PROMISSORY NOTE

P _______________
For value received, I/WE ___________________ promise to pay PHILIPPINE SAVINGS BANK
(the Bank) or its order, the sum of ________________________ (P ___________________) Philippine
Currency, to be payable without need of notice or demand, details of which are as follows:
1. Loan Term: ______________ ( ) months
2. Purpose: ___________________. The proceeds of the Loan shall be used exclusively for the purpose/s
applied for and granted by the Bank.
3. Repayment: P ___________ Principal and Interest monthly for a period of __________ ( ) months
starting on the date of loan release until repricing date. Thereafter, interest is subject to review and
adjustment every repricing date. Loan is considered released to the Borrower on the date when the check
is prepared and accounting entries are recorded in the books of the Bank.
( ) Term Loans
P ______________ (Principal and Interest) monthly for ____ months starting on ______ and every
_____ of the month thereafter until the next interest fxing period. Subsequent installments shall
be determined every interest fxing period and paid in a similar manner until the loan is fully
paid.
( ) For loans availed under the Revolving Credit Line
Interest only at ___ % for the ( ) month ( ) quarter ( ) semi-annual ( ) annual until the next
interest fxing period. Subsequent interest payments shall be determined every ( ) month ( )
quarter ( ) semi-annual ( ) annual and paid in a similar manner until the line expires.
b) Outstanding principal loan including interest and other charges shall be paid upon line expiry
unless renewed or payment terms are changed at the option of the Bank.
a)

( ) For Home Construction Loans

a) First year Interest payment only
Interest only at ___ % for ___ months starting on ___________ and every ____ of the month
thereafter. Client has the option to effect payment in accordance with (b) within the frst year
upon written or verbal notice which notice shall be considered fnal subject to paragraph 6 hereof
b) Succeeding years (i) Interest Payment only or (ii) Principal and Interest payment
(i)
Interest only monthly for _____ months starting on _____ and every _____ of the month
thereafter until the line expires. Outstanding principal loan including interest and other
charges shall be paid upon line expiry.
(ii)
Principal and Interest monthly for _____ months starting on _______ and every ______ of
the month thereafter. Subsequent installments shall be determined every interest fxing
period and paid in a similar manner until the loan is fully paid.
( ) For Principal Paid on Different Dates:
P _________ (Interest only) monthly for ______ months starting on ____ and every ____ of the
month thereafter. Subsequent interest payments shall be determined every interest fxing period.
Principal shall be paid in the following manner and on the dates agreed upon:
P ____________ on ________________; P ________________ on ______________;
P ____________ on ________________; P ________________ on ______________;
P ____________ on ________________; P ________________ on ______________;
P ____________ on ________________; P ________________ on ______________;
P ____________ on ________________; P ________________ on ______________;
4. Interest Rate and Interest Fixing Period
Interest Rate is fxed (
) monthly (
) quarterly ( ) semi-annually (
) annually. Interest on the
outstanding principal amount of this Note shall be computed at the rate determined by the bank every
interest review period with advice/notice to the borrower. If the BORROWER (hereinafter referred to as

the CLIENT) fails to communicate in writing to the Bank within fve (5) days from notice of his nonacceptance of the adjusted rate, h e shall be deemed to have agreed to said new rate. If client, however,
fnds the adjusted interest rate unacceptable and notifes the Bank in writing of his disagreement, the
Client shall have the right to prepay the outstanding loan including interest and other charges without
penalty. In the event of disagreement between the Bank and Client as to the rate of interest, the entire
obligation shall become due and demandable.
EXTRAORDINGARY INFLATION/DEFLATION. It is a special condition of this AGREEMENT that the
parties agree that the amount of peso-obligation under this Agreement is based on the present value of
the peso, and if there be any change in the value thereof due to extraordinary infation/defation, or any
other cause, then the peso-obligation contracted shall be adjusted in accordance with the value of the peso
then prevailing at the time of the fulfllment of the obligation. If there be disagreement on the adjustment,
the Client may prepay the obligation under this Note within thirty (30) days from receipt of the notice of
adjustment, otherwise, the Client shall be deemed to have agreed to the adjustment.
5. Late Payment Penalty. Three (3%) percent per month on any overdue amount under this Agreement, a
fraction of a month to be considered as one (1) full month over and above and in addition to the interest
payable under this Agreement.
6. Advance Loan Payment. Subject to the payment of all amounts due and payable from the CLIENTS to
the BANK under this AGREEMENT, the LCIENTS may prepay the Loan in full, together with the accrued
interest thereon up to the date of prepayment, subject to the following conditions.
a) Notice of prepayment, once communicated to the Bank whether verbal or in writing, shall be
irrevocable and binding on the CLIENTS. A written conformity of the Client to the said advance
payment is no longer necessary even if the said advance payment will result in extending or
shortening the term of the loan.
b) Prepayments shall be value dated.
7. Manner of Release.
a) Term Loan The Bank is hereby authorized to release the proceeds of the loan to the Clients
account maintained with the Bank or through a Managers Check payable to the rightful or duly
authorized party (i.e., the borrower, seller or other creditor) or to be applied to an existing loan
with the Bank.
b) Home Construction Loan The proceeds shall be released in a staggered basis to be determined
by the Bank.
c)

Revolving Credit Line Release of loan proceeds can be effected by any means provided for in
paragraph 26 of this Agreement.

8. Mortgage. That for and in consideration of the above-mentioned sum received by way of loan, and of
other credit accommodations of whatever kind and nature obtained and those that may hereafter be
obtained by the Borrower/Mortgagor (hereinafter referred to as the CLIENT), the Client by this
agreement, hereby constitute a frst mortgage over the following property/ies, together with all existing
improvements as well as those that may hereafter ne constructed thereon, inclusive of all fruits and rents,
in favor of the Bank, its successors and assigns specifcally described as:
TCT No.

LOCATION

LOT No./BLK No.

AREA

The Client hereby warrants that the above property/ies are free from any and all claims, liens or
encumbrances. The Client further warrants and represents, in the event that the above property/ies are
constituted and used by the Client as a family home, Client hereby undertakes to obtain the consent of his
legal benefciaries who are residing or will reside in the family home.

The other terms and conditions of the Real Estate Mortgage are contained in the reverse side hereof which
are also conformed to by the Client.
ASSIGNMENT OF DEPOSIT. As security or additional security for the loan granted hereunder and
other credit accommodations of whatever kind and nature obtained and those that may hereafter be
obtained by the Client from the Bank. Client hereby assigns, transfers and conveys to the Bank all his
rights, title and interest in his deposit/s with the Bank covered by ( ) Savings ( ) Current ( ) Time
Deposit ( ) Special Savings Deposit ( ) Others Account No. ______________ with a credit balance of
Pesos: _________________________ (P ___________) as of ________________.
Client hereby agrees not to make any withdrawals against said deposit/s unless the said
loan/overdraft/credit accommodation which is secured by said deposit/s, as well as all interest due,
penalties and expenses incurred have been fully paid. In the event that the said loan/overdraft/credit
accommodation and interest are not paid on maturity date or at any time upon demand by the said bank
for any reason whatsoever or upon the happening of any event of default as provided hereof, the said
bank is fully authorized and empowered to immediately apply the said deposit/s for the payment of the
loan/overdraft/credit accommodation herein mentioned.
Client hereby waives his rights under existing laws to the confdentiality of the said deposit.
9. Attorneys Fees and Other Expenses. In case of breach and/or default by the Client of any of the terms
and conditions of this Note and it is placed in the hands of an attorney for collection, the Client agrees to
pay an additional sum equivalent to twenty-fve (25%) percent for attorneys fees, plus costs and other
fees and incidental expenses of collection and/or litigation.
10. Acceptance of Payment After Due Date. Acceptance by the Bank hereof of payment of any
installment of any party thereof after due date shall not be considered as extending the time for the
payment or as a modifcation of any of the conditions hereof. Failure of the Bank to exercise any of its
rights under this Note shall not be deemed as a waiver of such right.
11. Venue. Any action to enforce payment of this Note may be brought by the Holder at its sole option, in
the proper courts of Makati or in any court within Metropolitan Manila or in any City or Province where
the Holder has a branch offce.
DISCLOSURE STATEMENT OF LOAN/CREDIT TRANSACTIONS
(AS REQUIRED UNDER R.A. 3765. TRUTH IN LENDING ACT)

Name of Client/Borrower(s):

_______________________________________
_______________________________________

Name of Co-Maker(s):

_______________________________________
_______________________________________

1. Loan Granted (Amount to be fnanced)

2. Finance Charges:

P___________(A)
Not deducted

Deducted From

Proceeds of Loan
a. Interest ____% p.a. from ____ to ____

P_____ P_____

( ) Simple

( ) Monthly

( ) Semi-Annual

( ) Compound

( ) Quarterly

( ) Annual

b. Commitment Fee

_____ _____

c. Other Charges incidental to the

_____ _____

extension of credit (Specify)

_____ _____

____________________________

_____ _____

____________________________

_____ _____

Total Finance Charges

P _____ P_____ (B)

Percentage of Finance Charges to Total Amount Financed

_____

3. Non-Finance Charges
a. Processing/Application Fee

_____ _____

b. MRI Premium

_____ _____

c. Fire Insurance Unit

_____ _____

d. Documentary/Science Stamps Tax

_____ _____

e. Notarial Fees

_____ _____

f. Handling Fees

_____ _____

g. Mortgage Registration Fees

_____ _____

h. Miscellaneous Fees

_____ _____

________________________

_____ _____

________________________

_____ _____

Total Non-Finance Charge

P _____ P_____ (C)

4. Total Deductions from proceeds of Loan (B plus C)

P_____ (D)

5. Net Proceeds of Loan (A less D)

P_____

6. Effective Interest Rate (EIR) IRR using Discounted Cash Flow

_____ %

7. Schedule of Payment (See Amortization Schedule)

8. Additional Charges in case certain stipulations are not met by Borrower.
a. Late Payment Charges penalty of ___% per month
b. Attorneys fee not less than 25% of all amount

P_____

outstanding in case of litigation but not less than P5,000.00

_____

c. Liquidated Damages of 10% of the amount due but

not less than P1,000.00

_____

d. Others:
____________________________________

_____

____________________________________

_____

CLIENT ACKNOWLEDGES RECEIPT OF A COPY OF THIS STATEMENT PRIOR TO THE

CONSUMMATION OF THE CREDIT TRANSACTION AND THE CLIENT UNDERSTANDS AND
FULLY AGREES TO THE TERMS AND CONDITIONS OF THIS AGREEMENT.
I/WE HEREBY AFFIRM AND ACKNOWLEDGE THAT I/WE HAVE READ CAREFULLY AND
UNDERSTOOD ALL THE FOREGOING STIPULATIONS INCLUDING THE DISCLOSURE
STATEMENT OF LOAN/CREDIT TRANSACTION AND THE ADDITIONAL TERMS AND
CONDITIONS ON THE REVERSE SIDE OF THIS AGREEMENT AND AT THE TIME I/WE AFFIXED
MY/OUR SIGNATURES HEREIN, ALL THE BLANK SPACES HAVE BEEN CORRECTLY AND
COMPLETELY FILLED OUT.
PHILIPPINE SAVINGS BANK
By:

________________________________
CLIENT/BORROWER/MORTGAGOR
TIN :

________________________________
Authorized Signatory/TIN

________________________________
CO-BORROWER
TIN :
SIGNED IN THE PRESENCE OF:

________________________________

________________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES

)
) S.S

BEFORE ME, a Notary Public, for and in ___________, Metro Manila, on this ___ day of _______, 20___
personally appeared the following:

NAME

CTC. No.

Date and Place

PHILIPPINE SAVINGS BANK

Known to me and to me known to be the same persons who executed the foregoing agreement and they
acknowledged to me that the same is their free and voluntary act and deed as well as the free and
voluntary act and deed of the entities which they represent.
WITNESS MY HAND AND NOTARIAL SEAL on the date and at the place frst above written.
Doc. No. ______________
Page No. ______________
Book No. ______________
TERMS AND CONDITIONS
REAL ESTATE MORTGAGE
12. Obligations secured by this Mortgage covers the following:
a. All obligations of the Client under this Agreement, and any document executed to effect the
conversion of the loan from a Revolving Credit Line to a term loan or vice versa, change of payment
terms and conditions, renewal, extension or novation of the same irrespective of whether such obligations
as renewed, extended, amended or novated are in the nature of new, separate or additional obligation. It
is the essence of this Agreement that the mortgage shall remain valid and in full force and effect and shall
continuously secure the obligations secured herein without need for the Client to execute a new
document to cover the said conversion, change in payment terms, renewal, extension or novation.
b. In case the Client executes subsequent promissory note or notes as a new loan or is given any other
kind of accommodation, this mortgage shall also stand as security for the payment of the said
accommodation without the necessity of executing a new contract and this mortgage shall have the same
force and effect as if the said note or notes and/or accommodations were existing as of the date hereof.
This mortgage shall also stand as security for said obligations and any and all other obligations of the
Client to the Bank whether for the Banks own account or in its capacity as trustee or investment manager,
or whether direct or indirect, principal or secondary, absolute or contingent, due or become due, whether
such obligations have been contracted before, during or after the constitution of this mortgage. Any other
obligation of every kind owing to the Bank by the Client.
c. Any expense incurred in collecting any and all of the above in enforcing any and all rights, powers,
and remedies of the Bank under this Mortgage.
The Bank may, at its sole discretion, require Client to mortgage or pledge additional securities to
further secure the obligations of Client. In this regard, Client shall execute and deliver or cause the
execution and delivery of the Mortgage or other forms of collateral in form and substance acceptable to
PSBank over the properties offered by client and approved by PSBank.
13. Client shall not sell, assign, lease or otherwise dispose of the Mortgage Property/ies or any party
hereof, without the prior written consent of the Bank.
Notice. Notice is hereby given to the whole world that the Bank or its assigns will not be responsible
for not can the chattels or any part hereof be held lien for any indebtedness whatsoever outside the debt
herein secured.
14. Insurance. Client shall, at its expense, insure all the building now existing on the property/ies and
those which may hereafter be constructed thereon against loss or damage by fre, lightning, typhoon,
earthquake, and/or other perils as may be required by the Bnak for the full insurable value thereof and
secure a mortgage redemption insurance or fnancial security policy.

Client shall obtain insurance coverage from an insurance company acceptable to the Bank, submit and
endorse to the Bank within 10 days before expiry of current insurance policy/ies all of the following: a)
the original fre/lightning/typhoon/earthquake insurance policy; b) the Mortgage Redemption
Insurance or Life insurance policy assigned to the Bank as deemed necessary; c) the offcial receipt of the
premium payment and d) endorsement to make the insurance proceeds payable to the Bank as its interest
may appear.
Should there be any unendorsed insurance, the Client renounces his/her/their right to collect the same
personally in case loss takes place, as this document shall be considered as suffcient endorsement of each
and all of said policy/ies and to this end, the Client authorizes the insurance company/ies concerned to
pay directly to the Bank any claim that may be due to the Client upon presentment of this document,
without prejudice, however to a liquidation of accounts between the Client and the Bank.
In the absence of submitted insurance policies, the Bank may, at its option but without any obligation on
its part, obtain all the aforementioned insurance at Clients expense, and prosecute or settle claims on
such insurance as its attorney-in-fact.
15. Taxes. Documentary stamp taxes, registration expenses, insurance premiums, and all such charges
due for the execution, registration and implementation of the terms of this obligation as well as the
Mortgage and this Agreement, shall be for the account of Client and shall be paid separately or debited
by the Bank against the Loan Account.
The Client shall pay all real property taxes and government charges actually assessed and which may
hereafter be imposed by competent authorities on the property/ies mortgage not later than ten (10) days
prior to the expiration of the ordinary period to make said payment without penalties or surcharges, and
shall deliver to the Bank the offcial receipt evidencing such payment within the same period of at least
ten (10) days prior to the expiry of the period to make such payment.
16. Works and Repairs. The Client shall undertake, at his/her/their own expenses, all works or repair
that maybe required by competent authorities to be done. The property/ies mortgage should be in the
same perfect state as to safety, maintenance and sanitation, and to promptly execute all repairs in case of
damage or wear and tear.
17. Payment by Bank of Premium, Taxes and Repair. In case the Client violates any of the conditions
stipulated in the preceding paragraphs, the Bank may, in its absolute discretion and without notice to the
Client, pay the insurance premiums, and all taxes and surcharges due on the property/ies. The Bank also
may, for the account of the Client, perform all the necessary works and repairs, at its absolute discretion,
without the necessity of notifying the Client. The Bank shall recover from the Client all sums advanced
with interest at the rate prescribed herein stated on the face of the contract plus penalty of 3% per month
from the date of each advance until its complete reimbursement, said advance together with the interest
plus penalty due thereon, being likewise guaranteed by this mortgage, it being understood that this
stipulation shall be without prejudice to the right of the Bank to declare the obligation due and payable.
18. Events of Default. Each or any of the following shall constitute an event of default:
18.1 Client fails to pay when due and payable the installment or minimum amount due and any
Excess Availments including interest, penalties and other charges that may be due thereon under
the Revolving Credit Line, and/or any other sums which Client is obligated to pay under the
agreement or any other related documents.
18.2 Client incurs default on any other obligations, loans, advances and other accommodations owing
the Bank whether for the Clients own account or in its capacity as trustee or investment manager,
whether the obligation be direct or indirect, or the Client be principal or co-maker;
18.3 Client violates any of the terms and conditions of the Agreement;
18.4 The Real Estate Mortgage constituted herein cannot be registered with the Register of Deeds for
failure of the Client to sign or deliver the necessary documents for the said purpose;
18.5 Client is in default under any other contract of obligation with the Bank or with any other person
or entity for the payment of borrowed money for the deferred purchase price of property or for
any other purpose resulting in the acceleration of the whole or part of the obligation and making
the same due and payable prior to the stated normal date of maturity;

18.6 Proceeding for voluntary or involuntary bankruptcy, insolvency, or suspension of payments are
instituted against and/or initiated by the Client;
18.7 An application for any decree or order of garnishment, attachment, execution, receivership, or
sequestration is fled and/or issued against Clients properties;
18.8 Any representation or warranty made by Client in the Agreement, or any statement, document,
or other instrument furnished in connection with the agreement or to induce the Bank to enter
into the Agreement, is shown to be false or misleading in any material respect when made;
18.9 Any other circumstances occurs which, in the opinion of the Bank, gives reasonable grounds to
believe that Client may not be able to perform its obligations under the Agreement;
18.10 The loan proceeds were used by the Client for a purpose different from the purpose intended an
approved by the Bank.
19. Consequences of Default. Upon the occurrence of any of the foregoing events of default, the Bank
may, at its option and without need of notice or demand, exercise any or all of the following remedies:
19.1 Dishonor any PSBank Revolving Credit Line Check(s);
19.2 Cancel/close/freeze/suspend the Credit Line, PSBank Revolving Credit Line Current Account
and the Loan Account; provided such cancellation shall disqualify Client from obtaining further
credit from the Bank and shall empower the Bank to furnish credit bureaus with Clients names
and credit standing;
19.3 Consider the entire Outstanding Balance immediately due and demandable and/or require
Client to pay the Bank the whole or part of the Outstanding Balance; provided, that the amount
certifed by the Bank as the amount outstanding shall be conclusive and binding on Client, absent
manifest error in calculation or transmission. For purpose of this Agreement, Outstanding
Balance is defned as the sum of the principal balance, interest, penalties and other charges;
19.4 Convert the Revolving Line Account into a Term Loan at the option of the Bank;
19.5 Reduce the approved credit line;
19.6 Foreclose the Mortgage. The Bank being hereby appointed by the Client as attorney-in-fact, with
full power of substitution, to enter upon and take possession of the mortgage property/ies
without need of any court order or authority other than herein granted and to sell and dispose of
the same to the highest bidder at public auction without need of a court order pursuant to Act
No. 3135 as amended, to perform all other acts and administration and management in the most
advantageous manner for the best interest of the Bank;
19.7 Exercise the right of offset and/or legal compensation.
20. Application of Proceeds of Foreclosure Sale. The proceeds of sale of mortgage property/ies shall be
applied as follows:
20.1 To the payment of the expenses and cost of foreclosure and sale, including the attorneys fee as
herein provided
20.2 To the satisfaction of all interest and charges accruing upon the obligations herein and hereby
secured
20.3 To satisfaction of principal amount of the obligation herein and hereby secured
20.4 To the satisfaction of all other obligations then owed by the Client to the Bank
20.5 The balance, if any, to be due to the Client.
21. Execution of Documents. In case of sale pursuant to the provision of the preceding paragraph,
whether made to the Bank or any other person, the Bank is hereby expressly authorized and empowered
by the Client at such sale to execute and deliver, on behalf of the Client, such deed of conveyance as may
be necessary or proper for the purpose of vesting to the purchaser at such sale full, complete and
absolute title to the property so sold , free from all liens and encumbrances whatsoever.
22. Authority of the Bank in case of Defciency. Should the foreclosure sale of the property/ies
mortgaged be insuffcient to cover all of the obligations herein secured, the Bank is authorized to cover
the defciencies from other securities, moneys or funds belonging to the Client whatever their nature may
be which the Bank may hold or have in its possession. To this effect, the Client hereby confers upon the
Bank ample and suffcient power and authority as shall be necessary to dispose of said securities, either
judicially or extrajudicially, or apply said moneys or funds to the payment thereof, whichever may be
convenient or advantageous to it, and in such cases, the Bank shall have full authority to execute and sign

any and all kinds of documents which may be necessary to give effect and validity to any disposition
made by it as stated.
23. Collateral Deterioration. In case the property/ies mortgaged should diminish in value, be destroyed,
or deteriorate in considerable value for any cause, even by force majeure, or be the subject of
expropriation proceedings, in whole or in part, the Bank has the option to either require the Client to
immediately pay off his/her/their obligation totally or partially or to immediately give additional
securities acceptable to the Bank.
That for as long as the loan remains outstanding, the aggregate fair market value of the Mortgage Prop erty/ies shall at all time, be equal to the Required Collateral Value. If at any time, in the opinion of the
Bank, the fair market value of the Mortgaged Property/ies is/are less than the Required Collateral Value,
the Client shall upon demand by the Bank, mortgage under the terms and conditions et forth or referred
to herein additional property/ies of suffcient quantity and quality acceptable to the Bank, such that in
the reasonable determination of the Bank, the aggregate fair market value of the Mortgaged Property/ies
(including such additional property/ies) shall at least be equal to the required collateral value. Such additional property/ies shall be subject to the terms and conditions of this Agreement and shall form part the
Mortgage Properties without need for any further act or deed. If deemed necessary by the Bank, however,
the Client shall execute, deliver and register at the Clients own expense, do such other things and acts
necessary to subject such additional property/ies to the lien and provision of this Agreement.
SPECIAL PROVISION FOR REVOLVING CREDIT LINE
24. Credit Line or Credit Limit and Purpose - PSBank shall make the Credit Line available to the Client
for a period one (1) year from the date of this Agreement, provided, that PSBank shall at its sole discretion
determine the conditions, if any, under which said line shall be made available; provided, further, that PSBank shall have the right, power and authority to reduce the Loan.
PSBank shall establish and maintain in its books a loan account in Clients name. All transactions relating
to the Credit Line shall be recorded in said Loan Account and refected in the Statement of Loan Account.
Client shall be responsible for verifying the Statement of Loan Account with PSBank without the need to
be notifed. The availments from the Revolving Credit Line shall be used solely and exclusively for the
purpose for which it was applied for or granted by PSBank.
25. PSBank Revolving Credit Line Current Account. - Client shall open a PSBank Revolving Credit Line
Current Account which shall be operated solely for the purpose of drawing on the Loan Line and making
payments thereunder. The PSBank Revolving Credit Line Current Account shall be linked to the Loan
Account to allow automatic transfer to and from the PSBank Revolving Credit Line Current Account and
the Loan Account.
26. Access to Credit Line. - Client may draw on the Credit Line by: (a) the issuance of PSBank's Revolving Credit Line check(s); (b) withdrawals against the PSBank Revolving Credit Line Current Account
throught the use of ATM card; (c) such other means of credit line availmaent as PSBank may authorize,
e.g. credit to client's deposit account or issuance of PSBank's Manacher Checks to authorized payee. PSBank may at any time impose such minimum availment limits per transaction as may be communicated
to Client.
PSBank shall have the right, power and authority to debit the Loan Account for interest, penalty charges,
service charges, insurance premiums, taxes and all other sums due and payable to PSBank under the
Agreements, notwithstanding that any sums exceed the Available Credit Line.
Availment Limit Clients shall not make any Availment in excess of the Available Credit Line. Subject to
Section 26, if an intended Availment by Client will cause the Available Credit Line to be exceeded, PSBank
shall have the right, power and authority to refuse the intended availment without need of notice.
In the event that an Excess Availment is incurred, the same shall, without need of notice, be immediately
due and payable including interest, penalties and other charges that may be due thereon and the Credit

Line shall be suspended, at the option of PSBank, unless and until Payments are made covering the Ex cess availment.
27. Evidence of Availments - Availments shall be evidenced by: (a) encashed or negotiated PSBank Revolving Credit Line Check(s); (b) PSBanks records of withdrawals against the PSBank Revolving Credit
Line Current Account through Clients ATM card; (c) PSBank debit memoranda against the Loan Account
for sums due from Client under the Agreements; and/or (d) such other documents as may be necessary
to evidence Availments through such other means as PSBank may authorize. PSBank shall have the right
to retain all evidence of Availments.
Absent manifest error on the part of PSBank, the foregoing evidence of Availments shall be conclusive
and binding on Client. Client is aware that the only evidence of Availments through the ATM is PSBanks
record of withdrawals. Client is further aware that access to the PSBank Revolving Credit Line Current
Account through the ATM can only be possible through the use of: (a) Clients ATM Card; which shall remain in Clients exclusive possession and custody; and (b) Clients personal identifcation number, which
shall remain within Clients exclusive knowledge.
In case the ATM card or check/checkbook is lost or stolen, Client shall notify PSBank immediately and
confrm such notifcation by way of an Affdavit for any lost or stolen ATM card or PSBank Revolving
Credit Line Check/checkbook within 24 hours from occurrence of such loss or theft. PSBank shall not be
responsible for any unauthorized transaction against the Credit Line until after PSBank has received the
Affdavit. Client shall be liable for all transactions made through the lost or stolen ATM card or Checkbook before PSBank has received a written notice together with the Affdavit if such loss.
No stop Payment Order shall bind PSBank or be valid unless: a) the check or checks to be affected are
properly identifed or describe with particularity in all aspects; b) made in writing and in case of loss, an
Affdavit of loss is submitted; and c) served and delivered directly to the cashier or any of the assistant
cashier of PSBank. Client agrees to hold PSBank free from any liability or expenses arising from its refusal
to pay the said items in accordance with the Stop Payment Order.
28. Interest on Outstanding Balance - The Outstanding Balance shall earn simple interest computed
daily, at such per annum rate for such interest period (equivalent to billing period of 30 days or more) as
shall be determined in advance by the Bank and advised initially through the Letter of Approval, Disclosure Statement and thereafter through the Statement if Loan Account. Interest shall be calculated on the
basis of the actual number of days elapsed and a year of 360 days. Interest shall be repriceable at the start
of each billing period. Interest shall be automatically debited by PSBank against the Loan Account. In the
event of disagreement between PSBank and Client as to the rate of interest, the entire obligation shall become due and demandable.
29. Service Fees and Charges PSBank shall be entitled to service fees/charges related to but not limited
to processing and handling of the Revolving Credit Line at such rates as may be fxed by PSBank from
time to time and indicated in the Letter of Approval, Disclosure Statement or Statement of Loan Account.
In the event that PSBank imposes minimum availment limits, PSBank shall likewise be entitled to impose
an additional service charge for processing availments in violation of said minimum limit at such rate as
may be fxed by PSBank from time to time. Charges shall be automatically debited by PSBank against the
Loan Account.
30. Penalty Charges Penalty of 3% per month on the Outstanding Balance shall be imposed under the
following circumstances: (a) Failure to make the full remittance required to cover the Minimum Amount
Due including excess Availment on or before payment due date per Statement of Loan Account (b) Failure to make the full remittance required to cover the minimum amount due including Excess Availments,
within the required number of days set by PSBank.
Penalty charges shall be automatically debited against the Loan Account.
31. Payments (a) Client shall immediately make such Payments as are suffcient to cover the Minimum
Amount Due including Excess Availments, (b) Payments can be made by Client by cash, check or

automatic debit arrangements against Clients deposit account with PSBank in person, by mail, or when
available, provided that payments using other bank checks shall be recognized only after the amount
shall have been collected; provided further that payments through ATM, Internet Banking, Phone
Banking and the like shall subject to verifcation and approval by PSBank, without prejudice to pending
legal action/s and shall be recognized only on the next banking day after such payment(s) are made. (c)
Treasury warrants and second endorsed checks shall not be accepted as payment.
32. Payment Due Date PSBank shall set the Payment Due Date within a specifc number of days from
the end of billing period as indicated in the Statement Loan Account.
33. Excess Payments - Excess Payments shall not be credited to Clients other deposit accounts with
PSBank but shall be kept in the Loan Account without interest.
34. Statement of Loan Account- PSBank shall send the Statement of Loan Account to Client after each
billing or cut-off period. The statement of Loan shall be fnal and conclusive against Client unless Client
expresses disagreement through a letter sent to PSBank within thirty (30) days from the billing period
specifed in said Statement. Should the Parties fail to settle any disputed item, the Loan Account shall at
the option of PSBank be suspended until the dispute is settled. The Protest shall not suspend the accrual
of interest and/or penalty charges. However, if the dispute is settled in Clients favor, said charges shall
be computed based on the reconciled amount.
35. Cancellation of Credit Line - Upon Cancellation or expiration of the Credit Line, the Available Credit
Line and PSBank Revolving Credit Line Current Account shall be automatically closed. Client shall
immediately pay the entire Outstanding Balance and surrender to PSBank any and all unused PSBank
Revolving Credit Line Check(s) as well as the ATM card issued. PSBank may, at its option without the
need of notice or demand, exercise any or all of the remedies stated in paragraph 19.
36. Renewal of Credit Line or Conversion to Term Loan. PSBank may opt to renew the Credit Line for
another year or convert the same to a Term Loan upon notice to Client.
37. Dishonor of PSBank Revolving Credit Line Check(s). PSBank shall have the right, power and
authority to dishonor any PSBank Revolving Credit Line Check(s) under any of the following cases: (a) in
case of violation of any of the terms of this agreement; (b) in case the acceptance or payment of such
check(s) will cause the Available Loan Line to be exceeded; (c) in case the Loan account shall have been
blocked or cancelled; (d) in case in Credit Line has expired; and/or (e) for the same reason and in the
same manner that regular current account checks may be dishonored. Such dishonored checks shall be
subject to the same Bankers Association of the Philippines (BAP) charges, which shall be borne by
Client and debited against the Loan Account.
PSBank shall not be liable for any loss or damage from its failure to honor any PSBank Revolving Credit
Line Checks, it being understood that Clients sole remedy in such case is to immediately contact PSBank
for other arrangements.
COMMON PROVISIONS FOR ALL LOAN TYPES
38. Grant of Credit. Subject to the terms and conditions hereof, the BANK hereby agrees to make
available to the CLIENT/S credit facilities in such amounts as may be approved by the Bank upon
availment;
39. Special Payment Condition. Whenever the CLIENT/S is carried in the books of the BANK for more
than one (1) account, and CLIENT/S become in default, the BANK shall have the option to apply any
payment received from the CLIENT/S or any other source in behalf of the CLIENT/S, or any money or
thing of value belonging to the CLIENT/S which may be in the possession or control of the BANK, to any
account the BANK may choose notwithstanding that one account may be more onerous than the other, or
that CLIENT/S gave instructions to the contrary.

The books of the BANK shall be fnal and conclusive evidence concerning the amount due it. This
provision shall prevail over any agreement to the contrary contained in any other documents or contracts
now hereafter executed by the CLIENT/S with the BANK.
40. Taxes. Any and all payments made by the CLIENT/S hereunder or under the Note/s shall be made
free and clear of, and without deduction, for any present or future taxes, levies, imposts, deductions,
charges or withholding. If the BANK shall be required to pay for such taxes or if the CLIENT/S shall be
required to make a deduction on any payment hereunder, the sum payable to the BANK shall be
increased as may be necessary so that after making such payments or deductions, the BANK shall receive
an amount equal to the sum it would have received as if no such deduction payments have been made.
If under the existing law or any law which shall be enacted in the future, the CLIENT/S is or will be
exempted from the payment of any of the taxes aforementioned, so that the burden of paying such taxes,
and if the BANK is compelled to advance payment of such taxes, then the CLIENT/S shall immediately,
upon notice, reimburse the BANK of such expenses.
41. Notwithstanding any provision to the contrary contained herein should it be determined by any
competent governmental body that it has become unlawful for the BANK to maintain the Loan, then (i)
the Loan shall be prepaid in full by the CLIENT/S, together with all the other sums due hereunder, in
accordance with the schedule of payment to be negotiated and agreed upon by the BANK and CLIENT/S
and (ii) the Loan shall be deemed terminated.
42. Application of Payment. Payments made by the CLIENT/S shall be applied in accordance with the
following order of preferences:
a)
Accounts Receivable and other out of pocket expenses;
b)
Front-end Fee, Origination Fee, Attorneys Fee and other expenses of collection;
c)
Penalty charges;
d)
Past-due Interest;
e)
Principal Amortization/Payments in Arrears;
f)
Advance Interest;
g)
Outstanding Balance; and
h)
All other obligations of CLIENT/S to the BANK, if any.
ARTICLE III - COLLATERALS
43. Security. The full and prompt repayment by the CLIENT/S of all its obligations to the BANK hereunder which the CLIENT/S may or hereafter be liable to the BANK including renewals, extensions and reavailments, shall be secured by the collaterals indicated herein and constitute an integral part of this
Agreement.
44. Other Collaterals. The Bank hereby reserves the right upon notice to the CLIENT/S and under reasonable circumstances to require such security arrangements as the BANK deems necessary to ensure
performance by the CLIENT/S on its obligation under this AGREEMENT, the Note/s and other related
contract documents.
45. Conditions for Each Drawing and Availment.
a)
Each drawing or availment by the CLIENT/S is subject to availability of funds;
b)
Drawing/availment under the Loan shall be subject to compliance with loan value requirements
and existing credit policies. The Bank reserves the right to withhold release/s or cancel the Loan at any
time if warranted as determined by the Bank.
c)
Compliance with the single borrowers limit as applied to CLIENT/S.
46. Good Standing, Power/Authorization. The CLIENT/S has full legal power and capacity to enter into
and perform its/his/her/their obligations under this AGREEMENT, the Note/s, collaterals and other
documents, and instruments executed in relation hereto. The CLIENT/S has taken all necessary actions to
authorize the borrowings hereunder, the collaterals required and to execute, deliver and perform this
AGREEMENT. This AGREEMENT, the Note/s when duly executed, registered as the case may be, and
delivered, constitute and will constitute the legal, valid and binding obligations of the CLIENT/S enforecable in accordance with their respective terms.

47. No Default. No event of default as defned herein has occurred, and is continuing, nor any event
which constitutes or which with the giving of notice or lapse of time or both would constitute such an
Event of Default has occurred.
48. Validity of Agreement. The execution and delivery of this AGREEMENT, the Note/s, collaterals and
other documents required hereunder and the performance of the CLIENT/S obligation hereunder will
not confict with or violate any law, regulation or any agreement or instrument to which the CLIENT/S is
a party or by which it may be found.
49. Litigation. There are no arbitration proceedings and no proceedings before any court or any government agency or administrative body pending or to the best of its knowledge threatened against the
CLIENT/S , that if adversely determined might materially impair the fnancial conditions or operations
of the CLIENT/S or its ability to pay, when due, the principal of and the interest of the Loan or any portion thereof and any fee, charge or expense due hereunder or that might enjoin the execution and delivery
of, or might affect in any manner the validity or enforceability of this AGREEMENT, the Note/s and related documents and instruments.
50. Performance of Obligations. The CLIENT/S shall pay or cause to be paid all taxes, fees, assessments,
governmental charge or levies upon any of its properties, assets or revenues before the same shall become
past due and all lawful claims of whatever nature which, if unpaid, might become a security interest
upon such property, assets or revenues, unless the validity thereof is being contested in good faith by appropriate proceedings diligently conducted and such reserves or adequate provisions as may be required
under generally accepted accounting principles shall have been made therefor.
51. Maintenance of Government Approvals. The CLIENT/S shall see to it that all consents, licenses,
approvals and authorizations as may be required by applicable law or regulation to enable it to perform
its obligations hereunder or required for validity, performance or enforceability of this AGREEMENT, the
Note/s and the collaterals are obtained or renewed from time to time and remain in full force and effect.
52. Notice. The CLIENT/S shall promptly advise the BANK of: (a) any event of default or any event
which with notice or lapse of time would become an event of default; (b) any material adverse factor
which may inhibit its capacity to perform its obligations hereunder.
53. Compensation or Set-Offs. The BANK may apply any deposit in the name of, payment received from
or moneys held to the order of the CLIENT/S in satisfaction in whole or in part of any sum due and
payable by the CLIENT/S arising from this Loan. The BANK is hereby authorized, effective upon the
CLIENT/S default in any of the loans outstanding with the Bank, to apply any deposit, any credit
balance, funds or properties of the CLIENT/S then in the possession of the BANK in payment of any
amount owing by the CLIENT/S hereunder by way of compensation or set off and shall inform
CLIENT/S immediately after such application of payment is made.
54. Waiver/Cumulative Rights. The failure or delay of the BANK to require performance by the
CLIENT/S of any provision of this AGREEMENT shall not affect its right to require performance of such
provisions unless and until such performance has been waived in writing by the BANK in accordance
with the terms hereof. Each and every right granted to the BANK hereunder or under any other
document or instrument delivered hereunder or in connection herewith, or allowed to the BANK at law
or equity, shall be cumulative and may be exercised in whole or in part from time to time.
55. Amendments. This AGREEMENT and the documents referred to herein constitute the entire
obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior
expression of intent or understanding with respect to the transaction. This AGREEMENT and the
documents referred to herein may not be amended or modifed except by written agreement of all the
Parties hereto.

56. Beneft of Agreement. This AGREEMENT shall be binding upon and shall ensure to the beneft of and
be enforceable by the Parties hereto and their respective successors and assigns. However, the CLIENT/S
shall not assign any of its interest hereunder without prior written consent of the BANK.
57. Governing Law. This AGREEMENT shall be governed and interpreted in accordance with the laws of
the Republic of the Philippines.
58. Notices. Any communication required or permitted to be given hereunder shall be deemed to have
been duly made or given if delivered in writing by personal delivery or by registered mail, postage
prepaid, or by telex, telegram, radiogram or cable (with postage prepaid, by any private courier, electronic
mail, SMS, MMS, or any other electronic device or any other means allowed by information technology to which
the communication is intended at its address indicated in this Agreement or at any of the other party/ies that
the other party may hereafter specify in writing or be known to the bank as the new address of the other party/ies.
59. Separability Clause. If any one or some of the provisions in this AGREEMENT or documents
executed in connection herewith shall be declared invalid, illegal, or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or
impaired.
60. Stipulation on address of CLIENT/S. All correspondents relative to this AGREEMENT, including
demand letters, summons, subpoenas or notifcation of any judicial or extrajudicial actions shall be sent to
the CLIENT/S at the address given above or at the address that may hereafter be given in writing by the
CLIENT/S to the BANK, and the mere act of sending any correspondence by mail or personal delivery to
the said address shall be valid and effective notice to the CLIENT/S for all legal purposes, and the fact
that any communication is not actually received by the CLIENT/S or that it has been returned unclaimed
to the BANK, or that no person was found at the address given, or that the address is fctitious, or cannot
be located, shall not excuse or relieve the CLIENT/S from the effect of such notice.