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The Loan Extension Agreement is utilized when parties to an existing loan agreement in the Philippines wish to extend the loan's maturity date rather than requiring full repayment or refinancing. This document is particularly relevant in situations where the borrower requires additional time for repayment but has otherwise maintained good standing. The agreement must comply with Philippine banking regulations, including the Truth in Lending Act and BSP circulars, especially regarding interest rate disclosures and modifications. It typically includes details about the extended term, any adjusted interest rates or payment schedules, confirmation of existing security arrangements, and any new conditions imposed by the lender. This type of agreement is common in both commercial and retail lending sectors and can be used for various loan types, from corporate facilities to property mortgages.

1. Parties: Identification of the Lender and Borrower with complete details

2. Background: Reference to original loan agreement, current outstanding amount, and reason for extension

3. Definitions: Key terms used in the agreement including 'Original Loan Agreement', 'Extension Period', 'New Maturity Date'

4. Extension of Loan: Clear statement of the extension period and new maturity date

5. Interest Rate: Specification of interest rate during the extension period

6. Repayment Terms: Modified payment schedule and terms during the extension period

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

8. Representations and Warranties: Confirmation that original representations remain true and additional representations if required

9. Security: Confirmation that existing security remains in effect for the extended period

10. Fees and Costs: Any fees or costs associated with the extension

11. Effect on Original Agreement: Statement that all other terms of the original agreement remain in force

12. Governing Law: Confirmation of Philippine law as governing law

13. Execution: Signature blocks and execution requirements