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Secured Loan Agreement for Philippines

Secured Loan Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that establishes the terms and conditions of a loan facility secured by specific assets or property. The agreement details the loan amount, interest rates, repayment terms, and security arrangements while ensuring compliance with Philippine banking regulations, including the Truth in Lending Act and Personal Property Security Act. It includes provisions for enforcement rights, events of default, and remedies available to the lender, while incorporating necessary safeguards and requirements under Philippine civil law and financial regulations.

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Secured Loan Agreement

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What is a Secured Loan Agreement?

The Secured Loan Agreement is a crucial document used when a lender provides financing to a borrower under Philippine law, with the loan being secured against specific assets or property. This type of agreement is essential for protecting the lender's interests while providing clarity to the borrower about their obligations and the consequences of default. The document must comply with Philippine banking regulations, including the New Central Bank Act and Truth in Lending Act, and typically includes detailed provisions about the security arrangement, perfection requirements, and enforcement mechanisms. The agreement becomes particularly important in commercial lending scenarios where significant amounts are involved and the lender requires substantial protection through collateral.

What sections should be included in a Secured Loan Agreement?

1. Parties: Identifies and defines the Lender, Borrower, and any guarantors or security providers

2. Background: Sets out the context of the loan and security arrangement

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

4. The Facility: Details the loan amount, purpose, and drawdown conditions

5. Interest and Fees: Specifies interest rate, calculation method, fees, and payment terms

6. Security: Describes the nature and extent of security being provided

7. Representations and Warranties: Sets out the borrower's confirmations regarding their status and ability to enter into the agreement

8. Covenants: Details positive and negative obligations of the borrower during the loan term

9. Events of Default: Lists circumstances that would constitute default and trigger enforcement rights

10. Enforcement: Describes the lender's rights and remedies upon default

11. Payments and Application of Payments: Specifies payment mechanics and order of application

12. Assignment and Transfer: Sets out rules for transferring rights under the agreement

13. Notices: Details how formal communications between parties should be made

14. Governing Law and Jurisdiction: Specifies Philippine law as governing law and jurisdiction for disputes

15. Execution: Formal signing section with attestation requirements

What sections are optional to include in a Secured Loan Agreement?

1. Security Trustee Provisions: Required when there are multiple lenders and a security trustee arrangement

2. Guarantee: Include when there are third-party guarantors for the loan

3. Insurance: Detailed insurance requirements when specific insurance coverage is required for the security

4. Tax Provisions: Extended tax provisions when complex tax implications exist

5. Increased Costs and Illegality: Protection for lenders against regulatory changes, particularly relevant for long-term loans

6. Set-off Rights: Detailed set-off provisions when parties have multiple relationships

7. Agency Provisions: Required for syndicated loans with an agent bank

8. Currency Provisions: Needed when loan or security involves multiple currencies

What schedules should be included in a Secured Loan Agreement?

1. Schedule 1 - Conditions Precedent: List of documents and conditions required before loan drawdown

2. Schedule 2 - Security Assets: Detailed description of all assets provided as security

3. Schedule 3 - Repayment Schedule: Amortization table or repayment terms

4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursements

5. Schedule 5 - Security Documents: Forms of security documents required

6. Schedule 6 - Permitted Security: List of existing or permitted security interests

7. Appendix A - Property Documents: Copies of relevant property titles or documents if real property is security

8. Appendix B - Corporate Authorizations: Corporate resolutions and authorizations of parties

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

Banking & Financial Services

Real Estate & Property

Manufacturing

Agriculture

Construction

Retail & Commerce

Technology & Communications

Energy & Resources

Transportation & Logistics

Healthcare & Pharmaceuticals

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit Analysis

Corporate Banking

Operations

Treasury

Business Development

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Loan Officer

Security Trustee

Compliance Officer

Banking Operations Manager

Treasury Manager

Corporate Secretary

Financial Controller

Business Development Manager

Relationship 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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