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The Auto Loan Security Agreement is a crucial document used in Philippine vehicle financing transactions where a lender provides funding for a vehicle purchase and takes a security interest in the vehicle as collateral. This document is essential when a customer seeks financing for a vehicle purchase but cannot pay the full purchase price upfront. The agreement complies with Philippine banking regulations, particularly the Financing Company Act and Truth in Lending Act, ensuring proper disclosure of loan terms and establishment of security interests. It protects the lender's rights to repossess the vehicle in case of default while ensuring fair treatment of the borrower under consumer protection laws. The document includes detailed vehicle information, loan terms, payment schedules, borrower obligations, and enforcement mechanisms, all structured to be enforceable under Philippine law.

1. Parties: Identifies the financing company (lender), the borrower, and any guarantors with their complete details including addresses and tax identification numbers

2. Background: Sets out the context of the agreement, including the borrower's request for financing and the vehicle being purchased

3. Definitions: Defines key terms used throughout the agreement, including technical financial terms and specific references to the vehicle and security arrangements

4. Loan Amount and Terms: Specifies the principal amount, interest rate, term length, and payment schedule as required by the Truth in Lending Act

5. Security Interest: Establishes the vehicle as collateral and details the security interest being created under the Personal Property Security Act

6. Representations and Warranties: Contains borrower's confirmations regarding their ability to enter into the agreement, vehicle ownership, and accuracy of provided information

7. Covenants: Sets out ongoing obligations including vehicle maintenance, insurance requirements, and restrictions on vehicle use or transfer

8. Registration and Documentation: Details requirements for vehicle registration, recording of the security interest, and maintenance of documentation

9. Events of Default: Lists circumstances constituting default and the lender's rights and remedies in such events

10. Enforcement Rights: Describes the lender's rights to repossess and dispose of the vehicle upon default, following Philippine law requirements

11. General Provisions: Contains standard clauses including notices, amendments, governing law, and dispute resolution

12. Execution: Signature blocks and notarization requirements following Philippine legal formalities