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Sub Loan Agreement for Philippines

Sub Loan Agreement Template for Philippines

A Sub Loan Agreement under Philippine law is a specialized financial contract where a primary loan is broken down and re-lent to end borrowers. This document establishes the terms and conditions for the subsequent lending of funds, ensuring compliance with Philippine banking regulations, including the New Central Bank Act and Truth in Lending Act. It details the loan amount, interest rates, repayment terms, security arrangements, and obligations of all parties involved, while incorporating necessary provisions for regulatory compliance and risk management under Philippine jurisdiction.

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What is a Sub Loan Agreement?

The Sub Loan Agreement is a crucial document used in situations where an organization that has received a primary loan wishes to on-lend these funds to other borrowers. This arrangement is common in development finance, microfinance, and banking sectors in the Philippines. The agreement must comply with Philippine banking laws and regulations, including the New Central Bank Act, Truth in Lending Act, and relevant BSP circulars. The document typically includes comprehensive details about loan terms, disbursement conditions, repayment schedules, security arrangements, and default provisions. It's particularly important for ensuring clear accountability and risk management in multi-tier lending structures, while maintaining compliance with Philippine regulatory requirements for financial transactions.

What sections should be included in a Sub Loan Agreement?

1. Parties: Identification of the primary lender, sub-lender, and borrower with complete details

2. Background: Context of the agreement, including details of the primary loan and purpose of the sub-loan

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

4. The Facility: Details of the loan amount, purpose, and availability period

5. Interest and Fees: Interest rate, calculation method, fees, and charges

6. Disbursement: Conditions and procedures for loan disbursement

7. Repayment: Repayment schedule, prepayment terms, and payment mechanics

8. Representations and Warranties: Standard and specific representations by both parties

9. Covenants: Positive and negative covenants of the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Remedies: Rights and remedies available upon default

12. Miscellaneous: Standard provisions including notices, amendments, governing law

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

1. Security: Details of any collateral or security arrangements, used when the sub-loan is secured

2. Conditions Precedent: Specific conditions that must be met before disbursement, used for complex transactions

3. Guarantee: Terms of any guarantee provided, included when there is a guarantor

4. Special Covenants: Project-specific or special purpose covenants, used for specific types of loans

5. Assignment and Transfer: Terms for transferring or assigning the loan, included when transfer rights are needed

6. Tax Provisions: Detailed tax arrangements, used when complex tax implications exist

7. Multiple Drawings: Procedures for multiple disbursements, used for facility-type arrangements

What schedules should be included in a Sub Loan Agreement?

1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest rate, and payment schedule

2. Schedule 2 - Disbursement Conditions: Specific documents and conditions required for disbursement

3. Schedule 3 - Repayment Schedule: Detailed amortization table or repayment terms

4. Schedule 4 - Form of Disbursement Request: Standard form for requesting loan disbursements

5. Schedule 5 - Security Details: Description of security or collateral (if applicable)

6. Schedule 6 - Fees and Charges: Detailed breakdown of all applicable fees and charges

7. Appendix A - Compliance Documents: List of required compliance and regulatory documents

8. Appendix B - Standard Forms: Collection of standard forms for notices, certificates, and other communications

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 and Financial Services

Microfinance

Development Finance

Real Estate

Infrastructure

Agriculture

Small and Medium Enterprises

Corporate Finance

Public Sector Finance

Relevant Teams

Legal

Finance

Compliance

Credit Risk

Treasury

Operations

Corporate Banking

Due Diligence

Portfolio Management

Credit Administration

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Credit Risk Manager

Loan Officer

Treasury Manager

Banking Operations Manager

Financial Controller

Corporate Lawyer

Credit Analyst

Relationship Manager

Due Diligence Officer

Portfolio Manager

Investment Officer

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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