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Creditor Agreement
"I need a Creditor Agreement for a syndicated loan facility of PHP 50 million to a manufacturing company, with three participating banks and quarterly interest payments starting March 2025, including provisions for collateral over the company's equipment and inventory."
1. Parties: Identification of the creditor and debtor, including complete legal names, addresses, and registration details if applicable
2. Background: Context of the credit arrangement, relationship between parties, and purpose of the loan
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Amount and Purpose: Specification of the credit amount and its intended use
5. Interest Rate and Charges: Details of interest rate, calculation method, and any additional charges or fees
6. Repayment Terms: Payment schedule, method of payment, and consequences of early or late payment
7. Security and Collateral: Details of any assets or guarantees securing the loan
8. Representations and Warranties: Statements of fact and assurances from the debtor regarding their financial condition and ability to repay
9. Covenants: Ongoing obligations of the debtor during the loan term
10. Events of Default: Circumstances constituting default and their consequences
11. Remedies: Rights and actions available to the creditor in case of default
12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of courts
13. Notices: Process for formal communications between parties
14. Execution: Signature blocks and execution requirements
1. Guarantor Provisions: Used when a third party guarantees the loan, detailing guarantor's obligations and rights
2. Insurance Requirements: Included when specific insurance coverage is required for secured assets
3. Assignment and Transfer: Used when rights to the credit may be transferred to other parties
4. Syndication Provisions: Required for loans involving multiple creditors
5. Force Majeure: Included to address extraordinary circumstances affecting loan performance
6. Anti-Money Laundering Compliance: Required for high-value loans or when parties are subject to AML regulations
7. Electronic Execution: Required when agreement may be executed electronically under E-Commerce Act
1. Schedule A - Payment Schedule: Detailed amortization table showing payment dates and amounts
2. Schedule B - Collateral Description: Detailed description of assets provided as security
3. Schedule C - Conditions Precedent: List of conditions to be met before loan disbursement
4. Schedule D - Form of Promissory Note: Template of promissory note to be executed
5. Schedule E - Compliance Certificates: Templates for periodic compliance certifications
6. Appendix 1 - Interest Calculation Methods: Detailed explanation of interest computation
7. Appendix 2 - Required Insurance Coverage: Specifications for required insurance policies
Authors
Banking & Finance
Real Estate
Manufacturing
Retail
Construction
Agriculture
Technology
Healthcare
Education
Transportation
Energy
Small & Medium Enterprises
Legal
Finance
Risk Management
Compliance
Credit Operations
Collections
Treasury
Corporate Banking
Retail Banking
Documentation
Due Diligence
Credit Officer
Loan Officer
Risk Manager
Compliance Officer
Legal Counsel
Financial Controller
Chief Financial Officer
Collections Manager
Account Manager
Credit Analyst
Banking Operations Manager
Treasury Manager
Corporate Secretary
Due Diligence Officer
Relationship Manager
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