REPUBLIC OF THE PHILIPPINES )

) . .

LOAN AGREEMENT
WITH PLEDGE
KNOW ALL MEN BY THESE PRESENTS:
This Agreement made and executed on this _____ day of
April, 2015 in _______________________, by and between:
_______________________, Filipino, of legal age,
married,
with
address
at
______________________________________________,
(hereinafter referred to as the PLEDGEE);
- and _________________________, Filipino, of legal
age,
married,
with
office
address
at
________________________________________,
(hereinafter referred to as the PLEDGOR).
WITNESSETH; That:
THE LOAN
1.
At the request of the PLEDGOR, the PLEDGEE,
had extended a loan in favor of the PLEDGOR, in the
principal sum of TWO MILLION PESOS (P2,000,000.00)
(the LOAN), the full amount of which is acknowledged to
have been fully and duly received by the PLEDGOR.
2.
The PLEDGOR has requested for a SIX (6)
MONTHS term loan, to be paid to the PLEDGEE in periodic
installments, commencing on the THIRTIETH (30 th) day of
the immediately succeeding month, and every THIRTIETH
(30th) day of the month thereafter, together with a
compounded interest at the rate of ONE PERCENT (1%) per
month.
3.

In the event that the PLEDGOR shall fail to pay

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the LOAN as it falls due, the unpaid principal and accrued

interest thereon shall, in addition to the aforementioned
stipulated interest, be subject to penalty interest at the
same rate as the stipulated interest, commencing on the
date immediately following the due date of the LOAN, and
until the full payment of the entire outstanding amount of
the LOAN has been made.
PLEDGE
4.
As security by the PLEDGEE for the repayment of
the LOAN and the interest and other charges thereon, and
for the due faithful performance of the obligation, the
PLEDGOR, by way of pledge, hereby transfers, conveys, and
encumber, in favor of the PLEDGEE, the PLEDGED
PROPERTIES as described below, and under the terms and
conditions set forth:
DESCRIPTION OF THE PLEDGED PROPERTIES
5.

___________________________________________________

6.
The properties herein pledged are all the
properties set forth and particularly described above. The
PLEDGOR further agrees that all shares of stock, if any,
arising from stock splits and reverse splits involving the
Pledged Properties, as well as all stock dividends declared
on the Pledged Properties, and all shares of stock or other
securities arising or derived from the exercise of stock
rights or warrants attributable to the Pledge Properties,
shall form part of the Pledged Properties.
7.
For as long as the LOAN remains outstanding, the
aggregate fair market value of the Pledged Properties shall,
at all times, be equal to at least ONE HUNDRED per cent
(100%) of the value of the remaining unpaid balance of the
LOAN. If at any time, in the opinion of the PLEDGEE, the
fair market value of the Pledged Properties is less than the
outstanding balance, the PLEDGOR shall, upon demand by
the PLEDGEE, pledge, under the terms and conditions set
forth or referred to herein, additional properties of
sufficient quantity and quality acceptable to the PLEDGEE,
such that in the reasonable determination of the PLEDGEE,
the aggregate fair market value of the Pledged Properties
including the additional properties, shall at least be equal to
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the total unpaid balance of theLOAN of the PLEDGOR.

8.
The PLEDGOR hereby represents and warrants
that he is the absolute owner in fee simple and is in lawful
possession of the Pledged Properties, free and clear from
any and all liens, encumbrances and adverse claims of
whatever kind and nature, has full power and authority to
pledge the same under the terms hereof, and that there is
no legal or contractual impediment, which would in any
way, impair the validity or enforcement of this pledge.
9.
The PLEDGOR also warrants that the pledge and
all other documents and deeds, related or supplemental
hereto, have been authorized by all necessary acts and
deeds (including government authorization, if required) and
when executed and delivered as contemplated by this
pledge, shall be valid and binding in accordance with their
respective terms. Further, the PLEDGOR warrants that the
Pledged Properties have the required collateral value, and
at any time that any obligation remains outstanding and
unpaid, the Pledged Properties shall, at all times, be at least
equal to the Pledged Properties.
10. As long as any amount of the LOAN remains
unpaid, the PLEDGOR hereby covenants and undertakes:
(a) that the stock certificates which are already
issued, are to be delivered to the PLEDGEE;
(b) to execute and deliver in favor of the
PLEDGEE, assignment/s in the form and
substance, satisfactory to the PLEDGEE, covering
the Pledged Properties for which the stock
certificates or other evidence of ownership
thereof have not been issued;
(c) at the PLEDGOR's own expense and account,
warrant and defend the title to all the Pledged
Properties, for the benefit of the PLEDGEE;
(d) to not sell, assign, dispose of, encumber or
otherwise subject to any other lien, the Pledged
Properties or any part thereof;
(e) that within thirty (30) days from date hereof,
or unless sooner required by the PLEDGEE, to
cause this pledge and all instruments amendatory
or supplemental thereto, to be duly filed and
registered in the books of the issuers thereof, or
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in such other manner, and at such places as may

in the opinion of the PLEDGEE be required by law
in order to make fully effective, and to maintain,
preserve, and protect the lien and security of this
pledge;
(f) that the PLEDGOR will protect and preserve
the lien constituted under this pledge, and upon
reasonable request of the PLEDGEE, to execute
and deliver such further instruments, and perform
such further acts, as may be necessary or proper
to more effectively carry out the purposes of this
pledge and to subject to this pledge any property
intended to be covered hereby.
11. Upon failure of the PLEDGOR to keep, observe,
and perform any or all of the foregoing covenants, the
PLEDGEE may, in conjunction with or in addition to any
other remedy herein provided, perform or cause to be
performed said covenants on behalf of the PLEDGOR. Any
and all costs advanced or incurred by the PLEDGEE
thereon, shall be reimbursed by the PLEDGOR immediately
upon demand, and shall bear interest at the rate abovementioned from the date the advance was made or cost
incurred, until full payment thereof, and shall together with
the interest herein provided be deemed to form part of the
LOAN.
12. The PLEDGOR is in default, within the meaning of
this Agreement, when the PLEDGOR fails to duly and fully
pay and perform any of the obligations due, and upon notice
to the PLEDGOR that the obligation is already due and
demandable.
13. Default by the PLEDGOR of any of the installment
due, shall entitle the PLEDGEE to immediately demand the
total unpaid balance of the LOAN and to exercise the
remedies as provided for by law, including but not limited to
selling the Pledged Properties as the PLEDGEE may deem
convenient, necessary or proper, at a public sale, upon
demand and notice to the PLEDGOR, to be applied to the
outstanding LOAN balance, including interest and other
charges incurred in relation to this Agreement.
14. The proceeds realized from the sale of the
Pledged Properties shall be applied in the order given:
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(a) to the payment of all taxes, assessments,

governmental charges or liens;
(b) to the payment of all expenses of sale,
including but not limited to, notices and
advertisements, commissions, attorney's fees, and
other related charges; and
(c) to the payment of the LOAN.
15. To effectively carry out the powers granted to the
PLEDGEE, under the preceding paragraph and elsewhere in
this Agreement, the PLEDGOR hereby irrevocably names,
constitutes and appoints the PLEDGEE as its true and
lawful attorney in fact, with full power and authority to do
and perform, by itself or through its nominees or agents,
with full power of substitution or revocation, any and all
acts and things which may be necessary, proper or
convenient to be done or performed, as if done by the
PLEDGOR, and all acts done in conformity with the powers
herein granted are hereby confirmed and ratified.
16. The PLEDGOR shall pay all costs, fees, charges,
and other expenses in connection with the preparation,
execution, delivery, registration, and enforcement of this
Agreement, or any amendment, supplement, or modification
thereof, including but not limited to all stamp and other
taxes.
17. In the event the PLEDGOR fails to promptly or
fully pay or perform any of its obligation, or should the
PLEDGEE require the assistance of counsel in enforcing its
rights hereunder, the PLEDGEE shall be entitled to recover
from the PLEDGOR, as and for attorney's fees and
liquidated damages, a sum equivalent to TWENTY per cent
(20%) of the total amount of the due and outstanding
obligations, even withoutany legal action taken, which in no
case be less than P200,000.00.
18. This Agreement shall be binding upon and inure
to the benefit of the FIRST and SECOND PARTIES, their
successors, and assigns, except that the PLEDGOR may not
assign or transfer its rights without the prior written
consent of the PLEDGEE.
19. The

invalidity

or

unenforceability

of

any

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provisions of this Agreement shall not affect the validity or

enforceability of any other provision of this Agreement,
which shall remain in full force and effect.
20. The PLEDGOR shall remain liable under this
Agreement for as long as the LOAN, or any portion thereof,
remain unpaid,
notwithstanding any modification,
amendment or novation of the Agreement.
21. Any claim, dispute or action arising from this
Agreement, including the validity or effectivity hereof shall
be filed exclusively in the appropriate court of Makati City,
to the exclusion of all other venues.
22. This Agreement shall continue to be valid, binding
and be in full force and effect until the obligations are fully
paid and performed. Upon the full payment LOAN and
performance of all the obligation, this Agreement shall,
without need for any act or deed, cease to have any further
force and effect.
IN WITNESS WHEREOF, the parties have hereunto set
their hands and seals as of the day and year first written
above.
_____________________
PLEDGEE

_____________________
PLEDGOR

SIGNED IN THE PRESENCE OF:

____________________________
_____________________________
WITNESS

WITNESS

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
CITY OF
)S.S.

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BEFORE ME, a Notary Public, for and in _____________,

this _____ day of April 2015, the following appeared and
exhibited their respective Passports:
Name
Passport No.
Date/Place Issued
_________________
__________________ _____________________
_________________
__________________ _____________________
Known to me to be the same persons who executed the
foregoing LOAN AGREEMENT WITH PLEDGE, consisting of
SIX (6) pages, including this page, on which this
Acknowledgement is written, and they acknowledged to me
that the same is their true and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and at the
place first above written.

NOTARY PUBLIC

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2015

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