The Promissory Note Guaranty is commonly used in Hong Kong's commercial and financial transactions where additional security is required for a promissory note obligation. This document is particularly valuable when the creditworthiness of the promissory note maker needs to be enhanced by a third-party guarantee, often seen in trade finance, business loans, and commercial transactions. The guaranty must comply with Hong Kong legal requirements for both guarantees and negotiable instruments, including written form requirements under the Law Amendment and Reform (Consolidation) Ordinance and the Bills of Exchange Ordinance. It typically includes detailed provisions on the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations, while ensuring the guarantee remains effective despite modifications to the underlying promissory note.

1. Parties: Identifies the Guarantor, the Holder of the promissory note (Beneficiary), and references the Maker of the promissory note

2. Background: Describes the underlying promissory note, its key terms, and the context for the guarantee

3. Definitions: Defines key terms including 'Promissory Note', 'Guaranteed Obligations', 'Event of Default', and other relevant terms

4. Guarantee: Core section establishing the guarantee, its scope, and the guaranteed obligations

5. Guarantor's Representations and Warranties: Key statements about the guarantor's capacity, authority, and financial condition

6. Nature of Guarantee: Specifies that the guarantee is continuing, unconditional, and irrevocable

7. Payment Obligations: Details the circumstances triggering payment obligations and payment mechanics

8. Preservation of Rights: Ensures the guarantee remains valid despite changes to the underlying promissory note or forbearance

9. Enforcement: Sets out the holder's rights to enforce the guarantee and the process for doing so

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