Loan Agreement - Template Form to Fill out Word and PDF

LOAN AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is entered into this _________ day of _______________________, 20_______, at the City/Municipality of _______________________________ Province of _______________________________, by and between:

________, with the following nationality: Filipino, single, of legal age, and with postal address at: ________, hereinafter referred to as the "Creditor";

- and -

________, with the following nationality: Filipino, single, of legal age, and with postal address at: ________, hereinafter referred to as the "Debtor";

(Each of the Creditor and the Debtor may be referred to as a "Party" in the singular and "Parties", collectively.)

WITNESSETH: THAT

WHEREAS, the Debtor has requested a loan of ________ (₱________) (the "Loan") from the Creditor;

WHEREAS, the Creditor has agreed to extend a loan to the Debtor subject to the terms and conditions set forth herein;

NOW, THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants and agreements hereinafter stated, the Parties agree as follows:

1. Loan. The Creditor has extended the Loan to the Debtor, the full amount of which is acknowledged to have been received by the Debtor.

2. Interest. The Debtor shall pay interest on the Loan at the rate of ________ Per Cent (________%) per annum on the outstanding balance. All payments for interest shall be computed daily on the basis of a 365-day year for the actual days elapsed. Interest shall accrue from the date hereof until full payment thereof.

3. Payment. The Debtor shall fully pay the Loan and any accrued interest to the Creditor on ________.

If any Payment Date would fall on a day which is not a business day, the Loan shall be payable on the next succeeding business day and the interest shall be adjusted accordingly.

4. Application of Payment. All payments shall be applied first against interest due on the Loan then against the principal amount of the Loan then due and payable.

5. Use of the Loan. The Debtor agrees that it will use the proceeds of the Loan exclusively for the following:

________

6. Taxes and fees. All documentary stamps due on this Agreement shall be for the account of the Debtor.

7. Event of Default. Each of the following shall constitute an Event of Default:

a. Failure of the Debtor to comply with any of the covenants or obligations expressed or implied in this Agreement;

b. Failure of the Debtor to pay any principal amount or interest, when due and payable in accordance with the terms of this Agreement; or with respect to any amount other than the principal or interest, failure of the Debtor to pay within thirty (30) days from receipt of payment notice for said amount;

c. Insolvency of the Debtor or the inability of the Debtor to pay its debts when due or commits any act of insolvency;

d. Where the Creditor reasonably believes that the Loan has been used by the Debtor for some purpose other than the agreed Use of the Loan;

e. An attachment or levy upon all or substantial party of the Debtor's property which would materially impair the Debtor's financial ability to perform its obligations under this Agreement;

f. Violation by the Debtor of any law, regulation, judgment, or administrative decision or decree, including non-payment of taxes, in circumstances where the Creditor reasonably believes that said violation will have an adverse effect on the Debtor's ability to meet its obligations under this Agreement.

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9. Notices. Any notice or communication sought to be made in relation to this Agreement shall be in writing and shall be deemed duly given and sufficient under the following:

a. on the date given, if by personal delivery;

b. Ten (10) business days after posting or the date of receipt, whichever is earlier, if transmitted by mail; or

c. Two (2) business days from the date of transmittal or the date of acknowledgment of transmittal, whichever is earlier, if transmitted by facsimile or email.

10. Waiver and Cumulative Rights. Failure or delay of the Creditor in exercising any right, power, or remedy upon any breach or default of the Debtor under this Agreement shall thereafter not be construed as a waiver, abandonment or cancellation nor shall it impair any such right, power, or remedy. Any waiver on the part of the Creditor shall be in writing. All remedies afforded the Creditor under this Agreement, by law, or otherwise, shall be cumulative and not alternative.

11. Governing Law. This Agreement and all other documents pertaining hereto shall be governed and construed in accordance with the laws of the Republic of the Philippines.

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13. Assignment. This Agreement shall be binding upon and enforceable on the Debtor and the Creditor and their respective successors and assigns. The Debtor shall not assign or transfer its rights or obligations hereunder without the prior consent of the Creditor, which consent shall not be unreasonably withheld.

14. Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral, between the Parties. No amendment or modification of this Agreement shall be valid or binding unless made in writing and signed by both Parties.

15. Counterparts. This Agreement may be executed in any number of counterparts. Any single counterpart or a set of counterparts signed, in either case, by the Parties hereto shall constitute a full and original agreement for all purposes.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signature on the date and at the place stated above.

________
Creditor

________
Debtor

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )
_______________________________, _______________________________ ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, this ________ day of ______________________, 20______ personally appeared:

1. ________, with the following competent proof of identification: _______________________________________________________________;

2. ________, with the following competent proof of identification: _______________________________________________________________

to me known and by me known to be the same persons who executed the foregoing Loan Agreement and they acknowledged to me that the same is their free and voluntary act and deed and that of the entity represented, if any, for the uses and purposes therein set forth.

WITNESS MY HAND AND NOTARIAL SEAL at the place and on the date first herein above written.

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