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The Company Loan Agreement To Employee is a vital document for organizations in the Philippines offering financial assistance to their employees through corporate loan programs. This agreement is used when an employer extends a loan to an employee, typically for personal needs, housing, education, or emergency purposes. It ensures compliance with Philippine labor laws, particularly regarding salary deductions, and incorporates requirements from various regulations including the Labor Code, Civil Code, and Truth in Lending Act. The document protects both employer and employee interests by clearly defining loan terms, repayment mechanisms, and consequences of default or employment termination. It's especially relevant in the Philippine context where employee loan programs are common benefits offered by companies to support their workforce's financial needs.

1. Parties: Identifies the employer company and the employee borrower, including their complete legal names, addresses, and roles

2. Background: Sets out the context of the loan agreement, including the employment relationship and purpose of the loan

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

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its approved purpose

5. Interest Rate: Details the applicable interest rate, whether fixed or variable, and method of calculation

6. Term and Repayment: Specifies the loan duration and repayment schedule, including payment amounts and frequency

7. Method of Payment: Details how payments will be made, including salary deduction authorization and compliance with Philippine Labor Code

8. Employee Covenants: Employee's obligations and promises, including maintaining employment and proper use of loan proceeds

9. Events of Default: Lists circumstances that constitute default and their consequences

10. Acceleration: Conditions under which the entire loan becomes immediately due and payable

11. Termination of Employment: Consequences and handling of the loan in case of employment termination

12. Governing Law: Specifies Philippine law as governing law and relevant jurisdiction

13. Execution: Signature blocks and execution requirements