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Termination Of Security Agreement for Philippines

Termination Of Security Agreement Template for Philippines

A formal legal document governed by Philippine law that officially terminates and releases security interests previously granted under a security agreement. This document is used when secured obligations have been satisfied or parties have agreed to release the security. It includes provisions for the release of collateral, cancellation of security registrations, and return of security documents, all in compliance with Philippine legal requirements including the Civil Code, Personal Property Security Act, and relevant banking regulations. The document ensures proper documentation of the termination and protects both creditor and debtor interests in the release process.

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What is a Termination Of Security Agreement?

The Termination of Security Agreement is a crucial document used in Philippine commercial and financial transactions when secured obligations have been fully satisfied or parties have agreed to release security interests. It serves as formal evidence of the discharge of security and release of collateral, which is essential for clearing title records and enabling assets to be freely dealt with by the debtor. This document must comply with Philippine legal requirements, including the Civil Code, Personal Property Security Act, and relevant banking regulations. It's particularly important in contexts involving registered securities, real estate mortgages, or personal property security interests. The document typically includes detailed provisions about the original security agreement, confirmation of obligation satisfaction, release mechanisms, and requirements for deregistration or updating public records.

What sections should be included in a Termination Of Security Agreement?

1. Parties: Identifies all parties to the termination agreement, including the secured creditor and the debtor/grantor

2. Background: Recitals describing the original security agreement, its date, and the secured obligations

3. Definitions: Defines key terms used in the termination agreement, including references to the original security agreement and related documents

4. Acknowledgment of Satisfaction: Confirms that all secured obligations have been satisfied or conditions for release have been met

5. Termination Declaration: Formal statement terminating and releasing the security interest

6. Release of Security Interest: Detailed provisions regarding the release of security interests and return of any pledged collateral

7. Return of Documents: Provisions for returning original security documents and canceling any registrations

8. Representations and Warranties: Basic representations regarding authority to terminate and release the security interest

9. Governing Law: Specifies Philippine law as the governing law

10. Execution: Signature blocks and execution formalities

What sections are optional to include in a Termination Of Security Agreement?

1. Partial Termination Provisions: Required when only certain security interests or collateral are being released while others remain in effect

2. Surviving Provisions: Needed when certain provisions of the original agreement should survive the termination

3. Registration and Filing: Required when the security interest was registered and needs formal deregistration

4. Indemnification: Optional provisions for indemnification related to the termination

5. Further Assurances: Additional cooperation requirements for completing any necessary termination procedures

6. Multiple Security Interests: Required when dealing with multiple security agreements or cross-collateralization

What schedules should be included in a Termination Of Security Agreement?

1. Schedule A - Original Security Agreement: Copy or details of the security agreement being terminated

2. Schedule B - Released Collateral: Detailed description of all collateral being released from the security interest

3. Schedule C - Registration Details: List of all registrations or filings to be terminated or amended

4. Schedule D - Related Security Documents: List of related security documents affected by the termination

5. Appendix 1 - Forms of Release: Standard forms for releasing specific types of security interests or registrations

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

Cost

Free to use
Relevant legal definitions






























Clauses


























Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Agriculture

Mining and Natural Resources

Construction

Transportation and Logistics

Retail and Commercial

Energy and Utilities

Technology and Telecommunications

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Secretariat

Loan Operations

Securities Administration

Real Estate

Contract Management

Relevant Roles

Chief Financial Officer

Legal Counsel

Corporate Secretary

Finance Director

Credit Risk Manager

Loan Officer

Security Trustee

Collateral Manager

Compliance Officer

Treasury Manager

Real Estate Manager

Contract Administrator

Legal Operations Manager

Banking Operations 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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