Loan Commission Agreement Template for Philippines

The Loan Commission Agreement is essential for financial institutions in the Philippines seeking to expand their loan business through commission-based agents or intermediaries. This document is typically used when a financial institution wants to formalize arrangements with individuals or companies who will refer potential borrowers in exchange for commission payments. The agreement must comply with Philippine banking regulations, including the New Central Bank Act and Truth in Lending Act, while also adhering to requirements under the Civil Code of the Philippines. It details commission structures, compliance requirements, operational procedures, and risk management measures. The document is particularly important given the increasing focus on financial inclusion in the Philippines and the growing role of intermediaries in the lending sector. It includes specific provisions for consumer protection, anti-money laundering compliance, and documentation requirements mandated by Philippine regulatory authorities.

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

2. Background: Context of the agreement, nature of the lending business, and purpose of the commission arrangement

3. Definitions: Key terms used throughout the agreement, including 'Loans', 'Commission', 'Borrowers', 'Successful Referral', etc.

4. Appointment and Scope: Terms of appointment of the commission agent and scope of authorized activities

5. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

6. Agent's Obligations: Specific duties, responsibilities, and performance requirements of the commission agent

7. Lender's Obligations: Responsibilities of the lender, including commission payments and provision of necessary information

8. Compliance Requirements: Obligations to comply with Philippine banking laws, anti-money laundering regulations, and other relevant legislation

9. Representations and Warranties: Standard declarations by both parties regarding their capacity, authority, and compliance

10. Confidentiality: Provisions protecting confidential information and trade secrets

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. General Provisions: Standard clauses including governing law, notices, amendments, and dispute resolution