Republic of the Philippines REGIONAL TRIAL COURT Fourth Judicial Region Branch 37 Puerto Princesa City

PERMANENT SAVINGS and LOAN BANK Plaintiff, - versus -

CIVIL CASE NO. 140608,

For: COLLECTION OF SUM OF MONEY

MARIANO VELARDE, Defendant. x----------------------------------------------x

JUDICIAL AFFIDAVIT OF WITNESS CARLOS JASON A. ABALLA I, CARLOS JASON A. ABALLA, of legal age, married, and living at Puerto Princesa City, a witness for the plaintiff in this case, state under oath as follows: PRELIMINARY STATEMENT The person examining me is Atty. FRANCIS RAINIER B. UMALI with office address at Peneyra Road, San Pedro, Puerto Princesa City, Palawan. The examination is being held at the same address. I am answering his questions fully conscious that I do so under oath and may face criminal liability for false testimony and perjury. PURPOSE: This Judicial Affidavit of the witness CARLOS JASON ABALLA is being offered as evidence for the Plaintiff to prove the following: 1. That the respondent has executed a promissory note evidencing a loan of One Million Pesos from the plaintiff; 2. That he had received the said amount according to the banks Loan Release Sheet. 3. That the respondent failed to pay the loaned amount even after a demand by the bank has been made.

1. Q: A:

Please state your name and other personal circumstances for the record. I am Carlos Jason A. Aballa, 28 years old, single, and a resident of Barangay San Pedro, Puerto Princesa City. Are you the same Carlos Jason A. Aballa plaintiff in this case? who is named as a witness for the

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Yes sir. What is your occupation, Mr. Aballa? I am currently the Assistant Department Manager of the Philippine Deposit Insurance Corporation. How were you connected to the Permanent Savings and Loan Bank? I was assigned as the banks Deputy Liquidator. When did you serve as the banks Deputy Liquidator? I served from 2010 to present. What were your duties as the banks Deputy Liquidator? I was tasked to determine the assets of the bank and collect the remaining obligations owed to it. What obligations have you encountered during your tenure that might be pertinent to this case? One of the obligations that I encountered was Mariano Velardes loan from the bank amounting to one million pesos. What proof of Mr. Velardes loan did you find? A promissory note and a loan release sheet that contains Mr. Velardes name and signature. When was the promissory note dated? It was dated September 28, 2008, sir.

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What were the contents of the note? It stated in summary that Mr. Velarde borrowed One Million Pesos (Php 1,000,000.00) from the Permanent Savings and Loan Bank and promised to pay the amount on or before October 13, 2008. Who signed the note? It was signed by Mr. Mariano Velarde, sir. How did you know that it was Mr. Velarde who signed the note? The signature was placed above Mr. Velardes printed name. If I will show a document, will you be able to identify it? Yes, sir.

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(Showing the promissory note to the witness)What is this document, Mr. witness? This is the same promissory note I mentioned earlier. I am marking this Promissory Note as Exhibit A and I am attaching Exhibit A to your Judicial affidavit, do you confirm my action? Yes sir. I am marking the signature on this promissory note above the name Mariano Velarde as Exhibit A-1, do you confirm my action? Yes Sir .

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You mentioned a loan release sheet, what does it show? It shows that Mr. Velarde received the amount of one million pesos as loan from the bank. When was the loan release sheet dated? It was dated September 28, 2008. What does that date mean? It means that Mr. Velarde received the amount of the loan on the same day he executed the promissory note. How you were able to identify that Mr. Velarde himself received the amount? He signed on the Loan Release Sheet with his printed name and signature. What was the appearance of the signature in the Loan Release Sheet as compared to the signature in the promissory note? It is exactly the same signature sir. If I show you another document, will you be able to identify it? Yes, sir.

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(Showing the document) What can you say about this document? It is the Loan Release Sheet that I am referring to, sir. I am marking this Loan Release Sheet as Exhibit B and the signature above the name Mariano Velarde as Exhibit B-1 and attaching it to your Judicial Affidavit, do you confirm my action?

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Yes Sir.

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What happened when the due date for the payment of the loan arrived? Nothing. Mr. Velarde did not pay the amount contrary to what he . What made you say that? There was nothing in the records of the bank that Mr. Velarde paid or even offered to pay the loan. When you took over the assets of the bank as Deputy Liquidator, what did you do to collect Mr. Velardes loan? I sent him in behalf of the bank a demand letter for the payment of the loan. How was the letter sent? I sent the demand letter through the LBC. When was the letter dated and sent? It was dated on July 27, 2011, and I sent it the same day sir. How did you confirm whether Mr. Velarde received the demand letter? I checked with the LBC and they showed me their receipt records which was signed by Mr. Velarde himself.

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How did you know that it was Mr. Velarde who received the demand letter? The signature in LBCs receipt records was the same as the one that was affixed in the Promissory Note and the Loan Release Sheet. What date did Mr. Velarde receive the demand letter according to the LBC records? It was received in July 29. 2011, sir. What happened from that date of receipt of the demand letter up to the point that this complaint was filed? Nothing. Mr. Velarde still did not make any effort to pay the loan. What is the status of Mr. Velardes obligation as of this moment? The loan remains unpaid, sir.

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IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of October, 2013 here in the City of Puerto Princesa. CARLOS A. ABALLA Affiant

SUBSCRIBED AND SWORN TO BEFORE ME, a notary public in and for the City of Puerto Princesa and the Province of Palawan this 17th day of October 2013. Affiant personally came and appeared with PRC License ID No. 0020419 issued by the Professional Regulation Commission on March 18, 1995 and valid until May 1, 2014 at the City of Manila, bearing his photograph and signature, known to me as the same person who personally signed the foregoing instrument before me and avowed under penalty of law to the whole truth of the contents of said instrument.

ATTY. JOSEPH JOJO D. DAJAY Notary Public Puerto Princesa City, Palawan Roll No, ________________________ IBP Roll No. _____________________ PTR No. ________________________ MCLE Compliance Cert. No._________ Doc. No. __________ Page No. _________ Book No. _________ Series 2013

ATTESTATION I, FRANCIS RAINIER B.UMALI of legal age, Filipino, single, with office address at Peneyra Road, Puerto Princesa City, on oath depose and state that: 1. I was the lawyer who conducted the examination of the witness CARLOS JASON ABALLA at my aforementioned office in Puerto Princesa City; 2. I have faithfully recorded or caused to be recorded the questions I asked and the corresponding answer that the witness gave; 3. I nor any other person then present or assisting her coached the witness regarding her answers; IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of October 2013 at the City of Puerto Princesa.

ATTY. FRANCIS RAINER B. UMALI

SUBSCRIBED AND SWORN TO BEFORE ME, a notary public in and for the City of Puerto Princesa and the Province of Palawan this 17th day of October 2013. Affiant personally came and appeared with Professional Drivers License No. D110020419 issued by the Land Transportation Office on March 28, 2009 and valid until July 17, 2014 at the City of Puerto Princesa, bearing his photograph and signature, known to me as the same person who personally signed the foregoing instrument before me and avowed under penalty of law to the whole truth of the contents of said instrument.

ATTY. JOSEPH JOJO D. DAJAY Notary Public Puerto Princesa City, Palawan Roll No, ________________________ IBP Roll No. _____________________ PTR No. ________________________ MCLE Compliance Cert. No._________ Doc. No. __________ Page No. _________ Book No. _________ Series 2013

Copy furnished:

Atty. Tiffany Justine Gallardo

Valencia Street Puerto Princesa City