Document background
The Framework Loan Agreement is designed for situations where parties anticipate multiple loan transactions over time and wish to establish a standardized set of terms and conditions upfront. This document type is commonly used in Hong Kong's financial market where lenders provide revolving facilities or multiple term loans to corporate borrowers. The agreement complies with Hong Kong banking regulations and financial services requirements while incorporating common law principles that govern Hong Kong's legal system. It typically includes detailed provisions covering facility limits, drawdown mechanisms, interest calculations, repayment terms, and security arrangements (if applicable). The Framework Loan Agreement is particularly useful for ongoing business relationships where multiple loans may be required over time, as it streamlines the process by eliminating the need to negotiate basic terms for each new loan transaction.
