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Equipment Finance Agreement for Philippines

Equipment Finance Agreement Template for Philippines

This document is a comprehensive Equipment Finance Agreement governed by Philippine law, designed to facilitate the financing of equipment purchases or leases while ensuring compliance with local regulations including the Financing Company Act and Personal Property Security Act. It establishes the terms and conditions for equipment financing, including payment schedules, security interests, maintenance requirements, and default provisions, while incorporating necessary consumer protections and regulatory requirements specific to the Philippine jurisdiction.

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What is a Equipment Finance Agreement?

The Equipment Finance Agreement is a crucial document used in the Philippine business environment when companies or individuals need to finance the acquisition of equipment through loans or leases. This agreement is structured to comply with Philippine laws, including the Financing Company Act (Republic Act No. 8556) and the Personal Property Security Act (Republic Act No. 11057). It details the financing terms, equipment specifications, security arrangements, and ongoing obligations of all parties. The document is particularly important in the Philippine context where businesses often require financing solutions for capital-intensive equipment purchases while ensuring appropriate security interests are created and maintained in accordance with local legislation.

What sections should be included in a Equipment Finance Agreement?

1. Parties: Identification of the finance provider and the borrower/lessee

2. Background: Context of the agreement and brief description of the transaction

3. Definitions and Interpretation: Defined terms and rules of interpretation

4. Equipment Details: Description of the financed equipment and its specifications

5. Finance Terms: Amount financed, interest rate, payment schedule, and payment terms

6. Security Interest: Creation and perfection of security interest in the equipment

7. Conditions Precedent: Conditions that must be met before the agreement becomes effective

8. Representations and Warranties: Statements of fact and assurances from the borrower

9. Covenants: Ongoing obligations of the borrower regarding equipment use and maintenance

10. Insurance Requirements: Required insurance coverage for the equipment

11. Events of Default: Circumstances constituting default and consequences

12. Remedies: Rights and remedies of the finance provider upon default

13. General Provisions: Standard contract clauses including notices, amendments, and governing law

What sections are optional to include in a Equipment Finance Agreement?

1. Guarantees: Required when there is a third-party guarantor for the financing

2. Import Requirements: Needed when the equipment is being imported from another country

3. Installation and Training: Include when the finance provider is responsible for equipment installation or training

4. Service Level Requirements: Required when the agreement includes ongoing service or maintenance obligations

5. Buy-Out Options: Include when the borrower has the option to purchase the equipment before the end of the term

6. Assignment and Subletting: Required when assignment or subletting of equipment is permitted

7. VAT and Tax Provisions: Detailed tax provisions needed for complex transactions or when VAT treatment needs clarification

What schedules should be included in a Equipment Finance Agreement?

1. Equipment Schedule: Detailed description of equipment including make, model, serial numbers, and specifications

2. Payment Schedule: Detailed breakdown of payment amounts, due dates, and interest calculations

3. Delivery and Acceptance Form: Form to be signed upon delivery and acceptance of equipment

4. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

5. Maintenance Requirements: Detailed maintenance schedule and requirements for the equipment

6. Security Documents: Forms for registration of security interest and related security documents

7. Guarantor Documents: Forms and requirements related to guarantees (if applicable)

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

Finance Agreement

Cost

Free to use
Relevant legal definitions















































Clauses

































Relevant Industries

Manufacturing

Construction

Agriculture

Mining

Transportation

Healthcare

Technology

Telecommunications

Retail

Food Processing

Textile Industry

Logistics

Renewable Energy

Relevant Teams

Legal

Finance

Procurement

Operations

Risk Management

Treasury

Compliance

Credit

Asset Management

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Procurement Manager

Asset Manager

Equipment Manager

Risk Manager

Treasury Manager

Operations Director

Credit Manager

Compliance Officer

Contract Administrator

Financial Controller

Business Development 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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