November 4, 2021

MR. JORGE GONZALES

123 Ledesco Village, La Paz
Iloilo City, Philippines 

Subject: Reply to the Demand Letter of Jorge Gonzales

Dear Mr. Gonzales,

We have received your letter dated November 1, 2021 with the following demands:

1) Funding of check issued to Mr. Hison

2) Return of the proceeds of the Foreign Currency Deposits under the name of Jorge
Gonzales
3) Payment of damages for unjust dishonor of checks issued by Jorge Gonzales

Below are the explanations on such issues:

1) The Borrower was considered in default or failed to perform the obligation, the
BANK may terminate the Credit Line as provided under Section 17 of the COHLA. With
that, Borrower Jorge Gonzales cannot avail the credit line facility as long as the
Borrower’s account was tagged or identified as deferred or default account by the Bank
due to unpaid monthly loan dues against your three (3) outstanding loans covered by
three (3) promissory notes. Thus, the check you issued to Mr. Hizon amounting to Php
2,500,000.00 drawn against the credit line cannot be accommodated and funded.
2) The Foreign Currency Deposit (FCD) of USD 25,000 that secures the credit line
availments through the execution of the Deed of Assignment cannot be lifted since the
Borrower’s account is in default. Proceeds of the FCD can only be lifted and returned
upon settlement of outstanding principal, interests and penalties.
3) The Bank stands firmly that the dishonor of checks issued by Jorge Gonzales drawn
against the credit line is not unjust, and therefore, payment of damages is inappropriate.

In order to avoid inconvenience, please pay the past due amount against the 3 outstanding loans
as you are solidarily liable in the performance of such obligations or commitments.

Thank you.
FdNieles
Feliciano D. Nieles
Loan/Account Manager