Document background
A Guarantee Promissory Note is utilized in situations where a creditor requires both a direct promise of payment and additional security through a guarantee. This document type is particularly relevant in Hong Kong's commercial environment, where it provides a streamlined way to document both the primary debt obligation and the guarantee in a single instrument. The document must comply with Hong Kong's Bills of Exchange Ordinance for the promissory note aspects and the Law Amendment and Reform (Consolidation) Ordinance for the guarantee provisions. It typically includes details of the payment obligation, interest terms, guarantee provisions, and enforcement mechanisms. This format is especially useful in commercial lending, trade finance, and business transactions where the creditor seeks additional security beyond the primary debtor's promise to pay.
