The Sublease Deposit Agreement is a crucial document used in Hong Kong when a tenant subleases property and needs to establish clear terms for handling the security deposit. This agreement becomes necessary when the original tenant takes on the role of a sublandlord and requires protection similar to what they provided to their original landlord. The document ensures compliance with Hong Kong's property laws and financial regulations while protecting the interests of all parties involved. It typically includes detailed provisions about the deposit amount, payment schedule, conditions for use and return, and the relationship with the main lease agreement. This agreement is particularly important in Hong Kong's dynamic property market, where subleasing is common in both commercial and residential contexts.

1. Parties: Identifies all parties to the agreement: the tenant (as sublandlord), the subtenant, and potentially the original landlord if they are a party to this agreement

2. Background: Sets out the context of the agreement, including reference to the main lease and sublease arrangements

3. Definitions: Defines key terms used throughout the agreement, including 'Deposit', 'Main Lease', 'Sublease', 'Premises'

4. Deposit Amount and Payment: Specifies the deposit amount, payment method, and timing

5. Purpose of Deposit: Clearly states what the deposit is intended to cover and secure

6. Holding of Deposit: Details how and where the deposit will be held, including any interest arrangements

7. Use and Application of Deposit: Specifies circumstances under which the deposit may be used or applied

8. Return of Deposit: Sets out conditions and timing for the return of the deposit

9. Obligations of the Parties: Details the specific obligations of each party regarding the deposit

10. Termination: Describes what happens to the deposit in case of early termination of the sublease

11. Governing Law and Jurisdiction: Specifies that Hong Kong law governs the agreement and Hong Kong courts have jurisdiction