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Mortgage And Security Agreement for Philippines

Mortgage And Security Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that creates a security interest in real property to secure the performance of an obligation, typically a loan. The agreement details the terms and conditions under which the property serves as collateral, including the rights and obligations of both the mortgagor and mortgagee, enforcement mechanisms, and compliance requirements with Philippine banking and property laws. It incorporates provisions from the Civil Code of the Philippines and relevant banking regulations, particularly regarding registration requirements and foreclosure procedures.

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What is a Mortgage And Security Agreement?

The Mortgage and Security Agreement is a crucial legal instrument in Philippine secured lending transactions, used to create and perfect a security interest in real property. This document is essential when a lender requires collateral to secure a loan or other financial obligation, typically in real estate financing, commercial lending, or property development. The agreement must comply with the Civil Code of the Philippines, the Property Registration Decree, and relevant banking regulations issued by the Bangko Sentral ng Pilipinas. It outlines the property details, secured obligations, parties' rights and responsibilities, enforcement mechanisms, and foreclosure procedures. The document is particularly important in the Philippine context due to specific local requirements for property registration and the unique aspects of the country's mortgage laws.

What sections should be included in a Mortgage And Security Agreement?

1. Parties: Identification of the Mortgagor, Mortgagee, and their respective details including addresses for notices

2. Background: Context of the mortgage agreement, including reference to any underlying loan agreement or facility

3. Definitions: Definitions of key terms used throughout the agreement

4. The Mortgage: Core terms of the mortgage, including the amount secured and description of the mortgaged property

5. Security Interest: Creation and scope of the security interest, including the obligations being secured

6. Representations and Warranties: Mortgagor's declarations regarding ownership, authority, and status of the property

7. Covenants: Ongoing obligations of the Mortgagor regarding property maintenance, insurance, taxes, and other duties

8. Insurance: Requirements for property insurance, naming of loss payee, and handling of insurance proceeds

9. Events of Default: Circumstances constituting default and their consequences

10. Enforcement Rights: Mortgagee's rights upon default, including foreclosure procedures under Act 3135

11. Registration and Stamp Duty: Requirements for registration and payment of associated fees

12. Notices: Process and requirements for giving notices under the agreement

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

14. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement

What sections are optional to include in a Mortgage And Security Agreement?

1. Third Party Security: Used when the mortgagor is not the principal debtor, defining the relationship between parties

2. Cross-Default: Include when the mortgage secures multiple facilities or relates to other security agreements

3. Assignment and Transfer: Detailed provisions for when the mortgage may be assigned or transferred, particularly relevant for bank mortgages

4. Further Assurance: Additional security provisions when complex property rights are involved

5. Environmental Provisions: Required for commercial properties or when environmental risks are a concern

6. Negative Pledge: Restrictions on creating additional security over the property, used in commercial mortgages

7. Power of Attorney: Appointment of mortgagee as attorney-in-fact for specific purposes, often used in commercial contexts

What schedules should be included in a Mortgage And Security Agreement?

1. Schedule 1 - Property Description: Detailed technical description of the mortgaged property, including boundaries and title details

2. Schedule 2 - Secured Obligations: Detailed description of the obligations secured by the mortgage

3. Schedule 3 - Form of Notice: Template forms for various notices required under the agreement

4. Schedule 4 - Insurance Requirements: Detailed specifications of required insurance coverage

5. Schedule 5 - Existing Encumbrances: List of any existing liens or encumbrances on the property

6. Appendix A - Property Documents: List of title documents and other property-related certificates

7. Appendix B - Required Authorizations: List of required governmental and regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




































Clauses






























Relevant Industries

Banking

Real Estate

Financial Services

Construction

Property Development

Agriculture

Manufacturing

Retail

Hospitality

Commercial Property

Relevant Teams

Legal

Real Estate

Credit Risk

Compliance

Finance

Corporate Banking

Retail Banking

Property Management

Risk Management

Business Development

Relevant Roles

Legal Counsel

Corporate Lawyer

Real Estate Manager

Credit Risk Officer

Loan Officer

Mortgage Specialist

Property Manager

Compliance Officer

Banking Executive

Real Estate Developer

Chief Financial Officer

Risk Manager

Credit Analyst

Business Development Manager

Real Estate Attorney

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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