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The Car Loan Agreement Between Family is a crucial document used in the Philippines when one family member provides financing to another for vehicle purchase. This agreement serves to protect both parties' interests while maintaining family harmony, documenting essential terms such as loan amount, payment schedule, and vehicle details. It's particularly relevant in the Philippine context where family-based financial arrangements are common but need proper documentation for legal clarity and potential tax purposes. The document complies with Philippine civil law, family law, and financial regulations, making it enforceable while being sensitive to family relationships. It's especially useful when families want to avoid commercial loan interest rates but still need a formal structure for the arrangement. The agreement includes vehicle information, payment terms, maintenance requirements, and optional provisions for interest, insurance, and dispute resolution.

1. Parties: Identifies the family member providing the loan (Lender) and the family member receiving the loan (Borrower), including their complete legal names and addresses

2. Background: Explains the context of the family loan arrangement and the purpose of the loan for vehicle purchase

3. Definitions: Defines key terms used throughout the agreement including 'Vehicle', 'Loan Amount', 'Interest Rate', and 'Payment Schedule'

4. Loan Details: Specifies the principal amount, interest rate (if any), and total amount to be repaid

5. Vehicle Information: Details of the vehicle being purchased including make, model, year, color, and vehicle identification number (VIN)

6. Payment Terms: Outlines the payment schedule, payment methods, and due dates

7. Security and Collateral: Establishes the vehicle as collateral for the loan and requirements for vehicle insurance

8. Default Provisions: Defines what constitutes a default and the consequences, while considering the family relationship

9. Vehicle Maintenance and Use: Borrower's obligations regarding vehicle maintenance and permitted use

10. Representations and Warranties: Basic statements about the capacity to enter into the agreement and ownership of the vehicle

11. Termination: Conditions under which the agreement can be terminated and the process for early loan repayment

12. Governing Law: Specifies that the agreement is governed by Philippine law