Promissory Note Secured By Deed Of Trust for Hong Kong

Promissory Note Secured By Deed Of Trust Template for Hong Kong

A Promissory Note Secured by Deed of Trust is a hybrid financial instrument used in Hong Kong that combines a promise to pay with security over property held in trust. The document follows Hong Kong law, particularly the Bills of Exchange Ordinance and Conveyancing and Property Ordinance, creating a legally binding obligation to pay a specified sum while providing security through a trust arrangement. It includes detailed terms regarding the payment obligation, security arrangements, trustee duties, default provisions, and enforcement mechanisms, all structured within Hong Kong's legal framework for secured transactions.

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What is a Promissory Note Secured By Deed Of Trust?

The Promissory Note Secured By Deed Of Trust is commonly used in Hong Kong for secured lending transactions where parties seek to combine the simplicity of a promissory note with the security of a trust arrangement. This document is particularly useful in situations requiring a straightforward documentation of debt while securing it with property held in trust. It complies with Hong Kong's legal requirements, including the Bills of Exchange Ordinance and property laws, making it suitable for both commercial and private lending arrangements. The document incorporates both the unconditional promise to pay a specified sum and the security arrangement through a trust deed, providing lenders with additional protection compared to an unsecured promissory note.

What sections should be included in a Promissory Note Secured By Deed Of Trust?

1. Parties: Identifies the maker (borrower), payee (lender), and trustee

2. Background: States the context of the loan and security arrangement

3. Definitions: Defines key terms used throughout the document

4. Promise to Pay: States the principal amount, interest rate, and unconditional promise to pay

5. Payment Terms: Details the payment schedule, method, and place of payment

6. Security Interest: Describes the property being held in trust as security

7. Trustee Powers and Duties: Outlines the trustee's responsibilities and authority

8. Events of Default: Lists circumstances constituting default

9. Remedies: Details rights and remedies upon default

10. Representations and Warranties: Standard declarations about legal capacity and authority

11. Governing Law: Specifies Hong Kong law as governing law

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Promissory Note Secured By Deed Of Trust?

1. Prepayment Provisions: Include when early payment is allowed, specifying any penalties or conditions

2. Security Registration: Include when the security requires registration under Hong Kong law

3. Insurance Requirements: Include when insurance of the secured property is required

4. Transfer and Assignment: Include when transfer rights need to be specifically addressed

5. Tax Provisions: Include when specific tax implications need to be addressed

6. Subordination: Include when there are multiple security interests or lenders

7. Guarantees: Include when there are third-party guarantors

What schedules should be included in a Promissory Note Secured By Deed Of Trust?

1. Property Description Schedule: Detailed description of the property held in trust

2. Payment Schedule: Detailed amortization schedule if installment payments

3. Form of Notice: Standard forms for various notices under the agreement

4. Insurance Requirements: Detailed insurance requirements for the secured property

5. Required Filings: List of required registrations and filings

6. Existing Encumbrances: List of any existing liens or encumbrances on the property

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking & Financial Services

Real Estate

Commercial Lending

Private Equity

Investment Management

Corporate Finance

Property Development

Small & Medium Enterprises

Professional Services

Asset Management

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Compliance

Real Estate

Corporate Banking

Securities & Collateral

Trust Administration

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Trust Officer

Loan Officer

Credit Manager

Risk Manager

Commercial Banking Officer

Property Manager

Security Trustee

Compliance Officer

Treasury Manager

Financial Controller

Real Estate Manager

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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