Feb 32 min read

Instrument Creating or Evidencing Charge or Mortgage

Instruments for Mortgages and Charges in Hong Kong

In Hong Kong, the instrument creating or evidencing a mortgage or charge depends on the specific context:

For individuals:

Mortgage: Typically, a Mortgage Deed is used, drafted by a lawyer and registered with the Land Registry. This deed outlines the terms of the loan, property details, and security granted.
Charge: Depending on the nature of the charge (e.g., over personal property, shares), different instruments might be used, such as Charge Agreements, Debenture Agreements, or Security Agreements.

For companies:

Companies Ordinance (Cap. 622) regulates registration of charges created by companies.
The instrument creating or evidencing the charge (certified copy) needs to be submitted with the Statement of Particulars of Charge (Form NM1) to the Companies Registry.
The specific instrument depends on the type of charge, but common ones include Debentures, Debenture Trust Deeds, Loan Agreements with security clauses, or Charge Agreements.

Always consult a professional to ensure the appropriate instrument is used and complies with legal requirements.
Registration for company charges and land mortgages is crucial for legal validity and public notice.
The Companies Registry website provides detailed information on charge registration and forms.

Here's a breakdown of how Bestar, as a company secretarial services provider, could assist with registration of company charges in Hong Kong:

1. Preparation of Documents:

Review and Verify Information: Bestar can review the instrument creating or evidencing the charge to ensure it accurately reflects the agreed-upon terms and complies with legal requirements.
Prepare Statement of Particulars (Form NM1): They can accurately complete the necessary form, providing details about the charge, company, and secured property/assets.
Certify Copies: They can create certified copies of the instrument, as required for submission to the Companies Registry.

2. Filing with the Companies Registry:

Submission of Documents: Bestar can handle the physical or electronic submission of the Form NM1 and certified copy of the instrument to the Companies Registry within the prescribed timeframe.
Fee Payment: They can manage the payment of the registration fee on your behalf.
Liaise with Registry: If any queries or clarifications arise during the process, they can act as a liaison between you and the Companies Registry.

3. Post-Registration:

Certificate of Registration: Upon successful registration, Bestar can obtain the Certificate of Registration from the Companies Registry and provide it to you.
Maintenance of Records: They can maintain a register of charges for your company, ensuring compliance with record-keeping obligations.
Subsequent Actions: If needed, they can assist with subsequent actions like modifications, discharges, or renewals of charges.

Contact Bestar today!