For a ship operation loan, Plaintiff bank made the loan agreement, ship mortgage contract and other related contracts with Defendant shipping company, and other Defendants as guarantors provided guarantees therefor. In all those contracts, the parties chose the laws of HKSAR as governing law. The shipping company did not delay in the payment of principal and interest, but committed a few defaults under the ship mortgage contract. Then the bank declared acceleration, arrested the mortgaged ship for enforcement and sued the shipping company and guarantors. The court honoured the parties’ choice of the laws of HKSAR and recognized a few English judgments as part of those laws. On that basis, it held that the bank was entitled to declare acceleration and arrest the ship under the mortgage contract, even if the shipping company did not delay in payment of the principal and interest under the loan agreement. Thus, the shipping company should pay all of the unpaid principal and interest, and the guarantors should undertake the joint and several liability therefor.