An attorney-in-fact is a person who is authorized to act on behalf of another person, known as the "principal." The agent is given the power to act on the principal's behalf by a legal document called a power of attorney. The power of attorney can be limited to specific tasks or general, like giving the agent broad authority to act on the principal's behalf.

In the context of loans, an attorney-in-fact may be appointed to handle a variety of tasks on behalf of the borrower, such as:

• Signing loan documents

• Communicating with the lender

• Making loan payments

• Taking other actions necessary to manage the loan

An attorney-in-fact can be any person the principal chooses, including a spouse, child, relative, friend, or lawyer. The principal should choose someone they trust and who will act in their best interests.

There are also some restrictions on the qualifications to be an attorney-in-fact in the Philippines, and these are as follows:

• Minors. Minors, or persons under 18, cannot be an attorney-in-fact.

• Persons with mental disabilities. Persons who are interdicted or who have been declared incapacitated by a court cannot be an attorney-in-fact.

• Persons who have been convicted of certain crimes. Persons convicted of certain crimes, such as theft, fraud, or embezzlement, cannot be an attorney-in-fact.

• Persons who are employees of the principal. Employees of the principal cannot be an attorney-in-fact for transactions that involve the principal's property.