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The Auto Loan Agreement serves as the primary legal instrument for vehicle financing transactions in the Philippines, structured to comply with local banking regulations, consumer protection laws, and vehicle registration requirements. This document is essential when a borrower seeks financing for vehicle purchase, whether new or used, and establishes the rights and obligations of both the lender and borrower. The agreement incorporates mandatory elements required by Philippine law, including truth in lending disclosures, security arrangements, and insurance requirements. It's designed to protect both the lender's security interest in the vehicle and the borrower's rights under Philippine consumer protection legislation, while providing clear terms for loan disbursement, repayment, and potential default scenarios.

1. Parties: Identifies the lender and borrower with complete details including name, address, and contact information

2. Background: Establishes the context of the agreement, including the borrower's request for financing and the lender's willingness to provide the loan

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Details: Specifies the principal amount, purpose, and key terms of the loan including interest rate and payment schedule

5. Vehicle Details: Describes the vehicle being financed including make, model, year, color, and vehicle identification number (VIN)

6. Interest and Fees: Details the interest rate, computation method, and all applicable fees and charges

7. Repayment Terms: Outlines the payment schedule, mode of payment, and consequences of early or late payment

8. Security and Collateral: Establishes the vehicle as collateral and details the security arrangements

9. Insurance Requirements: Specifies mandatory insurance coverage for the vehicle and any additional insurance requirements

10. Representations and Warranties: Contains declarations and assurances from the borrower regarding their capacity and authority to enter into the agreement

11. Events of Default: Lists circumstances that constitute default and the corresponding remedies available to the lender

12. Termination: Describes conditions and procedures for early termination of the agreement

13. General Provisions: Contains standard clauses including notices, amendments, governing law, and dispute resolution