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Finance Agreement Template for Philippines

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Key Requirements PROMPT example:

Finance Agreement

"I need a Finance Agreement for a secured term loan of PHP 50 million to a manufacturing company, with quarterly repayments over 5 years starting March 2025, including specific covenants for maintaining certain financial ratios and environmental compliance requirements."

Document background
The Finance Agreement serves as the primary documentation for lending transactions in the Philippines, whether for corporate financing, project finance, or personal loans. It is essential for establishing legally binding financing arrangements that comply with Philippine banking regulations, including BSP requirements and the Truth in Lending Act. The document is typically used when a lender (usually a financial institution) provides funding to a borrower, and needs to document the terms of the facility, including amount, purpose, interest rates, repayment schedule, security (if any), and other key terms. The agreement must incorporate specific Philippine legal requirements regarding disclosure, consumer protection, and banking regulations, while also addressing practical aspects of the financing arrangement such as drawdown mechanics, covenants, and events of default.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement, including their legal status and addresses

2. Background: Sets out the context and purpose of the financing arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Facility: Details of the loan/credit facility, including amount, purpose, and availability

5. Interest and Fees: Specifies interest rates, calculation methods, and all applicable fees as required by Philippine Truth in Lending Act

6. Drawdown: Conditions and procedures for drawing down the facility

7. Repayment: Terms and schedule of repayment, including prepayment provisions

8. Representations and Warranties: Standard and Philippines-specific representations and warranties

9. Covenants: Positive and negative covenants, including compliance with Philippine laws

10. Events of Default: Circumstances constituting default and consequences

11. Changes to Parties: Rules for assignment and transfer of rights and obligations

12. Administration: Administrative provisions, notices, calculations

13. Governing Law and Jurisdiction: Confirms Philippine law as governing law and jurisdiction arrangements

Optional Sections

1. Security: Required if the facility is secured - details security arrangements and enforcement rights

2. Guarantee: Required if there are guarantors to the facility

3. Insurance: Required if specific insurance coverage is mandatory for the facility

4. Increased Costs and Tax Gross-up: Used in larger commercial financings to address regulatory and tax changes

5. Anti-Money Laundering Provisions: Detailed AML provisions for larger or cross-border transactions

6. Multi-currency Provisions: Required if the facility can be drawn in multiple currencies

7. Syndication Provisions: Required for syndicated facilities with multiple lenders

Suggested Schedules

1. Schedule 1 - Conditions Precedent: List of required documents and conditions to be satisfied before drawdown

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request drawdown of funds

3. Schedule 3 - Repayment Schedule: Detailed amortization or repayment schedule

4. Schedule 4 - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees as per Philippine regulations

5. Schedule 5 - Form of Transfer Certificate: Template for transferring rights and obligations under the agreement

6. Schedule 6 - Security Details: Details of any security assets and registration requirements under Philippine law

7. Schedule 7 - Contact Details: Contact information for all parties and designated representatives

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

































































Clauses

































Relevant Industries

Banking

Financial Services

Real Estate

Infrastructure

Manufacturing

Agriculture

Technology

Retail

Energy

Transportation

Healthcare

Education

Construction

Mining

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Finance

Credit

Operations

Corporate Secretariat

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Investment Officer

Corporate Secretary

Financial Controller

Banking Officer

Loan Officer

Chief Executive Officer

Chief Legal Officer

Risk Manager

Finance Manager

Corporate Finance Manager

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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