Document background
The Term Facility Agreement is a crucial document used in Philippine corporate lending transactions when a borrower requires fixed-term financing for specific purposes such as capital expenditure, expansion, or refinancing. This agreement type is extensively regulated under Philippine law, requiring compliance with the New Central Bank Act, General Banking Law, and BSP regulations. It contains detailed provisions covering the facility amount, drawdown mechanics, interest calculations, repayment terms, security arrangements, and events of default. The document is particularly important in the Philippine context as it must incorporate local legal requirements while potentially accommodating international banking practices, especially in cross-border transactions. The Term Facility Agreement serves as the primary document governing the lending relationship throughout the facility's lifetime, typically ranging from 1 to 10 years depending on the purpose and nature of the financing.
