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1.

REMOVAL, TRANSFER, ENCUMBRANCE OR SUBSTITUTION OF MORTGAGED PROPERTY – The MORTGAGOR shall not sell,
assign, mortgage, encumber or otherwise dispose of the property/ies herein mortgaged or any part hereof, nor take any
replacements and/or substitution thereto without the prior consent of the MORTGAGEE. Neither shall the MORTGAGOR
remove or transfer the improvements now existing or which may hereafter be made thereon without the written consent of
the MORTGAGEE. Failure of the MORTGAGOR to comply with this undertaking shall constitute a violation of this mortgage.

ULAMA Restriction on Sale, Lease and Mortgage. The Mortgagor shall not sell, dispose, transfer, lease out,
encumber or further mortgage the Mortgaged Property without the prior written consent of the Bank/Financial
Institution.

2. LIENS OF AND POSSESSION BY THIRD PARTIES – Notice is hereby given to the whole world that the MORTGAGEE
will not be responsible for, nor can the property, or any part thereof, be held under lien of any indebtedness
whatsoever outside the obligations herein secured and the MORTGAGOR agrees not to pass possession and/or
ownership of the property to another party for any purpose whatsoever.

ULAMA g) Subsequent Liens on Mortgaged Property. The Borrower and Mortgagor shall immediately notify the
Bank/ Financial Institution of any lien, levy on attachment or execution, claim or demand upon the Mortgaged
Property and shall immediately secure the release and discharge of such lien, levy on attachment or execution or
claim.

3. CHECK DEFERMENT/ STOP PAYMENT - Check deferment /stop payment request shall not be valid unless made in
writing and duly acknowledge by the Binhi Rural Bank, Inc. Personnel three (3) days prior to the due date of
amortization. BRBI shall not be held liable for checks deposited/transacted without notices received from the
borrower/s.

4. AUTHORITY TO DEBIT FROM DEPOSIT - In case of default of any loan amortization when due, the borrower
hereby authorized the Binhi Rural Bank, Inc. to debit the default amount from my/our savings deposit in full/partial
settlement of my/our delayed amortization.

ULAMA 3. Payments. (DISCRETIONARY???)


a) Without Counterclaim. All payments due to the Bank/Financial Institution under this Agreement, whether for
principal, interest, penalty, charges, fee or otherwise shall be made without deduction set-off or counterclaim.

5. PRE-TERMINATION OF THE CONTRACT - Should the borrower wish to pre-terminate this Contract of Loan for
whatever reason, the borrower shall notify the BINHI RURAL BANK, INC. personnel in writing at least sixty (60) days
in advance of the pre-termination date, and shall simultaneous therewith, pay the BINHI RURAL BAN, INC. a pre-
termination penalty of in an amount equivalent to _____________ interest of the principal amount or outstanding
obligation.

ULAMA 3. Payments.
b) Prepayment. Should the Borrower or the Mortgagor disagree with the interest rate provided on Interest Fixing
Date or any interest rate adjustment as provided above, the Borrower or Mortgagor may prepay the Loan in full
subject to the following conditions: a) The Borrower/ Mortgagor shall give at least thirty (30) days irrevocable prior
written notice of the amount and date of prepayment; b) For loans with multiple interest payment dates, each
prepayment shall be made on an interest payment due date; and c) Any prepayment shall '-be subject to payment
of the applicable service fee set out in the Disclosure Statement.
6. WAIVER - Republic Act no. 1405. I/We hereby waive my/our rights under Republic Act. No. 1405 also known as
the Law on Secrecy of Bank Deposits.

Republic Act. No. 10173. I/We hereby waive my/our privilege under Republic Act No. 10173 re: Data Privacy Act of
2012 and other laws pertinent to privacy of personal information and accordingly hereby authorize the Binhi Rural
Bank, Inc. (BRBI) duly representative to inquire into my bank deposit account with any bank or financial institution
for purposes of determining the veracity of my deposition and qualification.

Borrower hereby acknowledges and consents to allow BINHI RURAL BANK INC. to hold as additional loan security
any chattel or real estate in its possession until all accounts of the borrower, even if by different promissory notes
are fully settled or paid.

ULAMA 12. Waiver of Confidentiality. The Borrower and Mortgagor hereby waives his/ its rights under applicable
laws on bank secrecy and information security existing or may hereafter be enacted, such as RA 1405 (The Law on
Secrecy of Bank Deposits), RA 6426 (Foreign Currency Deposit Act), RA 8791 (The General Banking Law), RA 10173
(Data Privacy Act), and authorizes the Bank Financial Institution: (a) pursuant to BSP Circular No. 472 Series of 2005
as implemented by BIR Revenue Regulation RR-4 2005, to verify with the Bureau of Internal Revenue (BIR) (or such
other taxing authority that may substitute it) in order to establish authenticity of the annual income tax returns and
accompanying financial statements and documents or information submitted by the Borrower / Mortgagor, (b) to
inquire into any of the deposit accounts or properties maintained by the Borrower or Mortgagor with the
Bank/Financial Institution, its parent, subsidiaries or affiliates for the purpose of implementing the Automatic Debit
Authorization or the set-off provisions, and (c) obtain from or disclose to its parent, subsidiaries, affiliates, or credit
bureau any information regarding the Borrower or the Mortgagor, the Loan, this Agreement, or any Secured
Obligations, as the Bank/Financial Institution rnay deem necessary to exercise its rights under this Agreement or as
may be allowed or required by applicable laws, rules and regulations. The Borrower/ Mortgagor also hereby
authorizes the Banl</ Financial Institution to request information on the status of any court case to which itl he is a
party. Pursuant to RA 9510 (Credit Information System Act), the Borrower/Mortgagor finally authorizes the
submission of basic credit data in connection with any credit availment from the Bank Financial Institution to the
Credit Information Corporation (or its successor entity) and authorize the latter to provide the same information to
the BSP.

7. GOVERNMENT CHARGES – The MORTGAGOR shall, from time to time or when due, duly pay and discharge all
taxes, licenses, permits, assessments and other government charges lawfully imposed upon, or assessed against
the property/ies hereby mortgaged, or upon any part thereof, the lien of which might or could be superior to the
lien of this mortgage. In the event MORTGAGOR fails to pay such charges, the MORTGAGEE, may, at its option,
and without prejudice to the right to declare MORTGAGOR, in default, pay such charges for the account of the
MORTGAGOR and that any money so disbursed by the MORTGAGEE shall immediately become due and payable on
demand and shall bear interest from the date of expenditure at the rate of 20% per annum until fully paid.
Pending full payment, such sums advance by the MORTGAGEE, including interest shall likewise be secured by this
Real Estate Mortgage.

ULAMA. 5. The Mortgaged Property.


c) Realty Taxes, Dues and Assessments. The Mortgagor shall pay all the realty taxes, government charges and
association dues and such other assessments or charges due on the Mortgaged Property not later than ten (10)
days before the due date and deliver official receipts and proof of payment to the Bank/Financial Institution within
the same period.
8. INSURANCE – The MORTGAGOR agrees that it will cause the existing improvement/s on the property/ies herein
mortgaged to be insured against damage by accident, fire, flood and earthquake for a period of one (1) year from
date hereof and every year thereafter until the mortgage obligation is fully paid with an insurance company or
companies acceptable to the MORTGAGEE in an amount not less than the outstanding balance of the mortgage
obligation; that it will make all losses, if any, under such policy or policies, payable to the MORTGAGEE or its
assigns as its interest may appear and deliver such policy or policies together with official receipt/s evidencing
payment of premiums to the MORTGAGEE forthwith. The said MORTGAGOR further covenants and agrees that in
default of its effecting or renewing such insurance and delivering the policies and official receipts evidencing
current premium payment so endorsed to the MORTGAGEE within five (5) days after the execution of this
mortgage or the expiry date of insurance, the MORTGAGEE may, at its option, and without prejudice to its right to
declare MORTGAGOR in default, secure such insurance cover or obtain such renewal for the account of the
MORTGAGOR, and that any money so disbursed by the MORTGAGEE shall immediately become due and payable
without need of notice or demand with interest from the date of expenditure at the rate of 20% per annum until
fully paid. Pending full repayment, such sums advanced by MORTGAGEE, including interest, shall likewise be
secured by this Real Estate Mortgage. In case of damage to the mortgaged property/ies, the MORTGAGOR hereby
irrevocably appoints he MORTGAGEE as his attorney-in-fact with full power and authority to file, follow-up,
prosecute, compromise or settle insurance claims, to sign, execute and deliver the corresponding papers, receipts
and documents to the Insurance Company as may be necessary to prove the claim, and to collect from the latter
the proceeds of insurance to the extent of its interest.

ULAMA 5. The Mortgaged Property.


b) Fire and Other Insurance. The Borrower and Mortgagor shall also secure and maintain, until the full payment of
the Loan, acceptable insurance against risks of fire, flood and earthquake in the amount of the Loan or in the sum
not less than the appraised value of the improvements. The insurance policy on the Mortgaged Property shall be
endorsed to and delivered with the Bank/ Financial Institution as beneficiary. The Borrower and the Mortgagor
shall also submit proof of payment of premiums and renewal of said policy no later than ten (10) days before the
due date. For construction loans, the Mortgagor shall also secure acceptable contractor's all risk insurance policy
with the Bank/ Financial Institution as beneficiary. Should there be any insurance policy that was not endorsed to
the Bank/Financial Institution, the Borrower and Mortgagor agree and hereby appoint the Bank/Financial
Institution as his/its Attorney-in-Fact with full authority to collect any indemnity or claim due thereon in case of loss
of the Mortgaged Property and apply such proceeds thereof in fulI or partial payment of the Loan.

9. MAINTENANCE OF THE MORTGAGED PROPERTY – The MORTGAGOR shall keep and maintain the
improvement/s on the mortgaged property/ies, if any, herein mortgaged in the same usable and good order and
condition as of the date of this mortgage, expending ordinary wear and tear, and the MORTGAGEE or its duly
authorized representative shall have at all times the right to inspect the mortgaged property/ies and its
improvements built thereon, if any. In the event of default, MORTGAGOR agrees to surrender possession of the
improvements built thereon and/or the mortgaged property to the MORTGAGEE in said condition hereby agreeing
to be liable to the MORTGAGEE for any damage or deterioration which said property/ies may have suffered from
other than ordinary wear and tear thereof incidental to a reasonable use of the same.

ULAMA. 5. The Mortgaged Property.


a) Good Condition, Repairs and Works. The Borrower and Mortgagor shall maintain the Mortgaged Property in
good condition, undertake and bear the cost of all necessary works and repairs thereon to keep it in perfect state of
safety, maintenance and sanitation. Should the Borrower or Mortgagor fail to do so, the Bank/ Financial Institution
may, at its option, undertake such works and repairs, advance the cost thereof.
10. DAMAGE AND SUBSTITUTION OF SECURITY – Should the mortgaged property/ies and its improvements built
thereon, if any be destroyed or damaged from any cause whatsoever, the MORTGAGEE shall have the right to
declare the whole amount of the principal and interest secured by this mortgage immediately due and payable and
may proceed at once to foreclose this mortgage, but if the MORTGGAGOR shall give additional and or substitute
security to the satisfaction of the MORTGAGEE to cover the balance of the amount which may at any time be
owing to the MORTGAGEE, then in that case the MORTGAGEE may grant a reasonable extension of time to the
MORTGAGOR for the payment of its obligation.

ULAMA 5. The Mortgaged Property.


e) Collateral Deterioration/ Expropriation. In case the Mortgaged Property should diminish in value, be destroyed,
or deteriorate by a considerable amount for any cause including/orce majeure, or be the subject of expropriation
proceedings in whole or in part, the Bank/ Financial Institution shall have the option to demand that the Borrower/
Mortgagor immediately pay the Loan in full or to provide additional collateral or security acceptable to the
Bank/Financial Institution.

11. DEFAULT – In case the MORTGAGOR:

(a) fails to pay any of the installment or other sum which are due or maybe due now or in the future to
the MORTGAGEE and under the promissory note or other instrument of indebtedness, or

(b) violate or failed to perform any of the terms and conditions of this agreement and the said promissory
note, or

(c) in the event of MORTGAGOR’s bankruptcy, insolvency, receivership, levy on execution of his/its
property/ies, garnishment or attachment, or in case of conviction for a criminal offense by final judgment
carrying with it the penalty of civil interdiction or any cases covered by Article 1198 of the New Civil Code,
or

(d) should the mortgage property/ies be destroyed or damaged from any cause whatsoever,

then the MORTGAGEE shall have the right, at its option to declare the entire obligation due and payable, and may
likewise at its option, foreclose this mortgage or takes any legal action to enforce collection of the obligation
hereby secured, and the MORTGAGOR hereby waives reimbursement of all amounts heretofore paid by him to the
MORTGAGEE.

12. ATTORNEY’S FEES AD COSTS – In case of breach or default by the MORTGAGOR of any of the terms and
conditions of this agreement and it is placed in the hand of an attorney, an additional sum equal to thirty percent
(30%) of the total sums due thereon, which shall not be less than Ten Thousand Pesos (P10,000.00) as attorney’s
fees, plus an additional sum equivalent to twenty-five percent (25%) of the total sum as liquidated damages, in
addition to costs and other expenses of litigation, and which sums shall be added to the principal amount of which
this mortgage is given security, and shall become part thereof and deemed secured by this mortgage.

ULAMA. 9. Attorney's Fees and Costs of Enforcement. In case the Bank/ Financial Institution should engage the
services of counsel to enforce its rights under this Agreement, the Borrower/ Mortgagor shall pay an amount equal
to ten (10) percent of the outstanding Loan and Secured Obligations which in no case shall be lower than
P50,000.00. The Borrower/ Mortgagor shall likewise be liable for and bear the costs of legal fees and expenses and
expenses entailed in the foreclosure, collection and,/or enforcement of this Agreement.
13. EXPENSES OF JUDICIAL RECOVERY OF ATTACHMENT – If the MORTGAGOR shall fail or refuse to deliver the
possession of the property/ies herein mortgaged to the MORTGAGEE, as provided above, thereby compelling the
MORTGAGEE to institute action for attachment or any other appropriate action for the purpose of recovering
possession of said property/ies, then the MORTGAGOR shall pay the MORTGAGEE the costs and all expenses
incurred in relation therewith, in addition to the expenses/charges stipulated elsewhere in this mortgage such as
attorney’s fees and liquidated damages, and the payment of such expenses shall likewise be secured by this
mortgage.

14. FORECLOSURE – The MORTGAGEE shall have the option of selling the mortgaged property/ies either at public
or private sale at the city/municipality or at the capital province where they are situated at the time, or at any
city/municipality where the MORTGAGEE may have a branch office, or at Cagayan de Oro City, the MORTGAGOR
hereby waiving all rights to any notice of such sale.

ULAMA. 17. Venue. Any legal action arising under or by virtue of this Agreement, other than foreclosure which shall
be filed in the proper courts where the property is located, shall be instituted exclusively in the proper court of the
place where this Agreement is executed.

15. WAIVER OF PERIOD AND NOTICE – The MORTGAGOR hereby expressly waives the terms of thirty (30) days or
any other terms granted by the laws as the period which must elapse before MORTGAGEE shall be entitled to
foreclose this mortgage, it being expressly understood and agreed that MORTGAGEE may foreclose this mortgage
at any time upon default of MORTGAGOR as herein above provided. In case of foreclosure sale, the MORTGAGOR
waives all rights to notice as to the date, time and place of sale.

ULAMA. 8. Correspondence. All correspondence and written notices shall be sent to the given address of the
Borrower or Mortgagor. The failure to receive such correspondence or if the address given is fictitious or cannot be
located, shall not excuse or relieve the Borrower and the Mortgagor from the effects of such notice.

16. MORTGAGEE ENTITLED TO BID – In case of sale at public auction of the property/ies herein mortgaged or any
part hereof, MORTGAGEE shall be entitled to bid for the property so sold, or for any part thereof, to buy the same
and to have the amount of its bid applied to the payment of the obligation secured by this mortgage without
requiring payment in cash of the amount of such bid.

17. POWER OF ATTORNEY FOR CERTAIN ACTS – Effective upon default, as provided herein, or in case of damage or
destruction of the mortgaged property/ies and in addition to the remedies stipulated herein, the MORTGAGEE is
hereby appointed attorney-in-fact of the MORTGAGOR with full powers and authority, to take actual possession of
the mortgaged property/ies, to remove, sell or dispose of the mortgaged property/ies or take any legal action that
may be deemed necessary; to lease any of the mortgaged property/ies and collect rents thereof, to execute bills of
sale, lease or agreements that may be deemed convenient to make repairs or improvements on the mortgaged
property/ies and pay the same; and perform any other act which the MORTGAGEE may deem convenient for the
proper administration of the mortgaged property/ies without the participation of the MORTGAGOR, under such
terms and conditions as the MORTAGEE, as attorney-in-fact, may consider fair and reasonable. The payment of
any expenses advanced by the MORTGAGEE or its assigns in connection with the purposes indicated therein is also
secured by this mortgage. Any amount received from the sale, disposal or administration by virtue of this power
and applied by the MORTGAGEE to the satisfaction of the obligation hereby secured is hereby ratified by the
MORTGAGOR.
ULAMA. 5. The Mortgaged Property.
h) Power of Attorney. ln case of an event of default, the Bank/Financial Institution is likewise appointed by the
Borrower and Mortgagor as Attomey-in-Fact, with full power of substitution and expressly authorized: [i] to take
actual possession of the Mortgaged Property without need of court order in case of loss or damage to the
Mortgaged Property; [ii] to sell and dispose of the Mortgaged Property and in connection therewith execute and
deliver the necessary deed of conveyance in order to vest full and absolute title to the purchaser thereof; [iii] to sell
and dispose of the Mortgaged Property under Act 3135 as amended; [iv] to collect all rent due on the Mortgaged
Property and apply such rent to the payment of the Loan and the Secured Obligations; and [v] to perform such
other acts of administration and management of the Mortgaged Property. The authorities herein granted are
coupled with interest and are irrevocable.

18. CUMULATIVE REMEDIES – The remedies of the MORTAGEE under the powers hereby conferred upon shall be
and are in addition to and cumulative with such rights and of actions as the said MORTAGEE or its assigns may
have in accordance with the present of any future laws of the Philippines

19. RECOVERY OF DEFICIENCY – In case the amount realized from sale of the mortgaged property is insufficient to
cover the total outstanding obligation of the MORTGAGOR, it is expressly agreed that the MORGAGOR shall fort
with pay the balance to MORTGAGEE. In case of its failure to do so, MORTGAGEE may bring suit for the recovery
thereof.

20. VENUE – The payment herein mentioned whether covered by notes or not, are payable at the office address of
the MORTGAGEE or its assignee; and in case of litigation arising out of the transaction that gave rise to this
contract, complete jurisdiction is given the proper court of the City of Cagayan de Oro or any proper court within
Misamis Oriental, or any court of the city, province, or municipality where the holder/mortgagee has a branch
office, at the option of the holder/mortgagee, waiving for this purpose, any other proper venue.

ULAMA. 17. Venue. Any legal action arising under or by viftue of this Agreement, other than foreclosure which shall
be filed in the proper courts where the property is located, shall be instituted exclusively in the proper court of the
place where this Agreement is executed.

21. REGISTRATION OF MORTGAGE – The MORTGAGOR undertakes to work for and obtain, with reasonable
dispatch, the registration of this mortgage with the Real Estate Mortgage Registry necessary to make this
mortgage valid, binding, and effective, even as against third persons, it being expressly understood that all fees
and other expenses incident thereto shall for the account of the MORTGAGOR. This is without prejudice to the
right of the MORTGAGEE to register the mortgage if it so desires, with all fees and other expenses to be for the
account of the MORTGAGOR. If this mortgage cannot be registered in the corresponding Registry of Deeds, the
obligation herein secured shall immediately become due and payable and considered in default.

22. EXPENSES OF THE MORTGAGE – It is agreed that all expenses, if any, in connection with the preparation and
registration of this mortgage, as well as the cancellation of the same, shall be for the account of the MORTGAGOR.

23. APPLICATION OF PAYMENTS - The MORTGAGOR waives its rights under Art. 1252 of the Civil Code of the
Philippines (Republic Act No. 386) to designate the application of its payments and authorizes the MORTGAGEE or
its assigns to apply such payment to either its aforementioned obligation under the promissory note or to any of
its existing obligations of whatever nature to the MORTGAGEE or its assigns at the latter’s discretion.
24. NON-WAIVER BY MORTGAGEE-ASSIGNEE – Any failure or delay on the part of the MORTGAGEE in exercising
any right or power hereunder shall not operate as a waiver thereof, nor shall a single partial exercise of such right
or power preclude any other further exercise thereof or the exercise of any right or power hereunder. No
modification or waiver of any provision of the Agreement of the Promissory Note and no consent of the
MORTAGEE to any departure therefrom shall in any event be effective unless the same shall be in writing, and then
such waiver or consent shall be effective only in the specific instance and for the purpose for which it is given.

25. ASSIGNMENT – The MORTGAGEE may assign or transfer its right under this Agreement without any further
acts, approval or notice to the MORTGAGOR, the latter hereby given its express consent.

ULAMA. 15. Assignment. The Bank/ Financial Institution shall have the right to assign or transfer its rights and
obligations under this Agreement. It reserves the right and is authorized to sell, cede, transfer, securitize, sub-
participate, assign to or subrogate in favor of any person or entity its rights and interests in and to this Agreement,
the Loan and Secured Obligations. The Borrower and Mortgagor herein gives their consent to such assignment,
transfer or subrogation.

26. ADDRESS – All correspondence relative to this mortgage, including demand letters, summons, subpoenas or
notification of any judicial or extrajudicial actions shall be sent to the MORTGAGOR at the address that may
hereafter be given in writing by the MORTGAGOR to MORTGAGEE, and the mere act of sending any
correspondence by mail or by personal delivery to the said address shall be valid and effective notice to the
MORTGAGOR for all legal purposes, and the fact that any communication is not actually received by the
MORTGAGOR or it has been returned unclaimed to MORTGAGEE, or that the address is fictitious, or cannot be
located shall not excuse or relieve the MORTGAGOR from the effects of such notice.

ULAMA. 8. Correspondence. All correspondence and written notices shall be sent to the given address of the
Borrower or Mortgagor. The failure to receive such correspondence or if the address given is fictitious or cannot be
located, shall not excuse or relieve the Borrower and the Mortgagor from the effects of such notice.

27. SEPARABILITY CLAUSE – If any provision of this agreement is held invalid or contrary to law, the validity of the
other provisions hereof shall not be effected thereby.

28. EFFECTIVELY – The condition of this Real Estate Mortgage is such that if MORTGAGOR, its legal representatives,
executors, shall well and truly perform, or cause to be performed, all the covenants and agreements contained in
the promissory note and real estate mortgage herein and in such other obligations which the MORTGAGOR owes
or may hereafter owe to MORTGAGEE or Assignee whether direct, principal or secondary, as appears in the
accounts, books and records of the MORTGAGEE or Assignee, then this real estate mortgage shall be null and void;
otherwise, it shall remain in full force and effect and enforceable in accordance with law.