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A Third Party Pledge Agreement is a crucial security document used in Hong Kong when a party (the pledgor) wishes to provide security over their assets to secure the obligations of another party (the primary debtor) to a beneficiary (the pledgee). This arrangement is common in corporate group structures, family businesses, or where related parties provide cross-support for financing arrangements. The document must comply with Hong Kong security and property laws, including the Conveyancing and Property Ordinance and Companies Ordinance. It typically covers asset description, perfection requirements, enforcement mechanisms, and includes necessary representations and warranties. The agreement is particularly important in financial transactions where third-party collateral support is required, and must be carefully structured to ensure enforceability under Hong Kong law.

1. Parties: Identifies the pledgor (third party providing the security), the pledgee (beneficiary of the pledge), and the primary debtor whose obligations are being secured

2. Background: Sets out the context of the underlying transaction and explains why the third party is providing the pledge

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation principles

4. Creation of Pledge: Legal provisions establishing the pledge and security interest over the pledged assets

5. Secured Obligations: Defines the obligations being secured by the pledge, including reference to the underlying agreement

6. Representations and Warranties: Standard representations about ownership, authority to pledge, and status of pledged assets

7. Covenants: Ongoing obligations of the pledgor regarding maintenance and preservation of the pledged assets

8. Perfection Requirements: Actions required to perfect the security interest and maintain its validity

9. Enforcement: Rights and remedies of the pledgee upon occurrence of an enforcement event

10. Power of Attorney: Appointment of pledgee as attorney for enforcement purposes

11. Payments and Application: Rules for applying proceeds from the pledged assets

12. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.