Document background
The Personal Guarantee Promissory Note is a specialized financial instrument commonly used in Hong Kong business transactions where additional security is required for payment obligations. This document type serves multiple purposes by combining the features of a negotiable instrument under the Bills of Exchange Ordinance with the security of a personal guarantee. It is particularly useful in situations where a creditor requires both a clear, unconditional promise of payment from a primary debtor and additional security through a personal guarantee from a third party. The document typically includes detailed payment terms, guarantee provisions, enforcement mechanisms, and necessary party details. Its dual nature provides creditors with flexibility in enforcement, allowing them to pursue either the primary debtor or the guarantor, making it a valuable tool in commercial transactions, lending arrangements, and business dealings where payment security is paramount.
