Features of Negotiable Promissory Notes

Promissory Notes is a negotiable instrument of a commercial banks that contains an order for payment of money either
on demand or after a certain time.

1.All of the important information must be written necessarily like present value, maturity value, principal amount and interest rate
and other information.
2.The payee must sign and agree the agreement together with the maturity or the word “demand” if it is a demand instrument.
3.The payer trust account or deposit account number must identified By a payee in both Negotiable and non negotiable
instrument.
4.Securities of events and activity must be described in the instrument which is the repurchased agreement or a certificate of
assignment and participation of resource.
5.Make sure signatures of both the borrower and the lender are included on the promissory note. For a promissory note to be
legally enforceable, the document needs the signature of each party.
6.All of the instrument shall be identified specifically if it is original just put a word “original” and if the instrument is a copy just
bear the word “file copy” or “duplicate”.
• OTHER BORROWINGS

• Is specified to a person, without duplication, all indebtedness of such person for borrowed money or for the deferred purchase price of properly or services.
• The instruments that prior to the issuance of commercial paper is must be registered with the SEC, and there issuance must be guided in a following pertinent requirements:
• • The minimum maturity value of each commercial paper shall be P30,000

• • It required that the commercial paper shall be issued only in one person, two or more persons or accounts are not valid.

• • A stipulation in commercial papers providing predomination as a right or option of the lender shall not be allowed. However, the issuer or borrower may, by express stipulation in the commercial paper, reserve the right to redeem all or part of its obligation at any time before maturity of the paper.

• • The selling agent that who holds the commercial paper must not exceed 5% of its net worth beyond the normal applicable single borrowers limit.
• Indicate of bonds issued by banks, said bonds must have the following features.
• • In the bond certificate issued the name of the trustee together with the trust agreement must be indicated.

• • If there's any bond registration number assigned by the securities and exchange commissions and the expiry date it must be indicated, stamped on the face of the bond certificate issued.

• • Bonds may be issued at face value, as a discount or premium, but their lowest denomination shall be 20,000 pesos

• • The bonds shall be four years minimum term without optional redemption before the fourth year.
OTHER BORROWINGS

Is specified to a person, without duplication, all indebtedness of such

person for borrowed money or for the deferred purchase price of properly
or services. The instruments that prior to the issuance of commercial
paper is must be registered with the SEC, and there issuance must be
guided in a following pertinent requirements:

1.The minimum maturity value of each commercial paper shall be P30,000

2.It required that the commercial paper shall be issued only in one person, two
or more persons or accounts are not valid.
3.A stipulation in commercial papers providing predomination as a right or
option of the lender shall not be allowed. However, the issuer or borrower may,
by express stipulation in the commercial paper, reserve the right to redeem all
or part of its obligation at any time before maturity of the paper.
4.The selling agent that who holds the commercial paper must not exceed 5%
of its net worth beyond the normal applicable single borrowers limit.
Indicate of bonds issued by banks, said bonds must have
the following features

1.In the bond certificate issued the name of the trustee together with the trust agreement must be
indicated.
2.If there's any bond registration number assigned by the securities and exchange commissions
and the expiry date it must be indicated, stamped on the face of the bond certificate issued.
3.Bonds may be issued at face value, as a discount or premium, but their lowest denomination
shall be 20,000 pesos
4.The bonds shall be four years minimum term without optional redemption before the fourth
year.