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Debt Agreement Form for Philippines

Debt Agreement Form Template for Philippines

A comprehensive legal document governed by Philippine law that formalizes a lending arrangement between parties, establishing the terms and conditions of a debt obligation. This agreement details the loan amount, interest rates, repayment schedule, security arrangements, and default provisions in compliance with Philippine banking regulations and the Civil Code. It incorporates necessary provisions for both corporate and individual lending scenarios, ensuring transparency under the Truth in Lending Act while providing adequate protection for all parties involved in the transaction.

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What is a Debt Agreement Form?

The Debt Agreement Form is a crucial legal instrument used in the Philippines to document and formalize lending arrangements between parties. It serves as a comprehensive contract that complies with Philippine banking regulations, the Civil Code, and the Truth in Lending Act. This document is essential when any party wishes to extend or receive credit, whether in a corporate or personal capacity. The agreement typically includes detailed terms about the loan amount, interest calculations, repayment schedules, security arrangements, events of default, and remedies. It's designed to protect both lender and borrower interests while ensuring transparency and enforceability under Philippine law. The document becomes particularly important in establishing clear rights and obligations, facilitating loan enforcement, and providing a framework for resolving potential disputes.

What sections should be included in a Debt Agreement Form?

1. Parties: Identification and details of the Lender and Borrower, including complete names, addresses, and tax identification numbers

2. Background: Context of the debt agreement, including the purpose of the loan and any relevant pre-existing relationships

3. Definitions: Clear definitions of key terms used throughout the agreement

4. Loan Amount and Disbursement: Specification of the principal amount and how/when it will be disbursed

5. Interest Rate: Clear statement of interest rate, calculation method, and compliance with Philippine banking regulations

6. Repayment Terms: Schedule of payments, payment methods, and due dates

7. Security and Collateral: Details of any assets pledged as security for the loan

8. Events of Default: Conditions that constitute default and consequences thereof

9. Representations and Warranties: Statements of fact and promises made by the Borrower

10. Covenants: Ongoing obligations of the Borrower during the loan term

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional details

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Debt Agreement Form?

1. Guarantor Provisions: Required when a third party is guaranteeing the loan

2. Insurance Requirements: Included when specific insurance coverage is required for the loan or collateral

3. Prepayment Terms: When early repayment options are to be included, specifying any penalties or conditions

4. Assignment and Transfer: When the agreement allows for transfer of rights or obligations

5. Electronic Execution: When the agreement may be executed electronically under the E-Commerce Act

6. Co-Borrower Provisions: Required when multiple borrowers are jointly liable for the loan

7. Special Purpose Conditions: When the loan is restricted to specific uses or purposes

What schedules should be included in a Debt Agreement Form?

1. Schedule A - Repayment Schedule: Detailed amortization table showing payment dates, amounts, and breakdown of principal and interest

2. Schedule B - Collateral Description: Detailed description of assets provided as security, including valuations and documentation

3. Schedule C - Disbursement Requirements: List of conditions and documents required for loan disbursement

4. Appendix 1 - Form of Promissory Note: Template of the promissory note to be executed alongside the agreement

5. Appendix 2 - Security Documents: Forms of security documents required for the collateral

6. Appendix 3 - Compliance Certificates: Templates for periodic compliance certifications required from the Borrower

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate & Property

Small & Medium Enterprises

Construction & Development

Manufacturing

Agriculture

Retail & Commerce

Education

Healthcare

Technology & Innovation

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Treasury

Operations

Collections

Corporate Secretariat

Credit Administration

Risk Management

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Credit Officer

Loan Officer

Risk Manager

Compliance Officer

Treasury Manager

Corporate Secretary

Financial Controller

Banking Operations Manager

Credit Risk Analyst

Legal Administrator

Collections Manager

Account Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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