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The Late Payment Agreement serves as a crucial document for businesses and individuals operating under Hong Kong law who need to formalize arrangements for settling overdue payments. It is typically used when a debtor has defaulted on original payment terms but both parties wish to maintain a business relationship and agree on a structured repayment plan. The document addresses key aspects including acknowledgment of the original debt, new payment schedules, interest calculations compliant with Hong Kong regulations, and consequences of default. This agreement is particularly relevant in today's business environment where cash flow management and debt restructuring have become increasingly important. It provides legal protection for both creditor and debtor while ensuring compliance with Hong Kong's Contract Law, Money Lenders Ordinance, and other relevant legislation.

1. Parties: Identifies and defines the Creditor and Debtor, including full legal names and addresses

2. Background: Describes the original debt, circumstances leading to late payment, and purpose of this agreement

3. Definitions: Defines key terms used throughout the agreement including 'Original Debt', 'Late Payment Interest', 'Payment Schedule'

4. Acknowledgment of Debt: Formal acknowledgment of the outstanding amount and its validity by the Debtor

5. Payment Terms: Details of the new payment arrangement including amounts, dates, and method of payment

6. Interest and Charges: Specifies late payment interest rates, calculation methods, and any additional charges

7. Default Provisions: Consequences of failing to meet the new payment terms, including acceleration clauses

8. Representations and Warranties: Basic declarations by both parties regarding their capacity and authority to enter into the agreement

9. Notices: How formal communications between parties should be made and delivered

10. Governing Law and Jurisdiction: Confirms Hong Kong law governs the agreement and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements