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Promissory Note To Follow Documents for Philippines

Promissory Note To Follow Documents Template for Philippines

A Promissory Note To Follow Documents (PNTD) is a specialized financial instrument used in Philippine trade finance where the maker commits to pay a specified sum while awaiting the delivery of underlying trade documents. Governed by Philippine law, particularly the Negotiable Instruments Law (Act No. 2031) and banking regulations, this document serves as a binding promise to pay while accommodating the practical delays in international trade documentation. It includes specific provisions for document delivery, payment terms, and security measures, making it a crucial tool in trade finance operations where immediate document availability is not feasible.

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What is a Promissory Note To Follow Documents?

The Promissory Note To Follow Documents (PNTD) is a vital instrument in Philippine trade finance, designed to bridge the timing gap between payment commitment and document delivery in international trade transactions. This document type is particularly relevant when businesses need to proceed with financial commitments while awaiting the arrival of original shipping, insurance, or other trade documents. Under Philippine law, the PNTD combines elements of a standard promissory note with specific provisions for pending document delivery, making it especially useful in import/export transactions. It provides security to the payee while giving the maker access to financing or goods before all documentation is complete. The document must comply with both the Negotiable Instruments Law (Act No. 2031) and banking regulations set by the Bangko Sentral ng Pilipinas.

What sections should be included in a Promissory Note To Follow Documents?

1. Date and Place of Execution: Specific date and location where the PNTD is executed

2. Parties: Full legal names and addresses of the maker (promissor) and payee (promissee)

3. Promise to Pay: Unconditional promise to pay a specific sum, including currency denomination

4. Payment Terms: Details of when and how payment will be made, including maturity date and payment location

5. Reference to Documents: Specific mention of the documents to follow and their relation to the underlying transaction

6. Document Delivery Terms: Timeline and process for delivery of pending documents

7. Interest Rate: Specified interest rate and calculation method

8. Default Provisions: Consequences of non-payment or breach of terms

9. Signature Block: Space for signatures of the maker and any witnesses

What sections are optional to include in a Promissory Note To Follow Documents?

1. Security Provisions: Additional security arrangements or collateral details, used when extra security is required

2. Document Verification Process: Detailed process for verifying documents upon receipt, used in high-value transactions

3. Acceleration Clause: Conditions under which the entire amount becomes immediately due, used for higher-risk transactions

4. Force Majeure: Provisions for unforeseen circumstances affecting document delivery, used in international transactions

5. Assignment Rights: Terms regarding the right to assign the note, used when transferability is important

6. Dispute Resolution: Specific procedures for resolving disputes, used in complex transactions

What schedules should be included in a Promissory Note To Follow Documents?

1. Schedule A - Transaction Details: Details of the underlying commercial transaction

2. Schedule B - Document List: Comprehensive list of documents to be delivered

3. Schedule C - Payment Schedule: Detailed payment terms if involving multiple installments

4. Appendix 1 - Document Requirements: Specific requirements and formats for each document to be delivered

5. Appendix 2 - Specimen Signatures: Authorized signatures for document verification

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

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses
























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Wholesale Trade

Commodity Trading

Shipping and Logistics

Agricultural Trade

Mining and Resources

Industrial Manufacturing

Relevant Teams

Trade Finance

International Banking

Legal

Compliance

Credit Risk

Treasury Operations

Trade Operations

Documentary Credits

Corporate Banking

Transaction Banking

Relevant Roles

Trade Finance Manager

International Banking Officer

Documentary Credits Specialist

Compliance Officer

Credit Risk Manager

Treasury Manager

Import/Export Manager

Trade Operations Officer

Legal Counsel

Financial Controller

Banking Relationship Manager

Documentary Collections Officer

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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