MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is made and entered by and between:
______________, of legal age, Filipino, with address at _________________,
now and hereinafter called as the CREDITOR.
and
__________, of legal age, married to ______________________________, now
and hereinafter called as the DEBTOR;
who hereby stipulate, agree and bind themselves upon these terms
and conditions:
1. On the part of the CREDITOR:
(a.) That the CREDITOR lends money to the DEBTOR in
an amount stated below on account of the latters
employment with the former;
(b.)
That the CREDITOR lends money for the DEBTOR to
buy a property with MONTEREY FARMS CORPORATION;
(c.) That the CREDITOR agrees that the DEBTOR shall
post a security to the loan through a REAL ESTATE
MORTGAGE to be executed by the DEBTOR upon
payment of the property bought from _______________
CORPORATION, description of which is stated below
(d.)
That the CREDITOR agrees that the amount lent is to
be paid in installment, terms of which are stated below;
(e.) That the CREDITOR shall release the security given
by the DEBTOR upon payment of the full amount of
loan;
(f.) That the CREDITOR acknowledges the fact the DEBTOR
is borrowing money in her personal capacity and that
this agreement shall not bind the husband.
2. On the part of the DEBTOR:
(a.) That the DEBTOR agrees to the terms and conditions
of the loan stated below;
(b.) That the DEBTOR enters this agreement in her
personal capacity and this agreement will not bind the
husband;
(c.) That the DEBTOR acknowledges that the loan is
granted by the CREDITOR on account of the formers
employment with the latter;
(d.) That the DEBTOR shall use the full amount of loan to
purchase the property from ______________________
CORPORATION within FIFTEEN (15) DAYS from the grant
of loan, description of the property is stated below;
(e.)
That in case the DEBTOR shall not use the full
amount loan or any portion of such amount, the

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DEBTOR shall pay in full the amount of loan to the

CREDITOR without a need for demand.
(f.) That the DEBTOR upon execution of the CONTRACT TO
SELL or DEED OF ABSOLUTE SALE, whichever is
executed first, between the DEBTOR and MONTEREY
FARMS CORPORATION, the DEBTOR binds herself to
execute voluntarily a DEED OF REAL ESTATE MORTGAGE
in favor of the CREDITOR as a security for the loan, such
DEED REAL ESTATE MORTGAGE shall be prepared by the
CREDITOR;
(g.) That in case the DEBTOR failed to comply with the
terms of payment of the loan and the conditions of the
DEED OF REAL ESTATE MORTGATGE, the DEBTOR shall
voluntarily abandon and transfer the ownership of the
property subject of the DEED OF REAL ESTATE
MORTGAGE in favor of the CREDITOR free from all
encumbrances.
3. Common and mutual terms and conditions, following:
(a.) That the PARTIES agree to incorporate this
MEMORANDUM OF AGREEMENT as an integral part of
the DEED OF REAL ESTATE MORTGAGE on the subject
property;
(b.) That the PARTIES agree that failure to comply with
the terms and conditions of this agreement shall result
to automatic rescission of this MEMORANDUM OF
AGREEMENT and all obligations shall be due and
demandable without the need for demand.
(c.) That the PARTIES agree that upon execution of the
CONTRACT TO SELL or DEED OF ABSOLUTE SALE,
whichever comes first, the DEBTOR shall execute a
DEED OF REAL ESTATE MORTGAGE in favor of the
CREDITOR covering the property described below:
Registry of Deeds for the __________
Transfer Certificate of Title No. __________
4. Now, therefore, for in and consideration of the
foregoing conditions and the mutual covenants
hereinafter, both parties herein mutually agree as
follows;
(a.)
That the CREDITOR lends PHILIPPINE PESO: ONE
MILLION FIVE HUNDRED THOUSAND ONLY (PhP
1,500,000.00) in favor of the DEBTOR;
(b.)
That the DEBTOR agrees to pay the loan amount in
CASH or through SALARY DEDUCTION for ONE HUNDRED
TWENTY (120) MONTHS in equal monthly installment of
PESOS: SEVENTEEN THOUSAND ONLY (PhP 17,000.00),
including interest, starting ____________, 2015 and 120
months of every 15th of the month thereafter;
(c.)
That the DEBTOR voluntarily agrees that in case of
failure to pay the monthly installment of TWO (2)
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MONTHS, the whole amount shall be due and

demandable without the need for further demand with
TWO PERCENT (2%) interest per month from the time of
failure to pay;
(d.)
That in case the DEBTOR defaulted in payment for
TWO (2) MONTHS, the CREDITOR may extra-judicially
foreclose the property subject of the DEED OF REAL
ESTATE MORTGAGE;
(e.)
That the DEED OF REAL ESTATE MORTGAGE is to be
executed by the DEBTOR voluntarily and without the
need for the demand to execute from the creditor, within
FIFTEEN (15) DAYS from the execution of the CONTRACT
TO SELL or DEED OF ABSOLUTE SALE between the
DEBTOR
and
MONTEREY
FARMS
CORPORATION,
whichever is executed first;
(f.) That the DEBTOR agrees that in case the DEBTOR
decides to sell the property subject of the DEED OF REAL
ESTATE MORTGAGE, the CREDITOR shall have the right of
FIRST REFUSAL before it can be offered to any other
buyer by the DEBTOR. The CREDITOR agrees to
communicate his decision on the RIGHT OF FIRST
REFUSAL within SIXTY (60) DAYS from the notice of the
DEBTOR of her intention to sell the subject property;
(g.)
That after the loan has been fully paid by the
DEBTOR including interests and costs therein, this
agreement will be terminated and will be considered null
and void and the DEED OF REAL ESTATE MORTGAGE shall
be cancelled in favor of the DEBTOR;
(h.)
That any PARTY who will violate any of the
considerations contained in this agreement will be held
liable for damages;
(i.) That any, and all, part of this agreement shall be
deemed private and confidential by both PARTIES herein,
and should not be disclosed to anybody, specifically to
any personnel, staff, or officers of any bank and
Financing Institution;
(j.) That no modification, alteration or amendments to this
undertaking shall be made valid if not made in writing
and duly signed by both PARTIES herein;
(k.)
That this agreement is made and executed by both
PARTIES herein willingly and voluntarily.
IN WITNESS WHEREOF we have hereunto affixed our signatures
this _______ day of _______ 2015 at __________________, Philippines.

_________________________
CREDITOR

_________________________
DEBTOR

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SIGNED IN THE PRESENCE OF:

_________________________

_________________________

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES) S.S.
________________________________)
BEFORE ME, Notary Public for and in the _______________________,
personally appeared the following persons who exhibited to me their
respective government-issued identification cards as follows,

Name

Government
Issued ID No.

Place of
Issuance

Issue/Expir
y Date

---known to me and to me known to be the same persons who

executed the foregoing instrument, and acknowledged that they
executed the same as their free act and deed.
This instrument consisting of four (4) pages, including this page
whereon the acknowledgment is written, has been signed by the
parties and their witness on all the pages thereof.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal on this ___ day of ___________ at __________________,
Philippines.

NOTARY PUBLIC
Doc. No. _______;
Page No. _______;
Book No. _______;
Series of 2015

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