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Debt Resolution Agreement
"I need a Debt Resolution Agreement for my manufacturing company in Hong Kong to restructure HKD 5 million in outstanding debt owed to three different creditors, with a planned repayment schedule starting March 2025 and including quarterly payments over 3 years."
1. Parties: Identifies and defines all parties to the agreement, including the creditor(s) and debtor(s)
2. Background: Outlines the existing debt situation and the purpose of entering into this resolution agreement
3. Definitions: Defines key terms used throughout the agreement
4. Acknowledgment of Debt: Formal acknowledgment of the total debt amount and its composition
5. Payment Terms: Details of the agreed payment plan, including amounts, frequency, and payment methods
6. Interest and Fees: Specification of any interest rates and additional fees applicable
7. Default Provisions: Consequences and remedies in case of payment default
8. Representations and Warranties: Statements of fact and promises made by both parties
9. Confidentiality: Provisions regarding the confidentiality of the agreement and its terms
10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes
11. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Security Arrangements: Include when the debt resolution is secured by assets or guarantees
2. Third-Party Guarantees: Include when there are guarantors involved in the agreement
3. Debt Write-Off Provisions: Include when part of the debt is being written off subject to conditions
4. Early Payment Incentives: Include when offering discounts or benefits for early or lump-sum payments
5. Credit Reporting Obligations: Include when there are specific agreements about credit report updates
6. Dispute Resolution: Include when specific mediation or arbitration procedures are preferred over court proceedings
7. Business Continuation Terms: Include when the debtor is a business and ongoing operations need to be addressed
1. Schedule 1 - Debt Breakdown: Detailed breakdown of the total debt amount, including principal, interest, and other charges
2. Schedule 2 - Payment Schedule: Detailed payment plan showing dates, amounts, and running balance
3. Schedule 3 - Security Details: Details of any security or collateral provided
4. Appendix A - Supporting Documents: List of original loan agreements, statements, or other relevant documents
5. Appendix B - Contact Information: Detailed contact information for all parties and authorized representatives
6. Appendix C - Payment Instructions: Specific banking or payment processing details
Authors
Banking & Financial Services
Legal Services
Debt Collection
Real Estate
Retail
Manufacturing
Professional Services
Construction
Healthcare
Hospitality
Technology
Education
Legal
Finance
Credit Control
Collections
Risk Management
Compliance
Treasury
Corporate Advisory
Debt Recovery
Business Recovery
Chief Financial Officer
Financial Controller
Credit Manager
Collections Manager
Legal Counsel
Debt Recovery Specialist
Risk Manager
Compliance Officer
Account Manager
Finance Director
Corporate Lawyer
Insolvency Practitioner
Treasury Manager
Financial Advisor
Business Recovery Specialist
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