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Standard PN For Corporation - Aug2021
Standard PN For Corporation - Aug2021
PROMISSORY NOTE
No. _______________
FOR VALUE RECEIVED, ______________________________, a _______________ duly organized under Philippine laws, with
principal office at ______________________________________________________ (the “Borrower”), promises to pay to the order of SME
Impact Credit (SME-ICC) Corp. (the “Lender”) at its office located at 778-C Sumulong Highway, Barangay Mayamot, Antipolo City, Rizal
Province, Philippines, the sum of Philippine Pesos: ______________________________________________ (Php____________), together
with interest thereon at the rate of _____________ (___%) per month, in _________ (__) monthly amortizations beginning on
______________ and every month thereafter until _____________ (the “Loan”). The Borrower hereby agrees that all unpaid or late
amortizations shall be charged a penalty at the rate of three per cent (3%) per month from the date of default until full payment thereof. The
Borrower agrees that the interest and penalty shall continue to be computed and collected by the Lender even after maturity of this Note and
until full payment of the unpaid amortizations.
The Borrower further agrees to pay to the Lender a one-time service fee equivalent to ___ per cent (__%) of the amount of this
Note and to shoulder the cost of documentary stamp tax and notarial fee due on this Note, all of which may be deducted by the Lender from
the proceeds of the Loan.
The purpose of the Loan covered by this Note is: ________________________________________________________. Payment
of this Note shall be secured by: __________________________________________________________________________.
The Borrower hereby agrees that the rate of interest herein may be increased or decreased by the Lender during the term of this
Note if there is/are change(s) in the interest rate prescribed by law or circulars of the Monetary Board or SEC, or there is/are change(s) in
the Lender’s cost of funds or maintenance of the Loan as a result of exchange rate fluctuations or changes in the financial market. In such
event, the increase or decrease shall take effect on the amortization immediately following such notice; provided, however, that if the
Borrower disagrees to such interest rate adjustment, the Borrower shall have the right to pre-pay this Note in full, together with accrued
interest and penalties, within ten (10) calendar days from receipt of the notice. If the Borrower fails to pre-pay this Note as herein provided,
the Borrower shall be deemed to have agreed to the interest rate adjustment.
In case the Borrower fails to pay this Note or any amortization, when due, or if any of the Events of Default provided for in the
General Conditions for Granting of Loans dated ___________________ shall occur, the Lender may, at its option and by way of
acceleration, declare forthwith to be immediately due and payable the entire amount of this Note (i.e., all unpaid amortizations together with
the accrued interests and penalties thereon plus all amortizations not yet due or matured) by giving written notice thereof to the Borrower. In
case the Borrower fails to comply with such written notice, the Lender has the right to avail of any or all remedies allowed by law.
The Borrower hereby consents to the assignment/transfer of this Note by the Lender in favor of any funding entity or third party
without need of further notice and that the Borrower undertakes to adhere to the terms and conditions of such assignment or transfer.
The Borrower acknowledges that under existing Lender's policy, no gift, fee, commission or benefit in favor of any of the Lender's
officers or employees and/or any other person(s) is required as a condition for the approval of the Loan covered by this Note. The Borrower
undertakes to report to the Lender’s Management any violation, or any attempt leading to the violation of such policy by any of the Lender’s
officers or employees, or any other person. The Borrower further agrees that failure on its part to make such report to the Lender’s
Management without valid reason(s) shall be a ground for the Lender to declare the entire amount of this Note to be immediately due and
payable, including amortizations not yet due; provided, that written notice to that effect shall be served by the Lender to the Borrower.
Should this Note be signed also by a co-maker or co-borrower, the Borrower and such co-maker or co-borrower shall be jointly
and severally liable to the Lender for the payment of this Note.
Notice of demand, presentment, dishonor and protest are hereby waived. Acceptance by the Lender or holder hereof of any
amortization, or any portion thereof, after due date shall not be considered as extending the time of payment of any of the aforementioned
amortizations or as a modification of any of the conditions thereof.
Should it become necessary to collect this Note through legal action, the Borrower and the co-maker or co-borrower (if any) agree
to pay, jointly and severally, an amount equivalent to twenty per cent (20%) of the total amount due for and as attorney’s fees. The Borrower
further agrees that any legal action which may arise from this Note shall be brought in the proper court located in the Lender’s principal
office.
Application of Payments. – The Borrower agrees that all payments received by the Lender shall be applied by the latter in the
following manner and order:
1. Litigation/Foreclosure and other similar costs of collection, plus interest thereon, if any:
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2. Attorney’s fees;
3. Advances for realty taxes, insurance premiums, repairs, preservation and improvements, etc. on the collateral plus interest
thereon, if any;
4. Other advances, assessments and levies paid by the LENDER for the account of the BORROWER and/or third party
Mortgagor, if applicable, plus interest;
5. Penalties;
6. Interest; and
7. Principal.
The Borrower agrees that this Note shall be governed further by the terms and conditions contained in the General Conditions for
Granting of Loans dated ___________________.
_____________________________________________________
Borrower
By:
__________________________ __________________________
__________________________ __________________________
NOTARIAL ACKNOWLEDGMENT
BEFORE ME, a notary public for and in the above-stated locality, personally appeared on ___________________, the following:
known to me and to me known to be the same person(s) who executed the foregoing instrument and he/she/they acknowledged to me that
the same is his/her/their free and voluntary act and deed and of the juridical entity he/she/they represent/s. This instrument, referring to a
Promissory Note, consists of two (2) pages including this page whereon the acknowledgment is written, and has been signed on each and
every page by the above-named authorized officer of the said juridical entity (Borrower) and witnesses.
WITNESS MY HAND AND SEAL on the date and at the place first above written.
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