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The Installment Credit Agreement serves as a fundamental legal instrument in Philippine financial transactions, used when a creditor extends credit to be repaid in regular installments over a specified period. This document is essential for both consumer and commercial financing, commonly used in scenarios ranging from vehicle purchases to equipment financing and retail credit arrangements. It must comply with Philippine regulations, particularly the Truth in Lending Act (Republic Act No. 3765), Consumer Act of the Philippines (Republic Act No. 7394), and relevant Bangko Sentral ng Pilipinas circulars. The agreement typically includes detailed payment terms, interest calculations, security arrangements if applicable, and mandatory disclosures required by Philippine law. It's designed to protect both creditor and debtor interests while ensuring transparency in credit transactions.

1. Parties: Identification of the creditor and debtor, including complete legal names, addresses, and tax identification numbers

2. Background: Context of the credit agreement, relationship between parties, and purpose of the loan

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

4. Principal Amount and Interest Rate: Clear statement of the loan amount and applicable interest rate(s), including computation method as required by Truth in Lending Act

5. Payment Terms: Details of installment payments, including amount, frequency, and due dates

6. Method of Payment: Acceptable payment methods and payment processing details

7. Fees and Charges: Comprehensive list of all applicable fees, charges, and penalties

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

9. Events of Default: Circumstances constituting default and consequences thereof

10. Remedies: Rights and remedies available to the creditor in case of default

11. Term and Termination: Duration of the agreement and conditions for early termination

12. Notices: Process and addresses for formal communications between parties

13. Governing Law: Specification of Philippine law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments