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Master Asset Finance Agreement for Philippines

Master Asset Finance Agreement Template for Philippines

A comprehensive financing agreement governed by Philippine law that establishes the framework for multiple asset-based financing transactions between a financier and a borrower. The agreement sets out the terms and conditions for the financing facility, including drawdown mechanisms, security arrangements, representations and warranties, and covenant packages, all compliant with Philippine financial regulations and the Civil Code. It incorporates specific requirements under Philippine secured transactions law and relevant Bangko Sentral ng Pilipinas regulations, while providing flexibility for financing various types of assets through individual drawdowns under the master facility.

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Master Asset Finance Agreement

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What is a Master Asset Finance Agreement?

The Master Asset Finance Agreement serves as an umbrella agreement for companies seeking to establish a long-term financing relationship for multiple asset acquisitions in the Philippines. This document is typically used when a business requires regular financing for equipment, vehicles, or other assets, and wants to avoid negotiating separate agreements for each transaction. The agreement complies with Philippine banking and finance regulations, including requirements under the Financing Company Act and Personal Property Security Act. It provides a comprehensive framework covering facility terms, security arrangements, conditions precedent, and operational mechanics, while allowing flexibility for individual transactions through drawdown notices. The Master Asset Finance Agreement is particularly useful for businesses with ongoing asset financing needs, as it streamlines the documentation process and establishes consistent terms across multiple transactions.

What sections should be included in a Master Asset Finance Agreement?

1. Parties: Identification of the finance provider and the customer/borrower

2. Background: Context of the agreement and relationship between parties

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. Facility: Details of the master facility including total facility limit and purpose

5. Conditions Precedent: Conditions that must be satisfied before any utilization

6. Drawdown Mechanics: Procedures and requirements for requesting and obtaining financing under the facility

7. Asset Purchase and Ownership: Terms governing the purchase, ownership, and title of financed assets

8. Payment Terms: Payment obligations, including principal, interest, fees, and payment mechanics

9. Security: Security arrangements and collateral requirements

10. Representations and Warranties: Standard and specific representations and warranties from the borrower

11. Covenants: Positive and negative undertakings of the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Enforcement and Remedies: Rights and remedies upon default

14. Indemnities: Indemnification obligations of the parties

15. Costs and Expenses: Allocation of costs, expenses, and taxes

16. Assignment and Transfer: Rights and restrictions regarding assignment and transfer of rights/obligations

17. Notices: Communication procedures and contact details

18. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction provisions

19. Execution: Signature blocks and execution formalities

What sections are optional to include in a Master Asset Finance Agreement?

1. Insurance: Detailed insurance requirements for assets - include if insurance is not covered in a separate schedule

2. Tax Gross-Up: Provisions for tax gross-up payments - include if relevant to the tax structure

3. Currency Provisions: Include if financing may be provided in multiple currencies

4. Agency Provisions: Include if multiple lenders are contemplated

5. Electronic Execution: Include if electronic signing is permitted

6. Force Majeure: Include if specific force majeure provisions are required beyond standard impossibility of performance

7. Anti-Money Laundering: Detailed AML provisions - include if not covered in representations and warranties

8. Data Protection: Include if detailed data protection provisions are required beyond standard confidentiality

What schedules should be included in a Master Asset Finance Agreement?

1. Schedule 1 - Form of Drawdown Notice: Standard form for requesting utilization of the facility

2. Schedule 2 - Conditions Precedent Documents: List of required documents and conditions

3. Schedule 3 - Asset Schedule: Template for describing assets to be financed

4. Schedule 4 - Repayment Schedule: Template for payment schedules

5. Schedule 5 - Pricing and Fees: Details of interest rates, fees, and other charges

6. Schedule 6 - Security Documents: Forms of security documents and guarantees

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements for assets

8. Schedule 8 - Form of Compliance Certificate: Template for periodic compliance certification

9. Appendix A - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

10. Appendix B - Asset Maintenance Requirements: Specifications for asset maintenance and servicing

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

抖阴视频

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions





























































































Clauses














































Relevant Industries

Manufacturing

Transportation

Construction

Agriculture

Mining

Technology

Healthcare

Real Estate

Energy

Telecommunications

Retail

Logistics

Aviation

Maritime

Industrial Equipment

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Operations

Procurement

Commercial

Business Development

Contract Management

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Asset Finance Manager

Commercial Director

Operations Director

Procurement Manager

Financial Controller

Corporate Finance Manager

Business Development Manager

Contract Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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