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The Car Mortgage Agreement is essential in vehicle financing transactions in the Philippines, where the vehicle serves as collateral for the loan. This document is typically used when an individual or business seeks financing to purchase a vehicle but requires a loan to complete the purchase. The agreement protects the lender's interests by creating a security interest in the vehicle while allowing the borrower to use the vehicle subject to specific terms and conditions. The document must comply with Philippine legislation, including the Civil Code, Truth in Lending Act, and relevant banking regulations. It includes critical information such as vehicle specifications, loan amount, interest rates, payment terms, insurance requirements, default provisions, and enforcement mechanisms. The agreement becomes particularly important in cases of default, as it provides the legal basis for the lender to repossess and dispose of the vehicle to recover the outstanding debt.

1. Parties: Identification of the Mortgagor (borrower/vehicle owner) and Mortgagee (lender), including complete legal names, addresses, and contact details

2. Background: Brief context of the transaction, including the vehicle purchase and the need for financing

3. Definitions: Key terms used throughout the agreement including but not limited to 'Vehicle', 'Mortgage Amount', 'Interest Rate', 'Payment Terms', 'Default', 'Security'

4. The Vehicle: Detailed description of the mortgaged vehicle including make, model, year, color, engine/chassis numbers, plate number, and registration details

5. Loan Terms: Specific details of the loan including principal amount, interest rate, payment schedule, and total amount payable

6. Security and Title: Provisions regarding the vehicle as security, retention of title, and registration of the mortgage with relevant authorities

7. Mortgagor's Obligations: Responsibilities of the borrower including maintenance, insurance, usage restrictions, and payment obligations

8. Insurance: Requirements for comprehensive vehicle insurance, naming of loss payee, and handling of insurance claims

9. Events of Default: Circumstances constituting default and the consequences thereof

10. Enforcement Rights: Mortgagee's rights upon default including repossession and sale procedures

11. Representations and Warranties: Statements of fact and promises made by the Mortgagor regarding their capacity, the vehicle's condition, and ownership

12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution