Document background
The Debenture Loan Agreement is a crucial financing document used in Hong Kong when a company seeks to obtain secured financing while providing comprehensive security over its assets. This document type is particularly relevant in corporate lending scenarios where the lender requires robust security arrangements. It combines traditional loan agreement elements with security creation provisions, establishing both fixed and floating charges over the borrower's assets. The agreement must comply with Hong Kong's Companies Ordinance requirements for charge registration and security creation, making it distinct from similar documents in other jurisdictions. It's commonly used in both bilateral and syndicated lending arrangements, and can accommodate various security structures including security trustee arrangements for multiple lenders.
