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Loss Share Agreement
"I need a Loss Share Agreement under Philippine law for a portfolio of non-performing loans worth PHP 500 million, where my bank will retain 20% of the losses and the acquiring asset management company will take 80%, with the agreement to be effective from March 1, 2025."
1. Parties: Identification of the parties entering into the loss share agreement
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Loss Sharing: Definition of covered losses and assets subject to the agreement
5. Loss Share Mechanism: Detailed explanation of how losses will be shared between parties
6. Calculation of Losses: Methodology for calculating and verifying losses
7. Claims Process: Procedures for making and processing loss share claims
8. Payment Terms: Timing and method of loss share payments
9. Representations and Warranties: Standard representations and warranties from each party
10. Reporting Requirements: Regular reporting obligations of the parties
11. Term and Termination: Duration of the agreement and termination provisions
12. Dispute Resolution: Procedures for resolving disputes between parties
13. Governing Law: Specification of Philippine law as governing law
14. General Provisions: Standard boilerplate provisions including notices, amendments, etc.
1. Regulatory Compliance: Specific provisions required when parties are regulated entities
2. Security and Collateral: Required when the agreement involves secured assets
3. Third Party Rights: Needed when the agreement affects rights of third parties
4. Insurance Requirements: Used when specific insurance coverage is required
5. Data Protection: Required when sharing of personal or sensitive data is involved
6. Anti-Money Laundering Provisions: Required for agreements involving financial institutions
7. Force Majeure: Optional provisions for unforeseen circumstances
8. Step-In Rights: Used when one party needs rights to take over certain operations
1. Schedule A - Covered Assets: Detailed list of assets covered by the loss share agreement
2. Schedule B - Loss Calculation Methodology: Detailed mathematical formulas and examples for loss calculations
3. Schedule C - Claims Documentation: Required documentation and forms for loss share claims
4. Schedule D - Reporting Templates: Standard templates for regular reporting requirements
5. Schedule E - Service Levels: Timeframes and performance standards for claims processing
6. Appendix 1 - Initial Asset Valuation: Baseline valuations of covered assets
7. Appendix 2 - Authorized Representatives: List of authorized representatives for each party
8. Appendix 3 - Compliance Requirements: Detailed regulatory and compliance requirements
Authors
Banking
Financial Services
Insurance
Asset Management
Real Estate
Infrastructure
Investment Management
Government & Public Sector
Corporate Finance
Debt Resolution
Legal
Risk Management
Finance
Compliance
Treasury
Credit Risk
Portfolio Management
Operations
Corporate Affairs
Regulatory Affairs
Investment
Asset Management
Due Diligence
Special Assets
Transaction Management
Chief Risk Officer
Chief Financial Officer
Legal Counsel
Compliance Officer
Risk Manager
Portfolio Manager
Asset Manager
Treasury Manager
Credit Risk Analyst
Financial Controller
Corporate Lawyer
Investment Manager
Operations Director
Due Diligence Specialist
Regulatory Compliance Manager
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