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Promissory Note Modification Agreement
"I need a Promissory Note Modification Agreement for a PHP 5 million business loan with ABC Bank, extending the maturity date to March 15, 2025, and reducing the interest rate from 12% to 8% per annum, with monthly payments remaining the same."
1. Parties: Identifies and defines the parties to the agreement - typically the Lender and Borrower (and any guarantors if applicable)
2. Background: Recitals describing the original promissory note, its date, principal amount, and the parties' desire to modify certain terms
3. Definitions: Defines key terms used in the agreement, including reference to the Original Note and any modified terms
4. Acknowledgment of Existing Debt: Confirms the current outstanding balance and status of the original promissory note
5. Modifications: Clearly states all modifications to the original note (e.g., payment terms, interest rate, maturity date)
6. Reaffirmation: Reaffirms all unmodified terms of the original note remain in full force and effect
7. Representations and Warranties: Standard representations by the borrower regarding authority, enforceability, and no defaults
8. Effectivity: States when the modifications take effect and any conditions precedent
9. Governing Law: Confirms Philippine law as governing law and jurisdiction
10. Execution: Signature blocks and notarial requirements
1. Security Provisions: Include when modifications affect any existing collateral or security arrangements
2. Guarantor Consent: Required when the original note has guarantors who must consent to the modifications
3. Tax Provisions: Include when modifications have specific tax implications requiring address
4. Registration Requirements: Include when modifications require registration with specific authorities
5. Default Provisions: Include when modifying or adding new events of default
6. Fees and Expenses: Include when there are fees associated with the modification
1. Schedule A - Original Promissory Note: Copy or summary of the original promissory note being modified
2. Schedule B - Modified Payment Schedule: New amortization or payment schedule if payment terms are modified
3. Schedule C - Outstanding Balance Calculation: Detailed calculation of current outstanding balance including interest and charges
4. Appendix 1 - Required Authorizations: Copies of corporate authorizations or board resolutions if required
5. Appendix 2 - Security Documents: List or copies of affected security documents if applicable
Authors
Banking
Financial Services
Real Estate
Construction
Manufacturing
Small and Medium Enterprises
Agriculture
Mining
Retail
Technology
Healthcare
Education
Legal
Finance
Treasury
Credit and Collections
Risk Management
Compliance
Corporate Secretariat
Loan Operations
Account Management
Business Development
Chief Financial Officer
Finance Director
Credit Manager
Loan Officer
Legal Counsel
Corporate Secretary
Treasury Manager
Accounts Manager
Risk Manager
Collections Manager
Compliance Officer
Financial Controller
Business Development Manager
Corporate Finance Manager
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