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Warehouse Loan Agreement for Hong Kong

Warehouse Loan Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions for a loan facility secured by goods stored in a warehouse. The agreement details the lending arrangements, security interests, warehouse operations, monitoring requirements, and enforcement mechanisms. It incorporates Hong Kong's specific requirements for security creation, registration, and enforcement, while addressing the rights and obligations of the lender, borrower, and warehouse operator. The document includes provisions for collateral management, insurance requirements, and periodic monitoring of the warehoused goods.

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Warehouse Loan Agreement

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What is a Warehouse Loan Agreement?

The Warehouse Loan Agreement is a specialized financing document used when a lender provides funding against goods stored in a warehouse. This agreement, governed by Hong Kong law, is particularly relevant for trade finance, manufacturing, and commodity trading sectors where companies require working capital against their inventory. The document establishes the security structure, operational framework, and risk management mechanisms for warehouse-based lending. It incorporates specific requirements under Hong Kong's security and banking regulations, including provisions for creating and perfecting security interests, monitoring arrangements, and enforcement rights. The agreement is crucial for businesses seeking to optimize their working capital by leveraging their inventory while providing lenders with secure collateral arrangements.

What sections should be included in a Warehouse Loan Agreement?

1. Parties: Identifies all parties to the agreement including lender, borrower, and warehouse operator

2. Background: Sets out the context of the agreement and brief description of the transaction

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules

4. The Facility: Details of the loan facility including amount, purpose, and drawdown conditions

5. Storage and Warehousing Arrangements: Terms governing the storage of goods, including location, access rights, and handling procedures

6. Security Interest: Creation and perfection of security interest over the warehoused goods

7. Representations and Warranties: Standard and transaction-specific representations and warranties from all parties

8. Covenants: Positive and negative obligations of the parties during the facility period

9. Monitoring and Inspection Rights: Lender's rights to monitor and inspect the warehoused goods

10. Insurance: Requirements for insurance coverage of the warehoused goods

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Lender's rights and remedies upon default

13. Fees and Expenses: All applicable fees, costs, and expenses

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

What sections are optional to include in a Warehouse Loan Agreement?

1. Tripartite Arrangements: Required when there's a separate collateral manager or monitoring agency

2. Multiple Warehouse Locations: Required when goods are stored across different warehouse locations

3. Guarantee Provisions: Include when there are third-party guarantors

4. Sub-participation: Include if lender requires right to sub-participate the loan

5. Import/Export Provisions: Required for international trade financing situations

6. VAT and Tax Provisions: Detailed tax provisions if significant tax implications exist

7. Electronic Documentation: Include when parties agree to use electronic documentation system

What schedules should be included in a Warehouse Loan Agreement?

1. Facility Terms: Detailed commercial terms of the facility including pricing, tenure, and repayment schedule

2. Warehouse Details: Specific details of warehouse location(s), layout, and storage specifications

3. Condition Precedent Documents: List of all required documents before facility effectiveness

4. Security Documents: Forms of security documents and perfection requirements

5. Approved Goods: List and specifications of goods approved for warehouse storage

6. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

7. Operating Procedures: Detailed procedures for goods movement, monitoring, and reporting

8. Form of Drawdown Request: Standard form for requesting loan disbursements

9. Form of Monitoring Reports: Templates for periodic monitoring and inspection reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions





























































Clauses



































Relevant Industries

Banking and Financial Services

Logistics and Warehousing

International Trade

Commodity Trading

Manufacturing

Agriculture

Retail

Mining

Energy

Food and Beverage

Relevant Teams

Legal

Credit Risk

Trade Finance

Operations

Treasury

Compliance

Finance

Commercial

Credit Administration

Warehouse Operations

Collateral Management

Relevant Roles

Trade Finance Manager

Credit Risk Officer

Legal Counsel

Relationship Manager

Warehouse Manager

Operations Director

Chief Financial Officer

Treasury Manager

Compliance Officer

Security Trustee

Collateral Manager

Risk Manager

Finance Director

Commercial Director

Credit Administrator

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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