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The No Interest Promissory Note serves as a formal documentation of interest-free loan arrangements in the Philippines, commonly used in family loans, religious-compliant financing, or business arrangements where interest charges are intentionally avoided. This document, while simpler than interest-bearing notes, must still comply with Philippine banking and financial regulations, including the Civil Code and Negotiable Instruments Law. It typically includes the loan amount, payment schedule, default provisions, and explicit statements regarding its interest-free nature. The document is particularly valuable in situations where parties wish to maintain formal documentation of the debt while ensuring no interest obligations are created, whether for personal, religious, or business reasons.

1. Parties: Identifies the Lender and Borrower with their complete legal names and addresses

2. Background: Brief context of the loan arrangement and acknowledgment that this is an interest-free loan

3. Definitions: Defines key terms used in the document

4. Promise to Pay: Clear statement of the principal amount and explicit confirmation that no interest will be charged

5. Payment Terms: Specifies the payment schedule, including due date(s) and payment method

6. No Interest Provision: Explicit statement that no interest will be charged for the entire duration of the loan

7. Default: Consequences of failing to make payments as scheduled

8. Representations and Warranties: Basic representations about capacity to enter into the agreement and validity of the obligation

9. Governing Law: Specifies that Philippine law governs the promissory note

10. Execution: Signature blocks and date of execution