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Credit Agreement Between Two Parties Template for Philippines

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Key Requirements PROMPT example:

Credit Agreement Between Two Parties

"I need a Credit Agreement Between Two Parties for an unsecured business loan of 5 million PHP between my tech startup and a private lender, with monthly repayments over 24 months starting March 2025, including standard default provisions and acceleration clauses."

Document background
The Credit Agreement Between Two Parties is a fundamental legal instrument used in the Philippines for documenting lending arrangements between a lender and a borrower. This document is essential for both commercial and private lending transactions, providing a legally binding framework that protects the interests of all parties involved. It must comply with Philippine banking regulations, the Civil Code of the Philippines, and other relevant financial laws such as the Truth in Lending Act. The agreement typically includes detailed provisions on loan amount, interest calculations, repayment schedules, events of default, and remedies, while also incorporating any necessary security arrangements. It's particularly important in the Philippine context where formal documentation of financial obligations is required for legal enforcement and regulatory compliance.
Suggested Sections

1. Parties: Identification of the lender and borrower with complete details as required by Philippine regulations

2. Background: Context of the credit agreement and the purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. The Facility: Details of the credit facility including the principal amount, purpose, and availability

5. Interest: Interest rate, calculation method, and payment frequency in compliance with Philippine banking regulations

6. Repayment: Repayment schedule, method of payment, and prepayment provisions

7. Conditions Precedent: Conditions that must be satisfied before the loan becomes available

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Positive and negative obligations of the borrower during the loan term

10. Events of Default: Circumstances that would constitute default and their consequences

11. Fees and Expenses: All applicable fees, charges, and cost allocations

12. Notices: Communication methods and contact details for formal notices

13. Assignment and Transfer: Rules regarding transfer of rights and obligations under the agreement

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

15. Execution: Signature blocks and execution formalities

Optional Sections

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

2. Guarantees: Terms of any guarantees provided, included when there are third-party guarantors

3. Insurance: Insurance requirements for the borrower or any collateral, included for secured loans or when specific risks need to be covered

4. Tax Provisions: Detailed tax considerations and allocations, included when complex tax implications exist

5. Co-Borrower Provisions: Terms specific to co-borrowers, included when there are multiple borrowers

6. Foreign Currency Provisions: Currency conversion and exchange rate provisions, included for loans in foreign currency

7. Electronic Execution: Provisions for electronic signing and documentation, included when agreement will be executed electronically

Suggested Schedules

1. Schedule 1 - Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Schedule 2 - Conditions Precedent Documents: List of required documents and conditions to be satisfied

3. Schedule 3 - Form of Drawdown Notice: Template for requesting disbursement of the loan

4. Schedule 4 - Security Details: Detailed description of any collateral or security arrangements

5. Schedule 5 - Fees Schedule: Breakdown of all applicable fees and charges

6. Appendix A - Calculation of Interest: Detailed methodology for interest calculation

7. Appendix B - Form of Compliance Certificate: Template for periodic compliance reporting

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

Relevant legal definitions
Clauses





































Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Retail

Agriculture

Technology

Construction

Healthcare

Education

Small and Medium Enterprises

Transportation

Energy

Mining

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Retail Banking

Documentation

Risk Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Risk Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Banking Officer

Loan Officer

Credit Analyst

Financial Controller

Business Development Manager

Account Manager

Risk Assessment Officer

Documentation Specialist

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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