Document background
The Credit Agreement Contract is a fundamental document in Philippine banking and finance, used when a lender extends credit facilities to a borrower. It serves as the primary documentation for loan transactions, whether for corporate financing, project funding, or business expansion. The agreement must align with Philippine banking regulations, including BSP circulars, the Truth in Lending Act, and the New Central Bank Act. This document is essential for protecting both lender and borrower interests by clearly defining the credit terms, security arrangements, representations and warranties, covenants, and default provisions. It includes specific requirements for Philippine jurisdiction such as mandatory truth in lending disclosures, interest rate calculations following BSP guidelines, and local security perfection requirements.
