Framework Loan Agreement Template for Philippines

The Framework Loan Agreement is essential for establishing ongoing lending relationships in the Philippine market, particularly suitable for businesses requiring regular access to financing. This document type is commonly used when a borrower needs flexible access to funds over time, rather than a single loan disbursement. The agreement must comply with Philippine banking regulations, including the New Central Bank Act and Truth in Lending Act, while incorporating international best practices in lending. It typically includes comprehensive provisions for drawdown mechanics, interest calculation, security arrangements, and compliance requirements. The framework structure is particularly valuable for projects with phased funding requirements or companies with recurring capital needs, as it streamlines the lending process by pre-agreeing terms for multiple future loans.

1. Parties: Identification of the lender and borrower, including their complete legal names, addresses, and registration details

2. Background: Context of the framework agreement, relationship between parties, and general purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the total facility amount, purpose, and nature of the framework arrangement

5. Drawdown Mechanics: Procedures and conditions for requesting and making individual loans under the framework

6. Interest and Fees: Interest calculation methodology, applicable rates, fees, and charges

7. Repayment Terms: General repayment provisions applicable to all loans under the framework

8. Conditions Precedent: Conditions that must be satisfied before initial utilization and subsequent drawdowns

9. Representations and Warranties: Standard and specific representations made by the borrower

10. Covenants: Positive and negative undertakings of the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Rules regarding assignment, transfer, and novation

13. Administration: Operational aspects of the facility including notices and calculations

14. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction provisions

15. Execution: Signature blocks and execution formalities