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The Corporation Loan To Shareholder Agreement is a specialized legal instrument used when a Philippine corporation extends a loan to one of its shareholders. This arrangement typically occurs when shareholders require financing for business expansion, personal investment, or other legitimate purposes, and the corporation has available funds to lend. The document must comply with Philippine corporate law, particularly the Revised Corporation Code, and includes provisions for interest rates, repayment terms, security arrangements, and default remedies. It's essential to carefully structure these agreements to avoid issues with corporate governance, ensure tax compliance, and maintain proper documentation for regulatory purposes. The agreement should be authorized by appropriate corporate resolutions and may require specific disclosures to other shareholders and regulatory bodies.

1. Parties: Identifies the corporation as lender and the shareholder as borrower, including complete legal names and addresses

2. Background: Establishes the context of the loan, confirming the borrower's status as a shareholder and the corporation's authority to make the loan

3. Definitions: Defines key terms used throughout the agreement, including financial terms, security-related concepts, and other relevant terminology

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use, including any restrictions on use of funds

5. Interest Rate and Calculation: Details the interest rate, calculation method, and payment frequency

6. Repayment Terms: Outlines the repayment schedule, including payment amounts, due dates, and method of payment

7. Security and Collateral: Describes any security or collateral provided for the loan, including share pledges or other assets

8. Representations and Warranties: States the borrower's confirmations regarding their financial status, authority to enter the agreement, and other material facts

9. Covenants: Lists ongoing obligations of the borrower during the loan term, including financial reporting requirements

10. Events of Default: Defines circumstances constituting default and the corporation's rights in such events

11. Remedies: Outlines the lender's rights and remedies upon default

12. General Provisions: Contains standard clauses including notices, amendments, governing law, and dispute resolution