Debtor will permanently relinquish any and all collateral that was provided to secure a loan when and if payments owed become over 30-days past-due on a secured loan. The loan will henceforth be deemed settled and closed.
Application of Payment: All payments shall be applied first against the interest due on the Loan then against the principal amount of the Loan then due and payable.
Event of Default: Each of the following shall constitute an Event of Default:
- Failure of the Debtor to comply with any of the covenants or obligations expressed or implied in this Agreement;
- 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 a payment notice for said amount;
- Insolvency of the Debtor or the inability of the Debtor to pay its debts when due or commits any act of insolvency;
- 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;
- 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.
Consequences of Event of Default: If an Event of Default shall have occurred, the Creditor may, by notice in writing, require the Debtor to immediately pay the entire Loan and any accrued interest.
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:
- on the date given, if by personal delivery;
- Ten (10) business days after posting or the date of receipt, whichever is earlier, if transmitted by mail; or
- 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.
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.
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.
Severability: If any provision or provisions contained in this Agreement or any document executed in connection herewith shall be declared by any court of competent jurisdiction as invalid, illegal, or unenforceable in any respect under any applicable law, the validity, legality, and enforceability of the remaining provisions contained herein not otherwise so declared shall remain in full force and effect and shall be enforceable as if they had been executed subsequent to the expungement of the invalid provision.
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.
Entirety of the Agreement and Amendments: This Agreement represents the entire agreement of the Parties and supersedes all prior negotiations, representations, and agreements, either oral or written. This Agreement may be amended only by a written instrument signed and agreed upon by all the Parties to this Agreement.
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.
IN WITNESS WHEREOF, the Parties have hereunto affixed their signature on the date and at the place stated above.
