The Loan Commitment Agreement is a crucial document in Philippine commercial lending, establishing the framework for a lender's obligation to provide financing to a borrower. It serves as a binding commitment from the lender to make available a specified loan amount, subject to conditions precedent and ongoing requirements. This agreement type is particularly important in the Philippine context, where banking relationships and formal documentation are heavily regulated by the Bangko Sentral ng Pilipinas (Central Bank). The document typically precedes the actual loan agreement and provides certainty to borrowers regarding the availability of funding, while protecting lenders through carefully structured conditions and requirements. The agreement must comply with Philippine banking regulations, including interest rate restrictions, mandatory disclosures, and documentary stamp tax requirements.

1. Parties: Identification of the lender(s) and borrower(s) with their complete legal names, addresses, and registration details

2. Background: Context of the loan commitment, purpose, and brief description of the transaction structure

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. The Commitment: Details of the loan commitment, including amount, currency, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before the commitment becomes available

6. Utilization: Process and requirements for drawing down the loan commitment

7. Interest and Fees: Interest rate, commitment fees, arrangement fees, and calculation methods

8. Repayment and Prepayment: Terms for repayment and any voluntary or mandatory prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the commitment period

11. Events of Default: Circumstances that would allow the lender to cancel the commitment or accelerate any drawn amounts

12. Changes to Parties: Provisions regarding assignment, transfer, and participation rights

13. Administration: Administrative provisions including notices, calculations, and payment mechanics

14. Governing Law and Jurisdiction: Choice of Philippine law and jurisdiction provisions

15. Execution: Signature blocks and execution formalities