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COLLECTION AGENCY AGREEMENT

KNOW ALL MEN BY THESE PRESENTS


This
AGREEMENT
made
and
_____________________by and between:

entered

into

this____________________in

__________________________________an entity duly existing under and by virtue of Philippine


laws with office address at________________________________________
represented herein by its duly authorized_______________________________________
hereinafter referred to as the AGENCY
-and_______________________________________a corporation exisring under and by virtue of
Philippine laws with address at_______________________________________
represented herein by_____________________________________hereinafter referred to as the
BANK
WITNESSETH, That
WHREREAS the AGENCY is engaged in the business of collecting accounts through judicial and
extra-judicial means;
WHREREAS the AGENCY has offered its services for the collection of receivables;
NOW,THEREFORE ,for and in consideration of the foregoing premises and the mutual covenants
herein stipulated the AGENCY hereby undertakes to collect and assist in the collection of money
claims which the BANK has against its borrowers on a NO RESULT NO PAY basis subject to
the following terms and conditions:
1. 1.No Result No Pay basis means that the AGENCY shall not collect any fee or
commission from the BANK unless collection of the receivables is actually made,
whether partially or in full .Collection here refer only to cash collections, whether paid
to the AGENCY or to the BANK .However the AGENCY may collect commission on
payments in dacion only upon the conversion of the property to cash. All offers for
dacion in payment shall be referred to and handled by the BANK.
2. .In endorsing accounts to the AGENCY ,the BANK shall deliver to the AGENCY
Statements of Account and all other pertinent documents evidencing the
indebtedness of the borrower as the basis for effecting collections. The AGENCY
shall not collect from the borrowers any other amount ,fee or charge except those
stated in the Statements of Account;
3. The AGENCY guarantees to exert all extra-judicial remedies to effect collection
within a period of NINETY(90)days from the date of endorsement hereinafter called
Collection Period and should there be no positive result whatsoever within the
Collection Period, such as partial payment ,the AGENCY shall return such account
to the BANK upon the latters demand. Should there be positive contact with the
borrower the said Collection Periods shall be deemed renewed.
Positive contact shall mean personal communication with the borrower where the
said borrower executes a written promise to pay for a period not exceeding
one(1)month.

The AGENCY shall submit to the BANK a monthly status report of all such accounts
which shall include the date of endorsement and the date of expiration of the
collection period of the accounts covered by the report .The AGENCY shall likewise
render an opinion-status report as often as may be necessary, on whether or not
extrajudicial remedies or action to effect collection is still effective. If an account be
found to be uncollectible ,the AGENCY shall return the account for whatever
disposition the BANK may so desire ,indicating therein the reason and/or findings for
such particular account.
4. The collection of all accounts receivables under this agreement shall be under the
direct management ,control and supervision of the AGENCY which shall be
independent of, but directly responsible to the BANK as to the results of collection
,for such purpose ,the BANK authorizes the AGENCY to negotiate such payment
scheme or arrangement enunciated under the payment policies of the BANK ,but
subject to the condition that any waiver or condonation of any amount due and
owing to the BANK shall be with prior consent and approval of the BANK. The BANK
may accept any payment from ,or enter into any kind of payment arrangement with
the borrowers relative to any account endorsed or turned over to the AGENCY,
provided the AGENCY is promptly informed of any such payment and likewise
advised of any payment arrangement prior to effecting the same .Such payments
made directly to the BANK shall be credited to the AGENCY as part of its collection
recovery;
5. .By way of compensation, the BANK shall pay to the AGENCY a contingent
collection fee at the rate of__________of the actual amount collected, inclusive of all
charges ,commissions and other expenses the AGENCY may incurred.
6. In case of recoveries or collection through voluntary surrender of properties (dacion
en pago) by any borrower, the price at which the property is actually sold to a third
party shall be considered actual collection upon acceptance of the BANK of said
properties .Commission shall be paid to the AGENCY only upon conversion of the
properties to cash.
7. .The AGENCY shall advise the BANK within the day of any receipt of collection in
cash or in check and shall remit the same to the BANK in full(gross amount
collected)within the same day the cash collection was made. However where
circumstances and distance will not allow remittance of collection within the same
day ,the AGENCY may remit the particular collection to the BANK on the next
banking day.
The daily collection to be remitted shall be summarized by the AGENCY and
remitted to the Branch Cashier, together with the duplicate copy of the provisional
receipts.
The BANK on the other hand shall promptly submit to the agency a report/listing of
all accounts for which payments were made directly to the BANK by the borrower.
8. Judicial prosecution of collection cases up to its successful conclusion shall be an
undertaking of the BANK, however on a case-to-case basis ,the BANK may opt to
assign this activity to the AGENCY under a separate commission scheme or pay
arrangement.
9. .In case of court litigation arising out of this contract, the parties expressly agree to
submit
themselves
to
the
jurisdiction
of
the
proper
courts
in________________________

The party at fault expressly agrees to pay attorneys fees in the amount of
P10,000.00 or 25% of the total amount due whichever is higher and all amounts due
to either party shall earn interest at the rate of one(1) per centum per month from the
due date thereof.
10. This agreement shall have an initial life of one(1) year from the date of its effectivity
and shall be deemed renewed automatically from year to year unless a written
notice of renegotiation or termination is served by one party to the other within
thirty(30)days immediately prior to the expected date of termination; provided
however ,that in case this agreement shall no longer be renewed ,the AGENCY shall
have the option to retain accounts receivables with pending payment arrangements
with it until the same are fully liquidated, but only for the remainder of the collection
period, unless authorized by the BANK to continue even beyond the said period.
11. .The AGENCY shall issue in favor of the bank a performance bond in the amount of
P________________to guarantee compliance by the AGENCY of all its obligations
under this contract.
12. .This contract shall take effect upon signing of both parties.
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on this____
Day of_____________________ at ________________________

AGENCY
By:
________________________

BANK
By:
_____________________

SIGNED IN THE PRESENCE OF:

_________________________

____________________

(ACKNOWLEDGEMENT)
REPUBLIC OF THE PHILIPPINES
______________________________S.S.
Before me, a Notary Public for and in the city of_________________________________
Philippines personally appeared___________________________________with Community Tax
Certificate No._________________issued on_____________________
At______________________ and ___________________________________with
Community Tx Certificate No.___________________issued on__________________at
______________________known to me and 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 and that of the entities they represent.
WITNESS MY HAND AND SEAL, this _________day of________________________
At___________________________________,Philippines.
Doc. No.________
Page No.________
Book No.________

NOTARY PUBLIC