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Trade Finance Agreement for Philippines

Trade Finance Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions for trade finance facilities between a financial institution and a borrower. The document outlines the specific trade finance products available, facility limits, security arrangements, utilization procedures, and repayment terms. It incorporates requirements under Philippine banking regulations, including BSP circulars, and addresses both domestic and international trade financing needs while ensuring compliance with local foreign exchange rules and anti-money laundering regulations.

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Trade Finance Agreement

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What is a Trade Finance Agreement?

The Trade Finance Agreement serves as the primary documentation for establishing trade finance facilities in the Philippines, enabling businesses to access various trade finance products such as letters of credit, trust receipts, and export financing. This document is essential when a company requires financing for its international trade operations, working capital for import/export activities, or other trade-related funding needs. The agreement must comply with Philippine banking regulations, particularly those issued by the Bangko Sentral ng Pilipinas (BSP), and includes provisions for security arrangements, facility utilization, and regulatory compliance. It's typically used by companies engaged in international trade, manufacturing, or distribution that require structured financing for their trade operations. The agreement can be tailored to accommodate various trade finance products and can include both funded and non-funded facilities.

What sections should be included in a Trade Finance Agreement?

1. Parties: Identification of all parties to the agreement including the financial institution, borrower, and any guarantors

2. Background: Context of the agreement, relationship between parties, and purpose of the trade finance facility

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

4. Facility Terms: Details of the trade finance facility including type, amount, purpose, and availability period

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

6. Utilization: Procedures and requirements for drawing down the facility

7. Interest and Fees: Interest rates, calculation methods, fees, and charges applicable to the facility

8. Repayment Terms: Repayment schedule, method, and currency of payments

9. Security Arrangements: Details of collateral, guarantees, or other security provided

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

11. Covenants: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances that constitute default and consequent remedies

13. Changes to Parties: Rules regarding assignment, transfer, and delegation of rights and obligations

14. Notices: Communication procedures and contact details

15. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction for disputes

What sections are optional to include in a Trade Finance Agreement?

1. Trade-Specific Terms: Include when specific trade instruments (like letters of credit or bank guarantees) are part of the facility

2. Currency and Exchange Provisions: Required for multi-currency facilities or cross-border transactions

3. Insurance Requirements: Include when specific insurance coverage is required for the traded goods

4. Documentary Requirements: Add when specific trade documentation procedures need detailed coverage

5. Syndication Provisions: Include for syndicated trade finance facilities with multiple lenders

6. Islamic Finance Provisions: Required when the facility needs to comply with Islamic banking principles

7. Environmental and Social Requirements: Include when environmental or social compliance is required by the lender

What schedules should be included in a Trade Finance Agreement?

1. Schedule 1 - Facility Limits and Sublimits: Detailed breakdown of facility limits and any sublimits by product type

2. Schedule 2 - Fees and Charges: Comprehensive list of all applicable fees, charges, and commission rates

3. Schedule 3 - Condition Precedent Documents: List of required documents to be provided before facility utilization

4. Schedule 4 - Form of Utilization Request: Standard form for requesting utilization of the facility

5. Schedule 5 - Security Documents: List and copies of all security documents

6. Schedule 6 - Trade Finance Products: Detailed terms for specific trade finance products available under the facility

7. Appendix A - Compliance Certificates: Standard forms for periodic compliance certification

8. Appendix B - Pricing Schedule: Detailed pricing matrix based on facility type and tenure

9. Appendix C - Documentary Requirements: Checklist of required trade documents for each type of facility

Authors

Alex Denne

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

Jurisdiction

Philippines

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions










Clauses



































Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Wholesale Distribution

Retail

Agriculture

Commodities Trading

Logistics and Supply Chain

Shipping and Maritime

Relevant Teams

Legal

Finance

Treasury

Trade Operations

Risk Management

Compliance

Credit

International Banking

Corporate Banking

Documentary Credits

Trade Services

Relevant Roles

Chief Financial Officer

Treasury Manager

Trade Finance Manager

Finance Director

Corporate Banking Officer

Trade Operations Manager

Credit Risk Manager

Relationship Manager

Legal Counsel

Compliance Officer

Import/Export Manager

Supply Chain Manager

Financial Controller

Documentary Credits Specialist

Trade Finance Operations Officer

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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