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Financial Obligation Form
"I need a Financial Obligation Form under Philippine law for a secured business loan of 5 million PHP with quarterly payments over 3 years, starting March 2025, with collateral being manufacturing equipment and a personal guarantee from the company director."
1. Parties: Identification of the creditor and debtor with complete legal names, addresses, and tax identification numbers
2. Background: Brief context of the financial obligation, including the purpose of the debt or financial commitment
3. Definitions: Clear definitions of key terms used throughout the document
4. Principal Amount: Explicit statement of the principal amount of the financial obligation in both numbers and words
5. Interest Rate: Details of the applicable interest rate, including calculation method and frequency
6. Payment Terms: Schedule of payments, including due dates, installment amounts, and payment methods
7. Security: Details of any collateral or security provided for the obligation
8. Events of Default: Clear definition of what constitutes default and its consequences
9. Remedies: Rights and remedies available to the creditor in case of default
10. Representations and Warranties: Standard declarations by the debtor regarding their capacity and authority to enter into the obligation
11. Governing Law: Specification that Philippine law governs the agreement
12. Execution: Signature blocks and notarization requirements
1. Guarantor Details: Used when a third party guarantees the obligation, including guarantor's details and extent of liability
2. Prepayment Provisions: Include when early payment options are available, detailing any penalties or benefits
3. Insurance Requirements: Used when specific insurance coverage is required for the security or collateral
4. Assignment Clause: Include when either party may need to transfer their rights or obligations
5. Electronic Execution: Include when the document may be executed electronically under the E-Commerce Act
6. Force Majeure: Include when certain circumstances might affect the ability to fulfill the obligation
1. Payment Schedule: Detailed amortization table showing all payment dates, principal and interest breakdowns
2. Collateral Details: Comprehensive description and documentation of security or collateral
3. Proof of Income: Documentation of debtor's income sources and financial capacity
4. Required Permits: Copies of necessary permits or licenses if the obligation is for business purposes
5. Insurance Certificates: Copies of required insurance policies and certificates
6. Credit Assessment: Summary of credit evaluation and risk assessment
Authors
Banking and Financial Services
Real Estate
Manufacturing
Retail
Construction
Agriculture
Technology
Healthcare
Education
Small and Medium Enterprises
Import/Export
Professional Services
Legal
Finance
Compliance
Risk Management
Treasury
Credit Control
Collections
Corporate Secretariat
Business Development
Operations
Chief Financial Officer
Finance Manager
Credit Officer
Risk Manager
Legal Counsel
Compliance Officer
Loan Officer
Account Manager
Treasury Manager
Financial Controller
Credit Analyst
Collections Manager
Business Development Manager
Corporate Secretary
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