��������Ƶ

The Second Mortgage Agreement is a crucial document used in Philippine real estate financing when a property owner seeks additional funding using a property that already has an existing mortgage. This document type is particularly relevant in scenarios where property owners need to access additional capital while maintaining their existing first mortgage, or when refinancing the entire first mortgage is not practical or desirable. The agreement must comply with Philippine civil law requirements, particularly the Civil Code of the Philippines and the Property Registration Decree (PD 1529). It includes essential provisions regarding the subordinate nature of the security interest, acknowledgment of the first mortgage's priority, specific terms of the additional financing, and detailed requirements for registration and enforcement under Philippine law. The document is structured to protect both the second mortgagee's interests while respecting the superior rights of the first mortgagee.

1. Parties: Identification of the Mortgagor (property owner) and Mortgagee (lender), including their complete legal names, addresses, and legal capacity

2. Background: Recitals explaining the context of the agreement, including reference to the first mortgage, the need for additional financing, and confirmation of the first mortgagee's awareness

3. Definitions: Definitions of key terms used throughout the agreement, including 'First Mortgage', 'Property', 'Secured Obligations', and 'Security Interest'

4. Creation of Second Mortgage: Express creation of the second mortgage, acknowledging its subordinate position to the first mortgage

5. Property Details: Comprehensive description of the mortgaged property, including legal description, title details, and current encumbrances

6. Loan Amount and Terms: Details of the loan amount, interest rate, payment terms, and maturity date

7. Representations and Warranties: Mortgagor's declarations regarding property ownership, authority to create second mortgage, and disclosure of existing encumbrances

8. Covenants: Mortgagor's ongoing obligations regarding property maintenance, insurance, taxes, and compliance with first mortgage terms

9. Default and Remedies: Events of default, cure periods, and available remedies, considering the presence of the first mortgage

10. Priority and Subordination: Express acknowledgment of subordinate position to first mortgage and related terms

11. Registration and Perfection: Requirements and procedures for registering the second mortgage with appropriate authorities

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of courts