1

LOAN AGREEMENT
This Loan Agreement duly executed in the City of Pampanga this ___th day of ______,
20____ by and between:
Castillo Lending Inc., a corporation duly registered with the Securities
and Exchange Commission (hereinafter collectively referred to as the
Lender)
- and _____________________________________________ Filipinos, of
legal
age
with
address
at
_____________________________________________
(hereinafter
collectively referred to as the Borrowers).
WITNESSETH, That WHEREAS, at the request of the Borrowers, the Lenders have agreed to extend to the
Borrowers a loan under the terms and conditions set forth below;
NOW THEREFORE, subject to such premise and the mutual covenants contained
herein, the parties hereto agree as follows:
1.
Principal.
The Lenders shall extend to the Borrowers, by way of a loan, the
aggregate
principal
amount
of_____________________________________________________________________
(Php_____________________)(the Loan).
2.
Use of Proceeds.
Unless otherwise permitted by the Borrowers, the Client
shall
use
the
proceeds
of
the
Loan
solely
for
the
following
purpose/s:______________________________________________________________
______________________________________________________________________
_____________________________________________________________________
3.
Notes. The release of the Loan or any portion thereof shall be evidenced by
promissory notes (Notes) and certificate of full payment prescribed by the Lenders,
duly executed by the Borrowers.
4.
Maturity.
The Loan shall become due and payable in accordance with the
above Notes issued by the Borrowers in favor of the Lenders.
It is hereby agreed that any amount due under the Loan is based on the value of the
peso at the time of the execution of the Note corresponding thereto, and should there be
any sudden decrease in the value thereof due to extraordinary inflation or deflation or
any other cause, the value of the peso at the time of the execution of the Note shall be
the basis of payment. For this purpose, extraordinary inflation or deflation takes place
when so declared by the Bangko Sentral ng Pilipinas (BSP) or in the event of an
increase or decrease in any given year of 50% in the prices of prime commodities based
on the consumer price market index for Metro Manila as announced by the BSP.
5.
Interest.
The Loan shall bear interest at the rate prescibed under, and shall
be payable in accordance with, the corresponding Note(s).

The Lenders reserve the right to adjust the interest rate should the cost of money to fund
or maintain the Loan increase or decrease, provided that such adjustment shall be
effective upon giving of notice to the Borrowers.
7.
Security.
The Client agrees to provide the following security for the payment
of its obligations under this Agreement and other instruments or agreements required
hereunder, as well as for the prompt observance and performance of the terms and
conditions contained herein and in such other instruments or agreements required
hereunder:
______________________________________________________________________
The foregoing security shall be evidenced by agreements and documents to be
executed and delivered by the relevant parties (the Security Documents).
8.
Waiver, Cumulative Rights. No failure or delay on the part of the Lenders in
exercising their right, power or remedy under this Agreement shall impair any such right,
power or remedy, nor shall a waiver of any single breach or default be deemed a waiver
of any other breach or default thereafter occurring, nor shall any single or partial
exercise of any such right or power preclude any other or further exercise thereof or the
exercise of any other right or power hereunder. All remedies, either under this
Agreement or by law or otherwise afforded the Lenders shall be cumulative and not
alternative. No notice to or demand on the Borrowers in any case shall entitle them any
other or further notice or demand in similar or other circumstances.
9.
Taxes, Duties, Fees and Charges. All payments due to the Lenders hereunder
or under any instrument or agreement required hereunder shall be made without set-off
or counterclaim, and free and clear and without any deduction or withholding on account
of any taxes, levies, imposts, duties or other fees or charges, all of which shall be for the
account of the Borrowers.
10.
Costs of Collection. If the Lenders shall require the services of counsel to
enforce any of its rights and remedies under this Agreement and related documents, the
Lenders shall be entitled to recover from the Borrowers as and for attorneys fees, a sum
equal to fifteen percent (15%) of the sum sought to be recovered, which in no case shall
be less than One Hundred Thousand Pesos (P100,000.00), in addition to costs of suit
and all other fees and expenses incurred by and reimbursable to the Lenders by the
Borrowers.
11.
Waiver in Case of Judicial Execution.
In case of judicial execution of this
obligation or any part of it, the Borrowers hereby waive all their rights under the
provisions of Rule 39, Section 13 of the Rules of Court.
12.
Conflict.
If any provision of this Agreement is in conflict or inconsistent with
any provision in any Note, this Agreement shall prevail notwithstanding that the Note is
executed
on
a
later
date.
13.
Assignment. The Borrowers may not transfer their rights or obligations
hereunder without the prior written consent of the Lenders.
14.
Venue for Suit.
The Borrowers irrevocably agrees that any legal action,
suit, or proceeding arising out of or relating to this Agreement may be instituted, at the
option of the Lenders, in any competent court in the City of Pampanga, Philippines, and
by execution and delivery of this Agreement, the Borrowres submit to and accept with
regard to any such action or proceeding for themselves and in respect of their properties
or assets, generally and unconditionally, the jurisdiction of any such court. The

foregoing, however, shall not limit or be construed to limit the rights of the Lenders to
commence proceedings or to obtain execution of judgment against the Borrowers in any
venue or jurisdiction where assets of the Borrowers may be found.
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day
and year first written above.
______________________
Lenders

__________________________
Borrowers

SIGNED IN THE PRESENCE OF

____________________

____________________

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES
CITY OF PAMPANGA

)
) S.S.

BEFORE ME, a Notary Public for and in the City of Makati, personally appeared:
Name

Date/Place
of Issue

ID No.

known to me and by me known to be the same persons who executed the

foregoing Loan Agreement and who further acknowledged to me that the same is
their free and voluntary act and deed and that of the corporations they represent,
and that they are duly authorized to sign the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial
seal in the City of Makati this ____ day of __________, 1999.

Doc. No. ____;

Page No. ____;
Book No. ____;
Series of 2000.