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Commercial Pledge Agreement
"I need a Commercial Pledge Agreement under Hong Kong law for pledging 10,000 shares in ABC Trading Limited as security for a HKD 5 million loan facility, with the agreement to be effective from March 1, 2025."
1. Parties: Identification of the Pledgor and Pledgee, including their full legal names, registration numbers (if companies), and registered addresses
2. Background: Context of the pledge agreement, including reference to any underlying facility or commercial arrangement being secured
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Creation of Pledge: Express provisions creating the pledge and describing the pledged assets
5. Secured Obligations: Definition and scope of the obligations being secured by the pledge
6. Perfection and Registration: Requirements for perfecting the pledge and any necessary registration requirements
7. Representations and Warranties: Pledgor's representations regarding ownership, authority, and status of pledged assets
8. Covenants: Ongoing obligations of the Pledgor regarding the pledged assets
9. Rights and Obligations: Specific rights and obligations of both parties during the pledge period
10. Enforcement: Circumstances and procedures for enforcement of the pledge
11. Power of Attorney: Appointment of Pledgee as attorney for specific enforcement purposes
12. General Provisions: Standard contractual provisions including notices, amendments, governing law, etc.
1. Income and Distributions: Provisions dealing with dividends, interest, or other income from pledged assets - include when pledged assets generate income
2. Custody Arrangements: Provisions regarding custody of pledged assets - include when assets are held by a third-party custodian
3. Further Advances: Provisions for securing future advances - include when contemplating additional secured obligations
4. Insurance: Requirements for insurance of pledged assets - include when assets are physical property
5. Tax Provisions: Allocation of tax obligations - include when pledge may have tax implications
6. Multiple Pledgors: Joint and several liability provisions - include when there is more than one pledgor
7. Currency Provisions: Currency conversion and payment provisions - include for cross-border transactions
1. Schedule 1 - Description of Pledged Assets: Detailed description and/or list of all assets subject to the pledge
2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations, including reference to facility agreements if applicable
3. Schedule 3 - Form of Notice of Pledge: Template notice to be sent to relevant third parties regarding the pledge
4. Schedule 4 - Perfection Requirements: Specific actions required to perfect the pledge in relevant jurisdictions
5. Schedule 5 - Forms of Transfer Documents: Template documents for transferring pledged assets upon enforcement
6. Appendix A - Required Authorizations: List of required corporate and regulatory authorizations
7. Appendix B - Registration Requirements: Detailed registration requirements and procedures
Authors
Banking
Financial Services
Asset Management
Securities Trading
Manufacturing
Trading
Import/Export
Logistics
Real Estate
Technology
Retail
Wholesale
Commodities
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretarial
Credit
Commercial
Security & Collateral Management
Portfolio Management
Legal Counsel
Corporate Lawyer
Finance Manager
Treasury Manager
Credit Risk Manager
Security Trustee
Relationship Manager
Compliance Officer
Company Secretary
Chief Financial Officer
Commercial Director
Risk Manager
Transaction Manager
Portfolio Manager
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