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 “CREDITOR”. and __________, of legal age, married to ______________________________, now and hereinafter called as the “DEBTOR”; who hereby stipulate, agree and bind themselves upon these terms and conditions: 1. On the part of the CREDITOR: (a.) That the CREDITOR lends money to the DEBTOR in an amount stated below on account of the latter’s employment with the former; (b.) That the CREDITOR lends money for the DEBTOR to buy a property with MONTEREY FARMS CORPORATION; (c.) That the CREDITOR agrees that the DEBTOR shall post a security to the loan through a REAL ESTATE MORTGAGE to be executed by the DEBTOR upon payment of the property bought from _______________ CORPORATION, description of which is stated below (d.) That the CREDITOR agrees that the amount lent is to be paid in installment, terms of which are stated below; (e.) That the CREDITOR shall release the security given by the DEBTOR upon payment of the full amount of loan; (f.) That the CREDITOR acknowledges the fact the DEBTOR is borrowing money in her personal capacity and that this agreement shall not bind the husband. 2. On the part of the DEBTOR: (a.) That the DEBTOR agrees to the terms and conditions of the loan stated below; (b.) That the DEBTOR enters this agreement in her personal capacity and this agreement will not bind the husband; (c.) That the DEBTOR acknowledges that the loan is granted by the CREDITOR on account of the former’s employment with the latter; (d.) That the DEBTOR shall use the full amount of loan to purchase the property from ______________________ CORPORATION within FIFTEEN (15) DAYS from the grant of loan, description of the property is stated below; (e.) That in case the DEBTOR shall not use the full amount loan or any portion of such amount, the
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DEBTOR shall pay in full the amount of loan to the CREDITOR without a need for demand. (f.) That the DEBTOR upon execution of the CONTRACT TO SELL or DEED OF ABSOLUTE SALE, whichever is executed first, between the DEBTOR and MONTEREY FARMS CORPORATION, the DEBTOR binds herself to execute voluntarily a DEED OF REAL ESTATE MORTGAGE in favor of the CREDITOR as a security for the loan, such DEED REAL ESTATE MORTGAGE shall be prepared by the CREDITOR; (g.) That in case the DEBTOR failed to comply with the terms of payment of the loan and the conditions of the DEED OF REAL ESTATE MORTGATGE, the DEBTOR shall voluntarily abandon and transfer the ownership of the property subject of the DEED OF REAL ESTATE MORTGAGE in favor of the CREDITOR free from all encumbrances. 3. Common and mutual terms and conditions, following: (a.) That the PARTIES agree to incorporate this MEMORANDUM OF AGREEMENT as an integral part of the DEED OF REAL ESTATE MORTGAGE on the subject property; (b.) That the PARTIES agree that failure to comply with the terms and conditions of this agreement shall result to automatic rescission of this MEMORANDUM OF AGREEMENT and all obligations shall be due and demandable without the need for demand. (c.) That the PARTIES agree that upon execution of the CONTRACT TO SELL or DEED OF ABSOLUTE SALE, whichever comes first, the DEBTOR shall execute a DEED OF REAL ESTATE MORTGAGE in favor of the CREDITOR covering the property described below: Registry of Deeds for the __________ Transfer Certificate of Title No. __________ 4. Now, therefore, for in and consideration of the foregoing conditions and the mutual covenants hereinafter, both parties herein mutually agree as follows; (a.) That the CREDITOR lends PHILIPPINE PESO: ONE MILLION FIVE HUNDRED THOUSAND ONLY (PhP 1,500,000.00) in favor of the DEBTOR; (b.) That the DEBTOR agrees to pay the loan amount in CASH or through SALARY DEDUCTION for ONE HUNDRED TWENTY (120) MONTHS in equal monthly installment of PESOS: SEVENTEEN THOUSAND ONLY (PhP 17,000.00), including interest, starting ____________, 2015 and 120 months of every 15th of the month thereafter; (c.) That the DEBTOR voluntarily agrees that in case of failure to pay the monthly installment of TWO (2) Page 2 of 4
MONTHS, the whole amount shall be due and demandable without the need for further demand with TWO PERCENT (2%) interest per month from the time of failure to pay; (d.) That in case the DEBTOR defaulted in payment for TWO (2) MONTHS, the CREDITOR may extra-judicially foreclose the property subject of the DEED OF REAL ESTATE MORTGAGE; (e.) That the DEED OF REAL ESTATE MORTGAGE is to be executed by the DEBTOR voluntarily and without the need for the demand to execute from the creditor, within FIFTEEN (15) DAYS from the execution of the CONTRACT TO SELL or DEED OF ABSOLUTE SALE between the DEBTOR and MONTEREY FARMS CORPORATION, whichever is executed first; (f.) That the DEBTOR agrees that in case the DEBTOR decides to sell the property subject of the DEED OF REAL ESTATE MORTGAGE, the CREDITOR shall have the right of FIRST REFUSAL before it can be offered to any other buyer by the DEBTOR. The CREDITOR agrees to communicate his decision on the RIGHT OF FIRST REFUSAL within SIXTY (60) DAYS from the notice of the DEBTOR of her intention to sell the subject property; (g.) That after the loan has been fully paid by the DEBTOR including interests and costs therein, this agreement will be terminated and will be considered null and void and the DEED OF REAL ESTATE MORTGAGE shall be cancelled in favor of the DEBTOR; (h.) That any PARTY who will violate any of the considerations contained in this agreement will be held liable for damages; (i.) 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 any bank and Financing Institution; (j.) 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; (k.) 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 _______ 2015 at __________________, Philippines.
_________________________ CREDITOR
_________________________ DEBTOR
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SIGNED IN THE PRESENCE OF: _________________________
_________________________
ACKNOWLEDGEMENT REPUBLIC OF THE PHILIPPINES) S.S. ________________________________) BEFORE ME, Notary Public for and in the _______________________, personally appeared the following persons who exhibited to me their respective government-issued identification cards as follows,
Name
Government Issued ID No.
Place of Issuance
Issue/Expir y Date
---known to me and to me known to be the same persons who executed the foregoing instrument, and acknowledged that they executed the same as their free act and deed. This instrument consisting of four (4) pages, including this page whereon the acknowledgment is written, has been signed by the parties and their witness on all the pages thereof. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on this ___ day of ___________ at __________________, Philippines.
NOTARY PUBLIC Doc. No. _______; Page No. _______; Book No. _______; Series of 2015
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