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The Staff Loan Agreement is a crucial document used in the Philippine business environment when employers offer financial assistance to their employees through formal loan arrangements. This document is essential for companies that provide employee loan programs as part of their benefits package, ensuring compliance with Philippine labor laws, banking regulations, and the Civil Code. The agreement typically includes specific provisions for loan amount, interest calculations, salary deduction authorizations, and repayment terms, while addressing scenarios such as employment termination or default. It must incorporate mandatory disclosures required by the Truth in Lending Act and consider data privacy requirements under Philippine law. The Staff Loan Agreement serves to protect both employer and employee interests by clearly documenting the terms of the financial arrangement and ensuring transparency in the lending process.

1. Parties: Identifies the employer (as lender) and the employee (as borrower), including their complete legal names and addresses

2. Background: Sets out the context of the loan agreement, confirming the employment relationship and the purpose of the loan

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended purpose

5. Interest Rate: Details the applicable interest rate, calculation method, and compliance with Philippine usury laws

6. Term and Repayment: Specifies the loan duration and repayment schedule, including salary deduction arrangements

7. Salary Deduction Authorization: Employee's formal authorization for the employer to make regular deductions from salary for loan repayment

8. Early Repayment: Terms and conditions for early loan repayment, including any applicable penalties or benefits

9. Default Provisions: Consequences of default, including acceleration of repayment

10. Representations and Warranties: Employee's confirmations regarding their capacity to enter into the agreement and accuracy of provided information

11. Termination of Employment: Provisions dealing with loan repayment in case of employment termination

12. Governing Law: Confirms Philippine law as governing law and jurisdiction

13. Execution: Signature blocks and execution requirements