Document background
A Promissory Note Mortgage is a crucial document in Philippine secured lending practice, used when a borrower needs to obtain financing while offering real property as collateral. This document type is commonly utilized in both private lending arrangements and institutional financing, particularly in real estate transactions, property development, and business expansion scenarios. The document serves a dual purpose: first, as a promissory note evidencing the debt and payment terms, and second, as a real estate mortgage creating a security interest in favor of the lender. Under Philippine law, the document must be notarized and registered with the Register of Deeds to be enforceable against third parties. The format and content must comply with strict legal requirements under various Philippine statutes, including the Civil Code, Negotiable Instruments Law, and Property Registration Decree.
