NEST BUILDERS & DEVELOPMENT CORPORATION
No. 8 Dinar St. JEM 9 Subdivision, Tandang Sora
Quezon City, Philippines
REAL ESTATE MORTGAGE
This REAL ESTATE MORTGAGE made and executed by ________________
and ________________________, both of legal age, Filipino citizen, with residence and postal
address at________________________________________________________________, herein
called (irrespective of number ) the BORROWER, in favor of NEST BUILDERS &
DEVELOPMENT CORPORATION, a corporation duly organized and existing under and by
virtue of the laws of the Philippines, with principal place of business and postal address at No. 8
Dinar St., JEM 9 Subdivision, Tandang Sora, Quezon City, Philippines, hereinafter called the
LENDER.
WITNESSETH: That –
ARTICLE I
SECURED OBLIGATION
This MORTGAGE shall secure the following obligations:
1.
The payment of all loans, overdrafts, credit lines and other credit facilities or
accommodations obtained by the MORTGAGE and/or by _____________________ and
_______________________ hereinafter called as DEBTOR.
2.
The payment of all interest, charges, penalties, reimbursements and other obligations
owing by the BORROWER and/or DEBTOR to the LENDER whether direct or indirect,
principal or secondary, absolute or contingent as appearing in the accounts, books and records of
the LENDER.
3.
The payment of all obligation of the BORROWER and/or DEBTOR of whatever kind or
nature whether such obligations have been conducted before, during, or after the constitution of
the LENDER.
4.
In case the BORROWER and/or DEBTOR incurs subsequent obligation of whatever kind
or nature whether such obligations, as extension thereof, or as new loans or is given any other
kind of accommodations, the payment of said obligations, and/or accommodations without the
necessity of executing new agreements.
5.
The faithful and strict performance and compliance by the BORROWER and/or
DEBTOR of all terms and condition of the MORTGAGE, the credit agreements, promissory
notes and other loans documents and agreements evidencing the loans, overdrafts, credit lines
and other credit accommodation granted to the BORROWER and/or DEBTOR; including all
amendments thereon, such as, but not limited to, changes in the interest rates, penalties, charges,
or fees; acceleration of payments; and the like.
All the foregoing obligations secured by the MORTGAGE are hereinafter referred to as
SECURED OBLIGATION.
ARTICLE II
ENABLING CLAUSE
For and in consideration of the grant of SECURED OBLIGATIONS, BORROWER
thus hereby transfers and conveys by way of this MORTGAGE unto the LENDER, its
successors, or assign, the parcels of land which are described in the list appearing at the back of
this document, or in a Supplementary list attached thereto (hereinafter referred to as PARCELS
OF LAND) together with all the properties enumerated in ARTICLE III of this MORTGAGE.
However, if the BORROWER and/or DEBTOR shall pay to the LENDER, its successors
or assign the SECURED OBLIGATIONS on or before the date they are due, and shall keep
and perform all the covenants and agreements herein contained as well as those enumerated in
the loans documents for the BORROWER and/or DEBTOR to keep and perform, then this
MORTGAGE shall be null and void otherwise it shall be full force and effect. For purposes of
registration, the consideration of this MORTGAGE is initially fixed at
ARTICLE III
PROPERTIES MORTGAGED
The following are the properties mortgaged to the LENDER:
1.
The PARCELS OF LAND.
2.
All buildings and improvements now existing or which may hereafter be erected or
constructed on all the PARCELS OF LAND.
3.
All machineries, equipment, receptacles, instruments, implements or the like now or
hereafter found, implanted or placed on the PARCELS OF LAND.
4.
All other properties of whatever kind and nature, used by the BORROWER in the
industry or work carried over on the lands and/or in the buildings, subject to this MORTGAGE,
including, but not limited to, such properties which the BORROWER may acquire as substitute
or replacement or addition to those properties now existing or may hereafter exist.
5.
All easements, sugar quotas, agricultural or land indemnities or compensation, aids or
subsidies.
6.
All other rights or benefits annexed to or material therein now existing or which may
hereafter exist.
7.
All other assets acquired with the proceeds of the SECURED OBLIGATIONS.
ARTICLE IV
PURPOSE OF LOAN
The BORROWER shall not use or apply the amount obtained from the loans or other
credit accommodation except for the purposes stated in the covering loan/credit agreement or
other instruments, or in the loan application approved by the LENDER.
ARTICLE V
BORROWER’S WARRANTY
The BORROWER hereby declares and warrants that:
A.
He/She/It is the absolute owner of the properties, subject of this MORTGAGE, free from
all liens and encumbrances.
B.
There exists no transaction or document affecting the same, previously presented for,
and/or presently pending registration in the Registry of Deeds in any City or Province.
ARTICLE VI
ADDITIONAL WARRANTY IN CASE OF UNREGISTERED LAND
The mortgage covering the properties not registered under Act No.496, or under the
Spanish Mortgage Law, shall be registered under the provision of Act No. 3344. In the event the
untitled properties are bought under the provisions of Act 496 and the corresponding certificates
of title are issued while the loans and other credit accommodation secured hereby are still
outstanding, the BORROWER shall deliver said certificates of title to the LENDER for the
annotation of this MORTGAGE.
ARTICLE VII
REGISTRATION AND OTHER FEES
The BORROWER shall pay all expenses in connection with this MORTGAGE, the
registration, cancellation of foreclosure thereof should the LENDER deem it necessary, and all
other fees, assessments, government imposts and taxes, such as, but not limited to, documentary
and science stamps required by laws for its registration, as well as other instruments related
herewith. The BORROWER shall likewise pay on time all taxes and assessments on the
mortgaged property/ies reporting to the LENDER the fact of such payment on the dates on which
they were affected and surrendering to the LENDER, for the duration of this MORTGAGE, each
official receipt as may be issued to him/her/it after payment of such taxes and other assessments.
In the event that the BORROWER fails to register this MORTGAGE with the proper Registry of
Deeds, it is hereby agreed that the LENDER may, at its sole discretion, register this
MORTGAGE advancing the fees and taxes therefore for the account of the BORROWER.
ARTICLE VIII
INSURANCE AND ADDITIONAL SECURITIES
The BORROWER shall insure during the life this MORTGAGE all buildings,
improvement and other properties covered hereby against fire and earthquake for an amount and
with such company satisfactory to the LENDER, endorsing and delivering to the latter the
corresponding policies. The BORROWER shall not secure any additional insurance policy on
the mortgaged property/ies without the consent of the LENDER. However, If the BORROWER
should secure additional insurance on the mortgaged property/ies without the consent of the
LENDER and without the property endorsing in favor of the LENDER the policies
corresponding thereto, the same shall, by virtue of this presents, be considered assigned to the
LENDER, which shall, as assignee of the original and of the additional policy or policies, have
authority to settle or liquidate in case the risk or risks insured against occur all claims pertaining
to said policy and apply the proceeds thereof to the account of the BORROWER and the
BORROWER shall be credited only with the cash that the LENDER may receive for the said
property/ies and only from the date it actually receives the same. The BORROWER shall keep
the mortgaged property/ies to ascertain the condition thereof and its actual value in the market.
If at any time during the existing of the MORTGAGE and/or as long as the BORROWER
is indebted to the LENDER, the mortgaged property/ies or any options thereof is lost, damaged
or suffer/s a depreciation in value due any cause as would be insufficient or inadequate to
SECURED OBLIGATIONS, the BORROWER, his successors or assigns, shall give additional
security acceptable to the LENDER, so as to bring the total value of the securities held by the
LENDER to an amount not less than the value of the securities as appraised by the LENDER at
the time original obligation were contracted and/or the subsequent additional loan were given or
to an amount which would be legally adequate to secure all the SECURED OBLIGATIONS;
otherwise, the LENDER may declare the entire mortgage obligations immediately due and
demandable s if the period of the mortgage obligations has expired.
ARTICLE IX
FORECLOSURE; POWER OF ATTORNEY; RECEIVERSHIP
If at any tine, an event of default as defined in the credit agreements, promissory notes
and other related loan documents referred to in paragraph 5 of ARTICLE I hereof, or the
BORROWER and/or DEBTOR shall fail or refuse to pay the SECURED OBLIGATIONS, or
any of the amortization of such indebtedness when due, or to comply any of the conditions and
stipulations herein agreed, or shall during the time this MORTGAGE is in force, institute
insolvency proceeding or by involuntary declared insolvent or shall use the proceeds of this loan
for purposes other than those specified herein, or if this MORTGAGE cannot be recorded in or
the BORROWER fails to register the same with the corresponding Registry of Deeds, then all
the obligations of the BORROWER secured by this MORTGAGE and all the amortizations
thereof shall immediately foreclose this MORTGAGE judicially in accordance with the Rules of
Court, or extrajudicially in accordance with Act. No. 3135, as amended, and Presidential Decree
No. 3135, as amended, and Presidential Decree No. 385. For the purpose of extrajudicial
foreclose, the BORROWER hereby appoints the LENDER his/her/its attorney-in-fact to sell the
property mortgaged under Act. No. 3135, as amended, to sign all documents and perform any act
requisite and necessary to accomplish said purpose and to appoint its substitutes as such
attorney-in-fact with the same power as above specified. In case of judicial foreclosure, the
BORROWER hereby consents to the appointment of the LENDER or any of tits employees as
receiver, without any bond, to take charge to the mortgaged property/ies at once, and to hold
possession of the same and the rents, benefits and profits delivered from the mortgaged
property/ies before the sale, less the costs and expenses of the receivership.
ARTICLE X
BREACH OF POSSESSION AND PRESERVATION
Effective upon the breach of any condition of this MORTGAGE and in addition to the
remedies herein stipulated, the LENDER hereby likewise attorney-in-fact of the BORROWER
with full powers and authority to take actual possession of the mortgaged property/ies without
the necessity of any judicial order or permission or power, to collect rents, to eject tenants, to
ease or sell the mortgaged property/ies or any part thereof at the private sale without previous
notice or advertisement of any kind and execute the corresponding bills of sale, lease or other
agreements that may deemed convenient, to make repairs or improvements on the property/ies
and pay for the same and perform any other act which the LENDER may deemed convenient, for
the proper administration of the mortgaged property/ies. Any amount received the sale, disposal
or administration of the properties above mentioned may be applied to the payment of the
repairs, improvements, taxes and assessments and any other incidental expenses and obligations
and also the payment of the original indebtedness and interest thereon. The power therein
granted shall no be revoked during the life of this MORTGAGE, and all acts that may be
executed by the MORTGAGE also hereby agreed that the Commission on Audit or its authorized
representative shall withhold any money due or which may become due to the BORROWER or
debtor from the government or from any of its instrumentalities except those exempted by the
law from the attachment or execution apply the same in the settlement of any all amounts due to
the MORTFAGEE.
ARTICLE XI
ATTORNEY’S FEES AND EXPENSES
The BORROWER hereby aggress further that in all cases attorney’s fees are hereby fixed
at twenty-five (25%) percent of the total indebtedness that is unpaid or the unpaid SECURED
OBLIGATIONS which is no case shall less than P20,000.00, exclusive of the cost of the fees
allowed by law, and the expenses of collection shall in the obligation of the BORROWER and
shall with priority be paid to the LENDER out of any sums realized as rents and profits derived
from the mortgaged property/ies or from the proceeds realized from the sale of said property/ies
and this MORTGAGE shall likewise stands as security therefore.
ARTICLE XII
ADVANCES
It is also agreed that the MORTGAGE may advance for the account of the BORROWER
and/or DEBTOR such expenses, fees, taxes and insurance premiums due in case the
BORROWER and/or DEBTOR shall fail to pay them: the authority herein granted to the
LENDER to insure the property shall, however, be subject to the LENDER’s discretion to
insure it or not. The payment of the expenses, fees and taxes advanced by the MORTAGEE in
connection with the purpose indicated herein is also guaranteed by this MORTGAGE and to the
extend allowed by law, such amount advanced shall earn interest and charges at the rate imposed
on the principal amount of the loans/credit accommodation to which it relates. Any all advance
shall be payable on demand. In case of non-payment on the advances upon demand a penalty of
1% per month shall be charged on the amount due until fully paid.
ARTICLE XIII
PROHIBITION TO ALIENATE
The BORROWER shall neither lease the mortgaged property/ies for more than one year
nor sell or dispose of the same in any manner, without the written consent of the MORTGAGE,
the property/ies herein mortgaged, or any portion thereof, is/are leased for over one year or sold,
it shall be the obligation of the BORROWER to impose as a condition of the sale, alienation or
encumbrance that the vendee, or the party in whose favor the alienation or encumbrance to be
made, should take the property/ies subject to the obligation of the MORTGAGE ion the same
terms and conditions under which it is constituted, it being understood that the BORROWER is
not in any manner be relieved of his/her/its obligation to the LENDER under this MORTGAGE
by such sale, alienation encumbrance; on the contrary, both the vendor and the vendee or the
party in whose favor the alienation or encumbrance is made shall be jointly and severally liable
for said mortgage obligations. It shall also be incumbent upon the BORROWER to make it a
condition of sale or alienation that the vendee, or any other whose favor the alienation is made,
shall further agree, promise and bind himself/herself/itself to recognize and respect any
extension of the terms of the original mortgage granted by the LENDER in favor of the
BORROWER and such extended mortgage shall be considered as prior superior encumbrance as
the original mortgage. It is also further understood that should the BORROWER sell or in any
other manner alienation or encumber the mortgaged property/ies in violation of this agreement,
he/she it shall respond in damages to the LENDER.
ARTICLE XIV
INCREASE OF INTEREST RATE
The rate of interest charge on the obligation secured by the MORTGAGE as well as the
interest on the amount on which may have been advanced by the MORTGAGE, in accordance
with the provision hereof, shall be subject during the life of this contract to such an increase
within the rate allowed by law, as the LENDER may prescribe for its debtor.
ARTICLE XV
EXPROPRIATION
Should the property/ies herein mortgaged be expropriated by the Government of the
Philippines or by any department, branch, subdivision or instrumentality thereof, or by province,
municipality or township or by any persons, association or body incorporated duly authorized by
law to require property by eminent domain, all moneys paid or which may become payable on
account or in consideration of the expropriation of the property/ies mortgaged and/or any pieces
of real property or personal property given in exchange of property so expropriated shall
immediately delivered to the LENDER, which is hereby expressly authorized to collect said
moneys, or received such property from whomsoever they may be properly due and payable,
crediting the BORROWER only with cash thus received effective on the day the LENDER
received the same and reserving the property received in exchange for those expropriated for
such further action as may be necessary to convert them into cash and apply the same to the
accounts of the BORROWER. The BORROWER further covenants not to agree upon any
purchase or exchange in consideration of the property so expropriated without the written
consent of the LENDER.
ARTICLE XVI
EVENT OF LITIGATION INVOLVING MORTGAGED PROPERTIES
Should the LENDER become involved in any litigation which may have relation with
any or all of the properties mortgaged by virtue of this instrument, all expenses of the LENDER
in such litigation including a reasonable amount for attorney’s fees to be determined by the
LENDER shall be paid by the BORROWER and the mortgage shall stand as security thereof in
the event of such litigation, any and all obligations of the BORROWER shall likewise become
immediately due payable and defaulted.
ARTICLE XVII
STIPULATION ON ADDRESS OF BORROWER
All correspondence relative to this MORTGAGE, including demand letters, summonses,
subpoenas or notification of any judicial or extrajudicial actions shall be sent to the
BORROWER at the address given above or the address that may hereafter be given in writing by
the BORROWER to the LENDER and the mere act of sending any correspondence by mail or
personal delivery to the said address shall be valid and effective notice to the BORROWER for
all legal purposes, and the fact that any communication is not actually received by the
BORROWER or that it has been returned unclaimed to the LENDER, or that no person was
found at the address given, or that the address fictitious, or cannot be located, shall not excuse or
relieved the BORROWER from the effect of such notice.
ARTICLE XVIII
EXECUTION OF OTHER DOCUMENT
The BORROWER shall execute such other documents as may be required of him/her/it
by the LENDER to make effective this REAL ESTATE MORTGAGE.
ARTICLE XIX
PROHIBITION TO ALTER OR DEMOLISH BUILDING
The BORROWER shall not make any alteration upon or demolish any building herein
without prior written consent of the LENDER or remove any implements, machineries,
equipment, receptacles, instruments or the like completed in ARTICLE III hereof.
ARTICLE XX
VENUE OF AUCTION SALE
It is hereby agreed that in case of foreclosure of this MORTGAGE under Act.3135, as
amended, and the Presidential Decree No.385, the auction sale shall be held at the capital of the
province, if the property is within the territorial jurisdiction of the province concerned, or shall
be held in the city, if the property is within the territorial jurisdiction of the city concerned.
ARTICLE XXI
ACCOMMODATION MORTGAGE
Whenever this MORTGAGE is executed in accommodation of a DEBTOR other than the
BORROWER agree that this MORTGAGE shall stand as security for the renewal, extension of
payment of obligation secured by this MORTGAGE to its convention into any other credit
facility that may be agreed between the DEBTOR and the LENDER, as well as additional loans
or credit accommodation that may be granted by the LENDER to the DEBTOR without further
needs of amending the MORTGAGE and the DEBTOR is deemed to be Attorney-in-Fact of the
BORROWER for such purpose. The BORROWER further agrees that this MORTGAGE shall
also secure hi/her/its own personal obligations with the LENDER of whatever kind and nature,
whether direct or indirect, principal or secondary as appearing in the account books and record of
the LENDER as if this MORTGAGE were executed to secure the said personal obligations of
the BORROWER under the same terms and conditions. For this purpose, it is hereby agreed that
the term “DEBTOR” or any other word describing the principal obligator shall likewise mean
and include the term “BORROWER” and vice versa, as the context may require.
Executed in ____________________ this _______ days of ________,_______.
By:_____________________
NESTOR S. LEAL
LENDER
____________________________
BORROWER
SIGNED IN THE PRESENCE OF:
_______________________
________________________
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES
)
QUEZON CITY
) S.S.
At the above stated locality on this ________ day of ___________,__________,
before me personally appeared:
NAME
NEST BUILDERS
NESTOR S. LEAL
CTC NO.
________
________
DATE ISSUED
_____________
_____________
PLACE ISSUED
_____________
_____________
Known to me to be the same person/s who executed the foregoing instrument and
acknowledged the same to be his/her/their free and voluntary act and deed as well as that of the
corporation herein presented.
Said instrument refer to Real Estate Mortgage of __________________________
Parcel/s of land with all the buildings and improvements therein and consist of eight (8) pages,
including this page wherein the Acknowledgment is written, signed by the party/ies and their
witnesses on all pages within my notarial seal
NOTARY PUBLIC
Until December 31, 200
DOC NO. _____________
PAGE NO. _____________
BOOK NO._____________
SERIES OF 200