Document background
The Promissory Note Credit Agreement is a vital financial instrument used in the Philippines for both commercial and personal lending transactions. It serves as a hybrid document that incorporates the enforceability of a promissory note with the comprehensive terms typically found in a credit agreement. This document is particularly useful when parties need a detailed lending arrangement that can also serve as a negotiable instrument under Philippine law. It must comply with various regulations including the Negotiable Instruments Law (Act No. 2031), Truth in Lending Act, and the New Central Bank Act. The document is commonly used for business loans, property financing, equipment financing, and personal loans where formal documentation of debt obligations and credit terms is required. It includes specific provisions for interest calculation, payment schedules, security arrangements, and default remedies, all structured to be enforceable under Philippine jurisdiction.
