2. Background: Explains the context of the security arrangement and references any related agreements

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules

4. Grant of Security Interest: Creates and defines the security interest being granted over the collateral

5. Description of Collateral: Detailed description of the personal property subject to the security interest

6. Representations and Warranties: Grantor's confirmations regarding ownership, authority, and status of collateral

7. Grantor's Obligations: Ongoing obligations to maintain collateral and protect the security interest

8. Secured Party's Rights: Rights of the secured party including inspection and enforcement rights

9. Events of Default: Circumstances that constitute default under the agreement

10. Enforcement: Rights and remedies of the Secured Party upon default

11. Protection of Third Parties: Provisions regarding the rights of third parties dealing with the Secured Party

12. Power of Attorney: Appointment of Secured Party as attorney for specific purposes

13. Notices: Requirements for giving notices under the agreement

14. General Provisions: Standard boilerplate clauses including governing law, amendments, and severability

15. Execution: Formal execution blocks for all parties

Optional Sections

1. Insurance Requirements: Required when the collateral needs specific insurance coverage

2. Registration and Filing: Include when registration with specific authorities is required

3. Intercreditor Provisions: Required when there are multiple secured parties or ranking of security interests

4. Tax Provisions: Include when there are specific tax implications requiring address

5. Currency Provisions: Required when dealing with cross-border transactions or multiple currencies

6. Intellectual Property: Include when the collateral includes intellectual property rights

7. Further Assurance: Optional provisions for additional documentation or actions

8. Confidentiality: Include when specific confidentiality obligations are required

Suggested Schedules

1. Schedule 1 - Description of Collateral: Detailed inventory and description of all personal property subject to the security interest

2. Schedule 2 - Permitted Encumbrances: List of existing encumbrances or permitted future encumbrances on the collateral

3. Schedule 3 - Location of Collateral: Details of where the collateral is kept or maintained

4. Schedule 4 - Form of Notice: Prescribed form for notices under the agreement

5. Schedule 5 - Related Agreements: List and details of any related agreements referenced

6. Appendix A - Registration Requirements: Details of all required registrations and filings

7. Appendix B - Insurance Requirements: Specific insurance requirements for the collateral

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Commercial Lending

Asset Finance

Equipment Leasing

Manufacturing

Retail

Technology

Transportation and Logistics

Agriculture

Construction

Healthcare

Energy and Resources

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit

Corporate Secretariat

Treasury

Commercial Banking

Collections

Security Administration

Relevant Roles

Legal Counsel

Finance Director

Credit Manager

Risk Manager

Compliance Officer

Corporate Secretary

Security Trustee

Loan Officer

Commercial Banking Manager

Chief Financial Officer

Treasury Manager

Asset Manager

Collections Manager

Credit Analyst

Legal Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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