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MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This agreement is made and entered by and between:

_________________________, of legal age, Filipino, with address at _______________


_______________________________, now and hereinafter called as the “Property Owner”.

And

_________________________, of legal age, Filipino, with address at _______________


_______________________________, now and hereinafter called as the “Credit Provider
(Borrower)”.

Who hereby stipulate, agree and bind themselves upon these terms and conditionatlities.

1. On the part of the Property Owner:


(a.) That he is the lawful and registered owner of a valuable real estate property as
evidenced by TCT No. _________, issued by the Registry of Deeds of _____
__________, with an area of ____________ sq. m., more or less, situated at
_________________________________________.
(b.) That the abovementioned property is clean and presently free from all and
any encumbrances;
(c.) That the whole area of land is a ____________________ property presently
non-tenanted, as evidenced by its Property Record Form.
2. On the part of the Credit Provider:
(a.) That the Credit Provider is a registered business entity doing profitable
business under ______________________, and being represented by its
_____________________, ____________________________________;
(b.) That the Credit Provider, by providential incidents and circumstances, is
approached by the Property Owner, who offered to have their property as a
collateral for a Credit Facility applied by the Credit Provider with _________
_______________________, with conditions stipulated in this agreement;
(c.) That the Credit Provider accepts the offer of the Property Owner.
3. Common and mutual terms and conditionalities, following:
(a.) That the PARTIES herein mutually agreed to enter into a loan transaction with
__________________________________________, a financing institution
with business address at
______________________________________________, in the amount of
_______________________________ (Php __________________);
(b.) That the PARTIES herein undertake to secure the abovementioned credit
application by a registered Real Estate Mortgage over Transfer Certificate of
Title (TCT) No. __________________, of a certain property located at _____
_________________________________________, registered in the name of
_________________________________________, with an area of ________
_______________________________ (____________) sq. meters.
(c.) That the PARTIES herein are aware that the availability of the Credit Facility
to be extended by ________________________________________________
to both parties is dependent on the registration of mortgage over the said
property;
(d.) That the Credit Facility that will be extended by _______________________
will also be secured by post dated checks to cover monthly amortization for
the full term of the loan;

Now, therefore, for in and consideration of the foregoing promises and the mutual covenants
hereinafter, both parties herein mutually agrees as follows;

1. That both PARTIES shall be mutually liable in the above mentioned _____________
_______________________ (P__________) Credit Facility to be extended by _____
_________________________________________________;
2. That both PARTIES will sign in all loan documents pertinent to the abovementioned
Credit Facility with ________________________, and hereby acknowledges, agreed
and accepts, all the terms and conditions of the financing institution as stipulated in
all the loan documents/contracts;
3. That the ____________________________ (P ___________) Credit Facility to be
granted by ________________________________________ is scheduled as a five
years term loan with the interest and principle payable in a monthly basis for five
years;
4. That prior to release of the loan proceeds, both PARTIES herein mutually agreed to
open a joint account with _______________________________________________,
Branch, with Current Account No. _______________, and have the full loan proceeds
with _________________________________ be credited to the abovementioned
joint account opened with __________________________________
___________________________________;
5. That both PARTIES agreed that the joint account opened with __________________
____________________ will be used solely to issue the required post dated checks
representing monthly amortization for the full term of the loan with ______________
___________________ and to pay other fees and services charges pertinent to the
above mentioned Credit Facility;
6. That both PARTIES herein decided to divide the loan proceeds as follows:
Property Owner P ___________________
Credit Provider P ___________________
of which, __________________ (________%) of the Credit Facility will be received
by the Property Owner, and __________________ (________%) of the Credit
Facility will be received by the Credit Provider;
7. That all fees and expenses relative to the registration of mortgage with ___________
________________________, such as Registration Fees with the Registry of Deeds,
Documentary Stamp Tax for REM, Documentary Stamp Tax for Promissory Note,
Mortgage Redemption Insurance, Processing Fees, etc., shall be equally shouldered
and paid for by both PARTIES herein;
8. That from the net loan proceeds that will be credited to ________________________
Account No. ________________, both PARTIES herein agreed to leave the total
amount of ___________________________ (Php _____________), which represents
both PARTIES first twelve months amortization for the loan, of which, ___________
________________________________________ (Php ________________), will be
deducted from the net loan proceeds of the Property Owner, and _________________
____________________, (PHP______________), will be deducted from the net loan
proceeds of the Credit Provider;
9. That the Property Owner commits themselves to religiously deposit in the
abovementioned joint account with ___________________ every _________ day of
the month, starting ______________ until __________________, the amount of
__________________________________ (PHP _____________), which an amount
equivalent to loan which represents the Property Owner’s payment of their obligation
for the loan amount they received. In the event that the Property Owner fails to
deposit their monthly payment as scheduled, resulting of the return of the check that
both PARTIES issued to ________________________________, the Property Owner
is solely liable for whatever penalties, service charges, and other charges that will be
required by the bank to update and clear all obligations for the loan facility, until fully
paid and updated;
10. That the Credit Provider also commits themselves to religiously deposit in the
abovementioned joint account with ____________________ every _______ day of
the month, starting __________________ until ___________, the amount of, ______
_______________________ (PHP ______________), which amount equivalent to
________________________ (____ %) of the required monthly amortization of their
loan which represents the Credit Provider’s payment for their obligation for the
amount they received. In the event that the Credit Provider fails to deposit their
monthly payment as scheduled, resulting to return of the check that both PARTIES
issued to________________________________, the Credit Provider is solely liable
for whatever penalties, service charges, and other charges that will be required by the
bank to update and clear all obligations for the loan facility, until fully paid and
updated;
11. That should the Property Owner fail to deposit their share of the monthly
amortization as scheduled; resulting to a past due loan account with ______________
____________________________________ the Property Owner becomes solely
liable for the penalties and other charges that will be required by the Financing
Institution until the loan account is updated.
12. That in the event that the Property Owner fails to update the loan account resulting to
demand for foreclosure of the offered collateral, which is registered under the name
of the Credit Provider, the Property Owner hereby acknowledges that the offered
collateral will be subject to foreclosure by the bank. In such event, the Credit Provider
has the option to have the property be foreclosed by the bank, or to pay for the
existing loan obligation with the bank. If the Credit Provider decided to have the
property be foreclosed by the bank, the Property Owner has still the option to redeem
the collateral from the bank for a period of one year. However, if the Credit Provider
decided to continue to pay for all the unpaid loan obligation with the bank, the
Property Owner hereby forever waives any rights over the aforesaid property and that
the full recovery and occupancy over the said property will be for the Credit Provider;
13. That in the event that the Property Owner fails to update the loan account resulting to
demand for foreclosure of the offered collateral, which is owned and registered under
their name, the Property Owner hereby acknowledges that the offered collateral is the
default of payment of the Property Owner, the Credit Provider has the option to have
the property to be foreclosed by the bank, or to pay for the existing loan obligation
with the bank until fully settled, or to sell the property to pay the existing loan
obligation with the bank.
a. If the Credit Provider decided to have the property be foreclosed by the bank,
the Property Owner still has the option to redeem collateral from the bank for
a period of one year, however, the Property Owner hereby frees the Credit
Provider from any liabilities either with the bank or from the Property Owner
for reason that the default of payment was made by the Property Owner.
b. Should the Credit Provider decided to continue their payment, and fully pay
the entire loan obligation with _________________________ the Property
Owner hereby agrees to execute and carry out the Open Deed of Absolute Sale
in favor of the Credit Provider, earlier signed by the parties herein. In such
event, the Property Owner hereby waives any rights over the aforesaid
property and that the full recovery and occupancy over the said property will
be for the Credit Provider;
14. That likewise, should the Credit Provider fails to deposit their share of the monthly
amortization as scheduled, resulting to a past due loan account with ______________
________________________________, the Credit Provider become solely liable for
the penalties and other charges that will be required by the financing institution until
the loan account is updated;
15. That in the event that the Credit Provider fails to update the loan account resulting to
demand for foreclosure of the offered collateral, which is owned and registered in the
name of the Property Owner, the Credit Provider hereby agrees to execute and carry
out the Deed of Assignment earlier signed by both PARTIES herein, to give and
assign to the Property Owner a stock holder’s share with _______________________
_____________________ equivalent to the total of the outstanding balance of the
Credit Provider with their unpaid loan obligation with _________________________
plus interests, and penalties, imposed by the bank and other charges based on
prevailing domestic bank rate;
16. That both PARTIES agreed that the subject collateral is still open for selling provided
that the would-be Buyer should first settle the existing Real Estate Mortgage with
_______________________________. Proceeds of the sale would be paid to the
Property Owner. Should the property be sold and after full settlement with ________
________________________, both PARTIES herein agreed that settlement for the
unpaid loan amount of the Credit Provider to the Property Owner will be made on a
monthly basis for a period of three years, without interest;
17. That the Open Deed of Assignment and the Open Deed of Absolute Sale earlier
signed by both PARTIES herein can only be made valid and executed if any of the
considerations contained herein are violated;
18. That the PARTIES herein have offered their dedication and support amiably and
discreetly during the processing of the loan application;
19. That after the loan has been fully paid by both PARTIES, this agreement will
terminated and will be considered null and void;
20. That any PARTY who will violate any of the considerations contained in this
agreement will be held legally and criminally liable;
21. That any, and all, part of this agreement shall be deemed private and confidential by
both PARTIES herein, and should not be disclosed to anybody, specifically to any
personnel, staff, or officers of the bank and Financing Institution;
22. That no modification, alteration or amendments to this undertaking shall be made
valid if not made in writing and duly signed by both PARTIES herein;
23. That this agreement is made and executed by both PARTIES herein willingly and
voluntarily.
IN WITNESS WHEREOF we have hereunto affixed our signatures this _______ day of _______
__________ 2008 at __________________, Philippines.

_________________________ _________________________
PROPERTY OWNER CREDIT PROVIDER

CTC No.: ________________ CTC No.: ________________


Issued at: _______________ Issued at: _______________
Issued on: _______________ Issued on: _______________

SIGNED IN THE PRESENCE OF:

_________________________ _________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES ) S.S.


______________________________)

Known to me and to me to be known that the above persons appeared before me


and acknowledge to me to be their same act and deed consisting of six (6) pages including this
page, executed this ______________ day of ____________ 2008 at Quezon City.

Doc. No. _____________


Page No. _____________ NOTARY PUBLIC
Book No. ____________
Series of 2008

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