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Promissory Note And Deed Of Trust Template for Philippines

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Key Requirements PROMPT example:

Promissory Note And Deed Of Trust

"I need a Promissory Note and Deed of Trust for a 5 million peso business loan secured by my commercial property in Makati City, with monthly payments over 5 years starting March 2025, including an early payment option with no penalties."

Document background
The Promissory Note And Deed Of Trust is a sophisticated legal instrument used in the Philippines when a lender requires substantial security for a loan transaction. This document type is particularly valuable in situations where traditional mortgage arrangements may not be optimal or where a trust structure offers additional benefits. It combines the straightforward debt acknowledgment features of a promissory note with the security advantages of a deed of trust, allowing the lender to secure the debt against specific property held by a trustee. The document must comply with Philippine Civil Code requirements for contracts, the Property Registration Decree for real property matters, and relevant banking regulations. It's commonly used in commercial lending, real estate financing, and business loans where significant assets are available as collateral. The trust structure provides additional protection for the lender while potentially offering more flexibility in enforcement compared to traditional mortgages.
Suggested Sections

1. Parties: Identifies the Maker/Grantor (debtor), Beneficiary (creditor), and Trustee with their complete legal names and addresses

2. Background: Establishes the context of the debt obligation and the purpose of creating the trust arrangement

3. Definitions: Defines key terms used throughout the document including 'Property', 'Obligations', 'Event of Default', etc.

4. Promise to Pay: States the principal amount, interest rate, and unconditional promise to pay

5. Payment Terms: Details the payment schedule, due dates, and method of payment

6. Grant of Trust: Formally establishes the trust arrangement and transfers the property to the trustee

7. Representations and Warranties: Maker's declarations regarding ownership of property, authority to enter agreement, etc.

8. Covenants: Ongoing obligations of the Maker regarding property maintenance, insurance, taxes, etc.

9. Events of Default: Lists circumstances constituting default and remedies available

10. Rights and Duties of Trustee: Outlines the trustee's responsibilities and powers

11. Execution: Signature blocks and notarization requirements

Optional Sections

1. Prepayment Provisions: Include when early payment options are allowed, specifying any penalties or conditions

2. Co-Maker Provisions: Required when there are multiple makers jointly liable for the debt

3. Security Substitution: Include when the maker is allowed to substitute the trust property with other collateral

4. Insurance Requirements: Detailed insurance requirements when the trust property requires specific coverage

5. Assignment and Transfer: Include when the note may be sold or transferred to other parties

6. Acceleration Clause: Optional provision allowing the entire debt to become due upon specific trigger events

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property held in trust

2. Schedule B - Payment Schedule: Amortization table showing all payment dates, amounts, and interest calculations

3. Schedule C - Insurance Requirements: Specific insurance requirements and minimum coverage amounts

4. Appendix 1 - Property Documents: Copies of property titles, tax declarations, and other relevant property documents

5. Appendix 2 - Required Permits: Copies of necessary permits or authorizations related to the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses



































Relevant Industries

Banking and Financial Services

Real Estate

Construction

Agriculture

Manufacturing

Small and Medium Enterprises

Commercial Lending

Property Development

Investment

Professional Services

Relevant Teams

Legal

Finance

Credit and Risk

Real Estate

Compliance

Trust Administration

Corporate Secretariat

Collections

Business Development

Investment

Relevant Roles

Legal Counsel

Banking Officer

Credit Manager

Loan Officer

Real Estate Manager

Trust Officer

Compliance Officer

Risk Manager

Property Manager

Financial Controller

Corporate Secretary

Chief Financial Officer

Business Development Manager

Investment Manager

Collections Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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