Memorandum Of Agreement Blank Form

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.: ________________ Issued at: _______________ Issued on: _______________

CTC No.: ________________ Issued at: _______________ 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. _____________ Book No. ____________ Series of 2008

NOTARY PUBLIC