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Installment Agreement
"I need an Installment Agreement for the sale of industrial equipment worth PHP 2,500,000 to a manufacturing company, with monthly payments over 36 months starting March 2025, including provisions for equipment maintenance and insurance requirements."
1. Parties: Identification of all parties to the agreement, including complete legal names and addresses
2. Background: Context of the agreement, including the purpose of the installment arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Purchase Price and Payment Terms: Total purchase price, down payment, number of installments, and payment schedule
5. Interest Rate and Finance Charges: Clear statement of interest rate, calculation method, and total finance charges as required by Truth in Lending Act
6. Payment Method and Processing: Acceptable payment methods, processing details, and payment allocation
7. Security and Collateral: Details of any security or collateral provided for the installment payments
8. Default and Remedies: Definition of default events and available remedies
9. Representations and Warranties: Standard representations and warranties from both parties
10. Title and Risk: Transfer of title and risk provisions
11. Governing Law: Specification of Philippine law as governing law
12. Dispute Resolution: Process for resolving disputes between parties
13. Execution: Signature blocks and execution requirements
1. Insurance Requirements: Required when the asset being purchased needs to be insured during the installment period
2. Co-Maker Provisions: Include when a co-maker or guarantor is part of the agreement
3. Prepayment Terms: Include when early payment options and related discounts are offered
4. Electronic Payment Authorization: Include when automatic electronic payments are being set up
5. Assignment and Transfer: Include when either party needs the right to assign the agreement
6. Maintenance and Use: Include for agreements involving equipment or vehicles that require specific maintenance
7. Return or Repossession: Include when specific procedures for return or repossession need to be detailed
1. Schedule A - Payment Schedule: Detailed amortization schedule showing all payments, including principal and interest breakdown
2. Schedule B - Item Description: Detailed description of items being purchased, including serial numbers or identifying information
3. Schedule C - Interest Calculation Method: Detailed explanation of interest calculation method and examples
4. Appendix 1 - Truth in Lending Disclosure: Mandatory disclosure statement as required by the Truth in Lending Act
5. Appendix 2 - Security Documentation: Copies of security documents or collateral agreements if applicable
6. Appendix 3 - Insurance Requirements: Detailed insurance requirements and acceptable providers if applicable
Authors
Retail
Automotive
Real Estate
Construction
Manufacturing
Consumer Goods
Financial Services
Technology
Industrial Equipment
Home Appliances
Legal
Finance
Sales
Compliance
Risk Management
Collections
Customer Service
Operations
Credit Administration
Contract Management
Sales Manager
Credit Officer
Finance Manager
Legal Counsel
Compliance Officer
Contract Administrator
Risk Manager
Collections Manager
Business Development Manager
Customer Service Manager
Operations Manager
Chief Financial Officer
Credit Risk Analyst
Account Executive
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