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Addendum To Loan Agreement Template for Philippines

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Key Requirements PROMPT example:

Addendum To Loan Agreement

"I need an Addendum to Loan Agreement to modify the payment terms of our existing corporate loan facility from quarterly to monthly installments, extend the maturity date to March 15, 2025, and adjust the interest rate from fixed to floating rate based on BSP benchmark."

Document background
An Addendum To Loan Agreement is a crucial document used when parties to an existing loan agreement in the Philippines need to modify specific terms without creating an entirely new agreement. It's commonly required when circumstances necessitate changes to interest rates, payment terms, security arrangements, or other loan conditions. The document must comply with Philippine banking regulations, including BSP circulars and the Truth in Lending Act, particularly regarding disclosure requirements. This addendum becomes legally binding upon execution and forms an integral part of the original loan documentation, often requiring review from legal counsel and, in some cases, regulatory approval. It's particularly important in restructuring scenarios, during economic changes affecting loan terms, or when borrowers require modifications due to changed circumstances.
Suggested Sections

1. Parties: Identification of the lender and borrower as named in the original loan agreement

2. Background: Reference to the original loan agreement, including its date and purpose, and the reason for this addendum

3. Definitions: Key terms used in the addendum, incorporating definitions from the original agreement and any new terms

4. Amendment Details: Specific modifications to the original loan agreement, clearly stating both the original and amended terms

5. Effect on Original Agreement: Statement that all other terms of the original agreement remain in full force and effect

6. Governing Law: Confirmation that the addendum is governed by Philippine law

7. Integration: Statement that the addendum forms part of the original loan agreement

8. Execution: Signature blocks for all parties and witnesses

Optional Sections

1. Conditions Precedent: Additional conditions that must be met before the amendments take effect, used when modifications require specific prerequisites

2. Representations and Warranties: Updated representations if the modifications require new assurances from either party

3. Security Modifications: Changes to any security arrangements, used when the amendments affect collateral or guarantees

4. Regulatory Compliance: Specific references to BSP regulations or other relevant laws, used when modifications involve regulated aspects

5. Fees and Expenses: Details of any costs associated with the amendment, used when the modification involves fee changes or new charges

Suggested Schedules

1. Schedule of Amended Terms: Detailed comparison of original and modified terms in tabular format

2. Revised Payment Schedule: Updated amortization schedule if payment terms are modified

3. Modified Security Details: Updated collateral or security information if security arrangements are changed

4. Required Approvals: Copies of regulatory or corporate approvals required for the modifications

5. Supporting Documents: Any additional documentation evidencing the need or basis for the modifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































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Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Agriculture

Mining

Infrastructure

Telecommunications

Energy

Transportation

Small and Medium Enterprises

Relevant Teams

Legal

Compliance

Credit Risk

Finance

Treasury

Operations

Documentation

Corporate Secretariat

Risk Management

Relationship Management

Relevant Roles

Legal Counsel

Loan Officer

Credit Manager

Compliance Officer

Risk Manager

Corporate Secretary

Chief Financial Officer

Treasury Manager

Banking Operations Manager

Credit Risk Officer

Relationship Manager

Document Controller

Legal Manager

Banking Executive

Finance Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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