Salary LoanMemorandum of Agreement

1、memorandum of agreementknow all men by these presents:this memorandum of agreement duly executed by and between:planters development bank, a banking corporation duly organized and existing under and by virtue of the laws of the republic of the philippines with principal place of business at 314 sen.

2、 gil j. puyat avenue, makati city, and hereinafter referred to as “” and _, a corporation duly organized and existing under and by virtue of the laws of the republic of the philippines with principal place of business at _, and hereinafter referred to as the “company”witnesseth: that whereas pdb has

3、 offered to provide a salary loan facility to qualified employees of the company and the company has accepted pdbs offer subject to the terms, conditions and undertakings set forth below;now, therefore, for and in consideration of the foregoing premises, the parties hereto hereby agree as follows:se

4、ction 1. facilitypdb will provide a multi-purpose salary loan facility to qualified employees of the company, who are duly endorsed by the human resources department (hrd) of the company.section 2. guidelinesthe following guidelines shall be followed in implementing the loan facility:1. eligibility

5、the loan program will be made available to qualified employees of the company based on the eligibility criteria attached hereto as annex “a”loan approval shall be based solely on the pdbs credit criteria and internal policy guidelines.2. loan amount the minimum loanable amount shall be pesos: ten th

6、ousand pesos only (p10, 000) and the maximum loanable amount shall be pesos: five hundred thousand only, (p500,000.00).3. company line amount / line expiry the maximum salary loan line for the entire program is pesos: _. this line shall be for a period of one (1) year from date hereof reviewable for

7、 a period as indicated in a later notice unless sooner terminated or cancelled by pdb. to effect the renewal, pdb shall notify the company in writing.sub-limitfor employees/stockholders with more than 20% ownershiptotal loan exposure to all employees/ stockholders shall be limited to a total of p_ o

8、nly. 4. purpose - the proceeds of the loan may be used by the employee-borrower for his personal needs.5. term the term of the salary loan will be a minimum of twelve (12) months up to a maximum of thirty-six (36) months.6. rate applicable interest rate shall be:term (months)add-on rate per month12

9、and 18 months1.20%24, 30, and 36 months1.30%7. fees and charges documentary stamp tax as provided for under the law shall be deducted by pdb from loan proceeds of the employee-borrower. handling fee of p400.00 per approved application shall also be deducted from the loan proceeds.8. loan proceeds lo

10、an proceeds shall be released to the employee-borrower by way of cashiers check or credit to the employee-borrowers deposit account indicated in his/her loan application form.9. repayment loan payments shall be via equal monthly amortization and shall be on a salary deduction basis to be deducted by

11、 the company and remitted in lump sum to pdb with a breakdown schedule.10. penalty charge in case of non-payment of the multi-purpose salary loan, any amortization or interest/service charge due and payable as stated herein, shall likewise become due and demandable. the employee-borrower shall be ch

12、arged penalty of thirty-six percent per annum (36% p.a.) or equivalent of 3% per month beginning on the _ banking day after amortization due date. employee-borrower who will fully pay their loan before maturity date shall be charged a prepayment penalty of 3% of loan balance or p2, 000.00 whichever

13、is higher. pdb has the right to take necessary legal action against the employee-borrower should the loan remain unpaid.section 3. undertaking of the companythe company undertakes the following:1. to issue the necessary certification embodied in the salary application/ agreement form to be submitted

14、 by its employees/applicants2. to collect the loan payments of the employee-borrower loans by deducting the amortization amount from the employee-borrowers salary and remitting the payment to pdb not later than _ banking days after the _ day of every month depending on the date of loan booking. the

15、company shall be charged late remittance penalty equivalent to twenty four (24) percent per annum based on the unremitted amount in case of its failure to remit the loan payments within the above mentioned period. moreover, releases of loans to employees-borrowers of the company shall be held in abe

16、yance till after collections of loan payments have been remitted by the company to pdb.3. to notify pdb within ten (10) working days from notice as regards any employee-borrower who is resigning, retiring or about to be separated from the company.4. to facilitate the collection of the full payment o

17、f the loan from the employee-borrower who is resigning, retiring or about to be separated from the company, by deducting the full amount of the loan from the following:a) proceeds of the assigned benefits of the employee-borrower on the companys group life insurance policy, or its equivalent, mainta

18、ined by the company for its qualified employees and/or;b) proceeds of retirement benefits, provident fund, contribution, leave credits converted to cash and/or;c) other monetary benefits arising from the employee-borrowers death, resignation, retirement or cessation of employment which is in possess

19、ion, control and lawfully deductible by the company at the time of death, resignation, retirement or cessation of employment.section 4. fiduciary fundsit is agreed that the company is acting as a collection agent for pdb and as such, it is not liable for the payment of any outstanding loans, interes

20、ts and other charges which its employees may have to pdb. however, any amount collected shall be held by the company under fiduciary trust with an obligation to turn-over said trust fund to pdb within the period of _ days receipt hereof.section 5. representations and warrantiesthe company represents

21、 and warrants the following:1. it is a corporation duly licensed, organized, validly existing and in good standing under the laws of the republic of the philippines.2. it is a going concern and will continue to do business in the philippines consistent with its corporate existence.3. it has secured

22、all necessary board and/or corporate authorizations required to enter into this memorandum of agreement.section 6. severabilityeach paragraph and provision of this agreement is severable from this agreement, and if one or more provisions or parts hereof are declared invalid, the remaining provisions

23、 shall nevertheless remain in full force and effect.section 7. termination of agreement both parties have the option to terminate this agreement provided prior written notice is given and shall take effect thirty (30) days upon receipt of said notice. effects of the termination shall be prospective

24、and the company shall continue to comply with its obligations to pdb herein with respect to outstanding employee loans.section 8. venue of actions in case of disputeany dispute arising out of the application of or interpretation of this agreement shall be filed exclusively with the courts of makati

25、to the exclusion of all other courts.in witness whereof, the parties have caused this instrument to be signed this _ at makati city.planters development bank by:(pdb)by: (company)alfredo c. mojica, jr.assistant vice presidentgerardo a. morales senior vice president signed in the presence of:_ _ackno

26、wledgement republic of the philippines)makati city ) s.s.before me, this _ personally appeared: namecom. tax cert. no.date/place of issueplanters development bank0126655301.04.08 / makatialfredo c. mojica, jr.0132864403.03.08 / manilagerardo a. morales1223055301.09.08 / manilaknown to me and to me known to be the same persons who executed the foregoing memorandum of agreement and who acknowledged to me that the same is their free and voluntary act and deed that of the corporation(s) represented herein.witness my hand and notarial seal on th