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The Personal Auto Loan Contract serves as the primary legal instrument for vehicle financing transactions in the Philippines, typically used when an individual seeks to purchase a motor vehicle through financing from a bank or lending institution. This document must comply with strict regulatory requirements including the Truth in Lending Act (RA 3765), Consumer Act of the Philippines (RA 7394), and various Bangko Sentral ng Pilipinas (BSP) circulars governing consumer loans. The contract comprehensively covers loan terms, security arrangements, borrower obligations, and lender rights, incorporating mandatory disclosures about interest rates, fees, and charges. It establishes the lender's security interest in the vehicle while ensuring consumer protection through clear terms and transparent fee structures, making it essential for both financial institutions and consumers in the Philippine auto financing market.

1. Parties: Identifies the lender and borrower with complete details including name, address, and contact information

2. Background: Establishes the context of the loan agreement and the borrower's request for vehicle financing

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Details: Specifies the principal amount, interest rate, term, and purpose of the loan

5. Vehicle Details: Describes the vehicle being financed including make, model, year, color, and vehicle identification number

6. Repayment Terms: Details the payment schedule, installment amounts, and payment methods

7. Security Interest: Establishes the lender's security interest in the vehicle and registration requirements

8. Insurance Requirements: Specifies mandatory insurance coverage for the vehicle and requirements for policy maintenance

9. Borrower's Representations and Warranties: Contains borrower's declarations regarding their capacity to enter the agreement and vehicle ownership

10. Borrower's Obligations: Lists ongoing obligations including vehicle maintenance, usage restrictions, and reporting requirements

11. Events of Default: Defines circumstances constituting default and consequences thereof

12. Enforcement Rights: Details lender's rights and remedies in case of default, including repossession procedures

13. General Provisions: Contains standard clauses on notices, amendments, governing law, and dispute resolution