Forward Flow Agreement for Philippines

Forward Flow Agreement Template for Philippines

A comprehensive agreement governed by Philippine law that establishes a framework for the recurring sale and purchase of debt portfolios between financial institutions. The document outlines the mechanisms for periodic transfers of accounts, pricing methodologies, operational procedures, and compliance requirements under Philippine banking and financial regulations. It includes detailed provisions for data protection under the Philippine Data Privacy Act, consumer protection measures, and specific requirements for debt trading in the Philippine market.

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What is a Forward Flow Agreement?

The Forward Flow Agreement is a specialized contract used when a financial institution plans to sell multiple portfolios of debt or receivables to a purchaser over time. This document is particularly relevant in the Philippine market where banks and financial institutions regularly optimize their balance sheets through debt sales. It establishes a master framework for recurring sales, detailing eligibility criteria, pricing mechanisms, and operational procedures while ensuring compliance with Philippine banking regulations, the Data Privacy Act, and consumer protection laws. The agreement typically includes comprehensive provisions for account transfers, data handling, regulatory compliance, and ongoing operational requirements, making it essential for structured debt sales programs in the Philippines.

What sections should be included in a Forward Flow Agreement?

1. Parties: Identification of the seller and buyer entities, including registration details and addresses

2. Background: Context of the agreement, nature of the debt portfolios, and general commercial intent

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and references to Philippine law

4. Sale and Purchase Structure: Framework for recurring sales, eligibility criteria, and transfer mechanics

5. Price and Payment Terms: Pricing methodology, payment procedures, and timing of payments

6. Transfer Mechanics: Procedures for periodic transfers, documentation requirements, and delivery of information

7. Eligibility Criteria: Specific requirements for accounts to be included in each transfer

8. Representations and Warranties: Standard and specific warranties regarding the debt portfolios and compliance with Philippine law

9. Servicing Arrangements: Post-transfer servicing responsibilities and transition provisions

10. Data Protection and Confidentiality: Compliance with Philippine Data Privacy Act and confidentiality obligations

11. Regulatory Compliance: Compliance with Philippine banking, consumer protection, and other relevant regulations

12. Termination: Termination events, procedures, and consequences

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and governing law

What sections are optional to include in a Forward Flow Agreement?

1. Put-Back Provisions: Optional section for circumstances where accounts can be returned to the seller - include if specifically requested

2. Interim Servicing: Include if the seller will continue servicing for a transition period

3. Third Party Rights: Include if other parties have rights under the agreement

4. Marketing and Communications: Include if there are specific requirements for customer communications

5. Service Level Requirements: Include if specific performance metrics are required for ongoing operations

6. Security Arrangements: Include if any security or collateral is required

7. Anti-Money Laundering: Detailed AML provisions - include for high-risk portfolios

What schedules should be included in a Forward Flow Agreement?

1. Schedule 1 - Eligibility Criteria: Detailed list of account eligibility requirements

2. Schedule 2 - Transfer Notice Template: Form of notice for each periodic transfer

3. Schedule 3 - Pricing Schedule: Detailed pricing methodology and calculations

4. Schedule 4 - Data Fields: List of required data fields for account transfers

5. Schedule 5 - Transfer Procedures: Detailed operational procedures for transfers

6. Schedule 6 - Form of Assignment: Template documentation for individual transfers

7. Schedule 7 - Reporting Requirements: Templates and timing for required reports

8. Appendix A - Initial Portfolio Summary: Description of the initial expected portfolio characteristics

9. Appendix B - Power of Attorney: Standard POA format for Philippine requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

Financial Services

Debt Collection

Credit Management

Consumer Finance

Asset Management

Investment Management

Debt Trading

Consumer Credit

Relevant Teams

Legal

Finance

Operations

Risk Management

Compliance

Data Protection

Treasury

Collections

Portfolio Management

Credit Management

Deal Management

Investment

Client Relations

Relevant Roles

Chief Financial Officer

Head of Collections

Legal Counsel

Compliance Officer

Portfolio Manager

Risk Manager

Operations Director

Credit Manager

Data Protection Officer

Treasury Manager

Debt Trading Manager

Account Relationship Manager

Chief Risk Officer

Head of Finance

Investment 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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