LOAN COLLATERAL AGREEMENT

This Loan Collateral Agreement (the "Agreement") is entered into on ______________,

by and between:

______________________, of legal age, married, Filipino citizen, and with residence and
postal address at ______________________________________ hereinafter called the “LENDER”;

______________________, of legal age, single, Filipino citizen, and with residence and
postal address at ______________________, hereinafter called the “BORROWER”.

LOAN DETAILS:

1. Loan Amount: The Lender agrees to lend the Borrower the principal sum of
______________________
2. Interest Rate: The loan shall accrue interest at the rate of seven (7%) per cent per annum.
Interest shall be calculated on the outstanding principal balance.
3. Repayment Terms:
a. The initial monthly payments amounting to ____________through post-dated
checks will be allocated towards the interest, starting on ____________
4. Collateral: As security for the repayment of the loan, the Borrower hereby grants the Lender a
security interest in the following collaterals: ______________________
The Borrower warrants that they have good and marketable title to the collateral and that it is
free from any liens or encumbrances.
5. Default: The Borrower shall be considered in default if any of the following events occur:
a. failure to make a timely payment;
b. breach of any other provision of this Agreement; and
c. insolvency or bankruptcy of the Borrower.
6. Remedies: In the event of default, the Lender shall have the right to declare the entire
outstanding balance due and payable and may enforce its security interest in the collateral.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the
laws of the state of Philippines, without regard to its conflict of laws principles.
8. Miscellaneous:
a. Any modifications to this Agreement must be in writing and signed by both parties.
b. This Agreement constitutes the entire understanding between the parties and
supersedes any prior agreements or understandings, whether oral or written.

IN WITNESS WHEREOF, the parties hereto have executed this Loan Collateral Agreement as of
the date first above written.

______________________ ______________________
Lender Borrower

ACKNOWLEDGMENT
(Based on the updated Notarial Rules)