Document background
The Term Loan Credit Agreement serves as the primary documentation for term loan facilities in the Philippines, structured to comply with local banking regulations and financial laws. This document is typically used when a borrower requires fixed-term financing for specific purposes such as capital expenditure, business expansion, or project financing. The agreement encompasses all essential elements required under Philippine law, including loan terms, security arrangements, representations, covenants, and enforcement mechanisms. It must align with the General Banking Law of 2000, Truth in Lending Act, and relevant BSP regulations. The document is particularly important for establishing clear rights and obligations of parties, ensuring enforceability, and providing adequate protection for lenders while maintaining fairness to borrowers in accordance with Philippine legal requirements.
