Certificate of Full Payment of Loan - Template Form

CERTIFICATE OF FULL PAYMENT AND RELEASE OF LOAN OBLIGATION

KNOW ALL MEN BY THESE PRESENTS:

This Certificate of Full Payment and Release of Loan Obligation (the “Certificate”) is made, executed, and issued this ________, at ________, Republic of the Philippines, by:

________, of legal age, ________, ________ citizen, with residence and postal address at ________, and holding Tax Identification Number ________ (hereinafter referred to as the “Lender”);

WITNESSETH: That —

WHEREAS, on ________, the Lender and ________, of legal age, with residence and postal address at ________ (hereinafter referred to as the “Borrower”), executed a Loan Agreement (the “Agreement”), whereby the Lender extended to the Borrower a loan in the principal amount of ________ (₱________), together with interest at the rate of ________ per annum, and subject to the terms and conditions therein set forth;

WHEREAS, the Borrower has, on ________, fully and completely paid and settled the entire loan obligation, including the principal, all accrued interest, and any other charges due and demandable under the Agreement, in the total amount of ________ (₱________);

WHEREAS, the Lender desires to acknowledge such full payment and to issue this Certificate in conformity with Articles 1231, 1232, and 1240 of the Civil Code of the Philippines, which recognize payment or performance as a mode of extinguishment of obligations;

NOW, THEREFORE, for and in consideration of the foregoing premises, the Lender hereby certifies, acknowledges, and declares as follows:

1. Acknowledgment of Full Payment. The Lender hereby certifies and acknowledges that the Borrower has fully, completely, and unconditionally paid the entire loan obligation under the Agreement, comprising the principal, all accrued interest, penalties, and other charges due thereunder, and that no further sum whatsoever remains owing, due, or payable by the Borrower to the Lender under the said Agreement.
2. Extinguishment of Obligation. By reason of such full payment, the obligation arising from the Agreement is hereby deemed fully paid, satisfied, settled, extinguished, and discharged in its entirety, pursuant to Article 1231(1) of the Civil Code of the Philippines.
3. Release and Quitclaim. The Lender, for himself/herself and on behalf of his/her heirs, personal representatives, executors, administrators, successors-in-interest, and assigns, hereby releases, waives, quitclaims, and forever discharges the Borrower, together with the Borrower’s heirs, successors-in-interest, and assigns, from any and all manner of actions, causes of action, suits, claims, debts, sums of money, accounts, bonds, damages, demands, liabilities, and obligations whatsoever, whether at law or in equity, and whether presently known or unknown, arising out of, connected with, or in any manner relating to the Agreement and the execution, delivery, and performance thereof.
4. Cancellation of Securities. Any promissory note, collateral, security, guaranty, mortgage, or other instrument given or executed by the Borrower to secure the loan under the Agreement is hereby deemed cancelled, released, and of no further force or effect, and the Lender undertakes to execute, upon request, any and all documents necessary to effect the discharge, cancellation, or release of any such security or registered encumbrance.
5. Scope of Certificate. This Certificate relates solely and exclusively to the Agreement dated ________, and shall not be construed to affect, release, or extend to any other contract, agreement, undertaking, obligation, understanding, or covenant existing or that may exist between the parties.
6. Voluntary Execution. The Lender hereby declares that this Certificate is executed freely, voluntarily, and with full knowledge and understanding of its contents and legal consequences, and not under any duress, intimidation, fraud, or undue influence.
7. Governing Law. This Certificate shall be governed by, construed, and interpreted in accordance with the laws of the Republic of the Philippines.

IN WITNESS WHEREOF, the Lender has hereunto set his/her hand this ________, at ________, Philippines.

_________________________________
________
Lender

CONFORME / RECEIVED BY:

_________________________________
________
Borrower

SIGNED IN THE PRESENCE OF:

_________________________________      _________________________________
________      ________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES  )
________  ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, this ________, personally appeared the following:

________, with competent evidence of identity consisting of ________ with number ________;

known to me and to me known to be the same person who executed the foregoing Certificate of Full Payment and Release of Loan Obligation, and who acknowledged to me that the same is his/her free and voluntary act and deed.

This instrument, consisting of ________ page(s), including the page on which this Acknowledgment is written, has been signed by the party and his/her instrumental witnesses on each and every page thereof.

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_________________________________
NOTARY PUBLIC

Doc. No. ________;
Page No. ________;
Book No. ________;
Series of ________.