PROMISSORY NOTE LOAN AND DISCLOSURE AGREEMENT

Agreement Number:

Order Number:

This Loan Facility Agreement (“Agreement”) is entered into, by and between:

1. OWNBANK, THE RURAL BANK OF CAVITE CITY, INC, a bank registered and supervised by the Bangko Sentral ng Pilipinas, having its registered office at 505 P. Burgos Avenue, Caridad, Cavite City (hereinafter referred to as the “Lender”, “Bank”, “OwnBank” or “we”).

1. ______________ with address at ___________ and with email address of ______________, an individual identified in __________ mobile application (hereinafter referred to as the “Borrower” or “you”).

The Lender and Borrower hereinafter collectively referred to as the “Parties” and individually as “Party”, hereby agree to enter into this Loan Agreement this _______________.

RECITALS

1. Whereas the Borrower intends to obtain a Loan from the Lender for personal use and the Lender intends to provide a Loan to the Borrower.

1. Whereas the Borrower intends to obtain such Loan and the Lender intends to provide such Loan through the mobile application owned by the Bank (hereinafter referred to as the “Platform/s”).

1. Whereas the Borrower shall directly pay their loan obligations as it falls due to OwnBank, The Rural Bank of Cavite City Inc, the Lender.

1. Whereas the Parties have agreed to govern the terms and conditions for the provision of the Loan from the Lender to the Borrower based on the Loan Agreement between the Lender and the Borrower.

THEREFORE, the Parties hereby agree as follows:

1. DISCLOSURE STATEMENT ON LOAN/CREDIT TRANSACTION

(As a required under R.A. 3765, Truth in Lending Act)

NAME OF BORROWER:

₱

ADDRESS:

1. LOAN AMOUNT

₱ ₱

2. OTHER BANK CHARGES/DEDUCTIONS COLLECTED

1. Documentary Stamp Tax

1. Disbursement Fee

₱

3. NET PROCEEDS OF LOAN

₱
[ ] months

4. SCHEDULE OF PAYMENTS & INSTALLMENT DETAILS

1. Amount of Installment

b. Frequency

c. Tenure (Months)

d. Commencement of 1st Installment

e. Due date

Please see attached amortization schedule below

%%

5. EFFECTIVE INTEREST RATE (Interest and other Charges)

a. Contractual Interest Rate

b. Effective Interest Rate（Monthly）

The Effective Interest Rate is higher than the Contractual Interest Rate because of item 2 above. Detailed explanation for Interest rate calculation is available in the Terms and Conditions.

/day

6. CONDITIONAL CHARGES THAT MAY BE IMPOSED

a. Default Interest Rate/ Late Charge

The amount of Installment above is subject to change pursuant to any variation of the Fixed Interest Rate and/or amendments to the terms and conditions of the Facility. All fees stipulated in this agreement, including but not limited to disbursement fee and late payment fee, are exclusive of Gross Receipt Tax (GRT). The applicable GRT on such fees shall be the sole account of the Borrower.

Please note that the Facility is disbursed on the basis of your confirmation that you have read and Privacy Notice issued by Own Bank Inc., The Product Disclosure Sheets and the Bank’s Terms and Conditions given to you during your application and/or which are set out in the Bank’s website at https://www.ownbank.com/ and that you have confirmed your agreement to our Privacy Notice. Understanding of the Product Disclosure Sheets and agreed to be bound by the terms and conditions governing the Facility.

Amortization Schedule

Loan Amount₱Monthly Installment₱Contractual Rate (Monthly)% Other Charges₱No. of Monthly Installment months

date
(A)Principal
(B)Interest and Fee
(C)Total
(D)04-22-2025

Legends

1. Repayment date
2. Amortized principal amount
3. Amortized interest amount and other charges
4. Total monthly amortization

7. Truth in Lending Disclosure and Interest Computation

The Borrower acknowledges and agrees that the Lender shall comply with the requirements of Bangko Sentral ng Pilipinas (BSP) Circular No. 730, Series of 2011, and other relevant BSP regulation or issuances, including the following:

1. Interest Computation Method

Interest shall be computed based on the outstanding principal balance of the loan at the beginning of each interest or installment period. For loans payable in installments, interest per period shall be calculated based on the remaining principal at the start of each installment cycle. Further the computation of the interest shall also be computed according to applicable BSP regulations if any.

1. Disclosure of Effective Interest Rate (EIR)

The Lender shall disclose to the Borrower the Effective Interest Rate (EIR), representing the true cost of credit, calculated in accordance with the Philippine Accounting Standards (PAS) and BSP-prescribed methodologies. The EIR shall be presented in the Loan Disclosure Statement and other relevant documentation.

1. Finance Charges

All finance charges—including interest, service fees, discounts, and other charges incident to the extension of credit—shall be clearly itemized and disclosed in the Loan Disclosure Statement.

1. Consistency Across Documents

All loan-related documents, marketing materials, and repayment schedules shall reflect the interest computation method and EIR disclosure in a manner consistent with this provision and BSP regulations.

1. Borrower Acknowledgment

The Borrower confirms receipt and understanding of the Loan Disclosure Statement, including the EIR and all applicable finance charges, prior to the execution of this Agreement.

1. Sample Computation of EIR
   For illustration purposes, a sample computation of EIR is attached to this Agreement as Annex “____”.

II. METHOD OF DISBURSEMENT.

Upon approval of the Loan, the Bank shall automatically open and maintain a Settlement Deposit Account in the name of the Borrower. The purpose of this account is to record all disbursements, repayments, interest accruals, fees, charges, and other amounts in connection with the Credit Facilities granted under this Agreement, and to serve as the default account where Loan proceeds shall be credited.

The Borrower, however, shall have the option to nominate an alternative deposit account maintained with another financial institution for the crediting of the Loan proceeds, provided that such account is duly verified and accepted by the Bank in accordance with its disbursement protocols. In the event that the Borrower elects to nominate such alternative account, the Bank shall disburse the Loan proceeds directly to said account through an automated fund transfer system integrated within the Mocasa mobile application, without any manual intervention or discretionary control by the Channeling Manager.

All entries made in the Settlement Deposit Account, including but not limited to the crediting of Loan proceeds, shall constitute prima facie evidence of the Borrower’s obligations in relation to the Credit Facilities, subject to verification and reconciliation in accordance with the terms of this Agreement.

III. LOAN REPAYMENTS.

1. PAYMENT DUE DATE OF MONTHLY INSTALLMENTS

Each monthly repayment shall be made on or before the Due Date. The first monthly payment will be paid based on the schedule provided in the Payment Schedule as displayed in the Bank’s mobile application or any other platform of the Bank. No other platform or gateways shall be used by the Borrower to make the repayment, otherwise such repayment may be held invalid and void.

1. MODE OF PAYMENT.

Payment of the monthly installments due shall be automatically debited from the Borrower's designated Deposit Account with the Bank without need of prior notice or demand. The Borrower undertakes to ensure that the Loan Account contains sufficient and available funds at least one (1) banking day prior to each due date to facilitate successful debit.

The Borrower hereby irrevocably authorizes the Bank to automatically debit from the Borrower’s Deposit Account the monthly installments due under this Agreement, including principal, interest, and any applicable fees or charges, on each scheduled due date as reflected in the Schedule of Payments and Installment Details (Section I, Par. 4) above.

In the event of a failed debit due to insufficient funds, account closure, or any other reason not attributable to the Bank, the Borrower shall be deemed in default and shall be liable for applicable penalties, interest, and other charges, without prejudice to the Bank’s right to pursue legal remedies or alternative collection measures.

Any change in the Loan Account shall require prior written notice to the Bank and execution of a new Auto-Debit Enrollment Form. The Bank shall not be liable for any failure to debit arising from unnotified account changes.

1. PREPAYMENT

The Borrower may prepay the outstanding balance in full or prepay more than the payment due before the payment due date at any time without premium or penalty. All applicable fees and charges under this Agreement shall continue to apply and be computed based on the agreed terms of the Loan, regardless of any prepayment made.

Any such prepayment that exceeds the scheduled repayment or any prepayment in parts shall be deemed to be advance payment. Such amounts of advance payment if sufficient to cover the scheduled prepayment(s) will extend the schedule Due Date to a later date.

1. APPLICATION OF PAYMENT

Any and all payments made by you shall be applied on the following items in the order they are listed:

1. Any stamp duty or other charges permitted by law.
2. In payment of enforcement expenses
3. Late payment penalties
4. Past due unpaid items from the oldest due date to the latest in the following order of items:
1. Service Fees
5. Interest
6. Principal

III. LOAN RECONSTRUCTION/EXTENSIONS/ RENEWALS.

No loan reconstruction/extension or renewal of this Loan Agreement shall be valid and binding unless approved in writing by the authorized officer(s) of the Lender and as agreed to by the Borrower in accordance with the internal policies of the Lender. Expenses for the loan reconstruction/extension/renewals shall be borne by the Borrower.

IV. LATE PAYMENT FEE.

The late payment fee is exclusive of Gross Receipts Tax (GRT). The applicable GRT on the late payment fee shall be for the sole account of the Borrower.　In the event that the Borrower fails to clear their dues within two calendar days past the due date as specified in the agreement, a late payment fee shall be charged to the Borrower as follows:

1. Two-Day Exemption:

For the first two days after the due date, no late payment fee shall be imposed, providing the Borrower a grace period to settle the outstanding balance without incurring any penalties.

1. From the 3rd Day:

Late payment fee shall apply 5% monthly of the outstanding unpaid balance of the principal.

1. Ceiling of Late Payment Fee:

The late payment fee shall not exceed fifty percent (50%) of the unpaid amount. Once the late payment fee reaches this ceiling, it shall not increase further, regardless of the outstanding balance.

1. Monthly Cumulation:

If the Borrower continues to fail in repaying the outstanding balance beyond the grace period threshold, the late payment fee shall be cumulated and charged until the dues are fully settled.

(5) The late payment fee is exclusive of Gross Receipts Tax (GRT). The applicable GRT on the late payment fee shall be for the sole account of the Borrower.

V. COLLECTION OF PAYMENT.

The Borrower may be contacted by the Collection Agency, which shall be selected by the Bank, after the due date of the loan to remind the Borrower of the said due date. In case the Borrower cannot be contacted, the Guarantors/Co-makers of the Borrower may be reminded under such circumstances

1. Upon the occurrence of an event of default, as described in the previous section, the Bank may, at its sole discretion and without need of notice or demand, _______to collect all and any outstanding sums due to the Lender in order to protect and enforce the Lender’s rights under this Agreement and applicable laws.

1. In the event of delay or failure on the Borrower’s part to settle payment of the obligation, the Borrower hereby acknowledge and authorize the Bank’s Collection Department or a debt collections agency authorized by the Bank, to contact the Borrower personally, using any and all information you have provided during the Application process for the loan and/or entered via the Bank’s mobile application or any other platform the borrower may have used to access or which have been obtained from the Borrower in any other way in the course of submitting the Borrower’s loan application such as, among others, those gathered through our verification process to determine the Borrower’s eligibility for the loan. The Bank reserves its right to contact the Borrower, in accordance with applicable regulations, by any method necessary including, but not limited to, by written notices, email, phone call or SMS.

1. Attorney's fees. In case of resort to court and/or legal proceedings to recover any unpaid obligation under this Loan Agreement is commenced, the Borrower agrees to pay, as and for attorney's fees, a sum equivalent to fifteen percent (15%) of the total amount due under this Loan Agreement but in no case less than TEN THOUSAND PESOS (PhP 10,000) plus expenses and costs of collection. The fee is exclusive of Gross Receipts Tax (GRT). The applicable GRT shall be for the sole account of the Borrower.　

VI. RIGHTS AND OBLIGATIONS OF THE PARTIES.

1. The Lender.

The Lender shall have the right to:

1. receive full payment of the principal amount of the Loan, the Interest and, if any, other interests that the Lender may impose from time to time.
2. without prejudice to the generality of any other provision of this Agreement, to obtain information or data relating to the Borrower (including, but not limited to, any changes in the information or data of Borrower) as it may require, including, but not limited to, in relation to the Lender’s Know Your Customer (“KYC”) process.
3. without limiting the generality of any other provision of this Agreement, at any time refuse, restrict, block, freeze, delay, and/or cancel any transaction, processing, funds, accounts, and/or disclose information about the same to a regulator or otherwise required by applicable laws, if it deems any of the foregoing in actual or potential breach of applicable laws, without need of providing the Borrower any reason.

The Lender shall be obligated to:

1. provide the Loan to the Borrower in accordance with this Agreement;
2. comply with and implement all provisions under the Agreement in connection with its granting of the Loan.

1. The Borrower

The Borrower shall have the right to:

1. receive the Loan from the Lender under and subject to this Agreement; and
2. request and receive information relating to the Loan in order to comply with his/her obligations under this Agreement, including, but not limited to, information relating to repayment of the Loan.

The Borrower shall be obligated to:

1. Pay on time the full amounts of all payment obligations arising from or as a result of this Agreement, including, but not limited to, the principal amount, late payment fees, all interest and service fees, transfer fees, collection and enforcement expenses, other fees and charges, and any other interest the Lender may impose from time to time, in accordance with the schedule provided in the Payment Schedule as displayed in the Platforms. The Lender may, subject to applicable laws, regulations and prior notice to the borrower, reasonably adjust the interest rates, fees, penalties, expenses, and costs to reflect prevailing market conditions, regulatory requirements, or changes in the Bank’s operating policies.
2. Promptly furnish the Lender (and the Borrower hereby authorizes the Lender to require any third party to furnish such information on the Borrower’s behalf) such information and documents as the Lender may require, in the form, substance, manner, method, and frequency that the Lender may prescribe. This includes, but is not limited to, statements of the Borrower’s assets, liabilities, income and/or expenses; income tax returns (collectively, “ITRs”) duly stamped received by the Bureau of Internal Revenue (“BIR”); and financial statements of the Borrower’s business (audited or unaudited, or as submitted to the BIR). The Borrower irrevocably waives the confidentiality of his/her customer information and authorizes the Lender to conduct random verification with the BIR to establish the authenticity of such ITRs and/or financial statements in accordance to the applicable laws and regulations.
3. Promptly notify the Lender in writing of any change in the Borrower’s data, information, or circumstances previously disclosed to the Lender, including but not limited to financial information, without prejudice to any action the Lender may take or any remedy the Lender may have in relation to such changes.
4. Perform all actions and execute and deliver all documents necessary to give full force and effect to this Agreement and to uphold the Lender’s rights and remedies hereunder; to ensure compliance with applicable laws; to adhere to the Lender’s requirements, policies, and procedures; and to satisfy any additional requirements the Lender may impose from time to time.
5. Authorize the Lender to share the information provided in connection with this Agreement secured by the Platforms necessary for processing and compliance purposes. Furthermore, the Borrower acknowledges and agrees that the Lender may request, obtain, and secure additional information or documentation, as needed, to fulfill KYC and other regulatory requirements in accordance with applicable laws and banking regulations. The Borrower consents to such actions and undertakes to provide any additional requirements promptly upon request.

1. Change in circumstances or legality of the Loan

If it becomes unlawful for the Lender to maintain the Loan or perform its obligations under this Agreement, the Loan shall be immediately canceled or terminated without prejudice to the other rights and remedies of the Lender, and the Borrower shall prepay all amounts due in relation to the Loan (to the extent permitted under applicable laws), including but not limited to, accrued interest up to the date of full prepayment.

1. Change of Lender

The Borrower acknowledges and agrees that the Lender may, at any time, assign or transfer its rights and obligations under this Agreement to another lender or financial institution. In such event, all references to the “Lender” in this Agreement shall automatically refer to the transferee lender without need of further action from the Borrower. The Borrower shall be duly notified of such assignment or transfer prior to its effectivity, it being understood that such assignment or transfer shall remain valid and binding notwithstanding any delay or failure in the giving or receipt of such notice.

The Borrower further agrees that beginning from the next installment period following a default of thirty (30) calendar days past due (DPD30), the rights and obligations related to such unpaid portion of the Loan may likewise be transferred to the transferee lender. In such case, the transferee lender shall be subrogated to the rights of the original Lender, strictly to the extent of the unpaid principal and 18% annual interest, and no other charges, penalties, or fees shall be imposed or borne by the transferee lender.

Further, the Borrower shall be notified in the event of any change in the identity of the lender during the term of the agreement.

VII. PERSONAL DATA.

The Borrower agrees that his/her personal data and any other personal data the Borrower discloses (including, but not limited to, the personal data of the Borrower’s secondary contacts or character references) (collectively, “Other Personal Data”) may be collected, received, processed, used and/or disclosed by and to the Lender, its affiliates or collections agents (collectively, “Recipients”) for the purpose of giving effect to this Agreement. Notwithstanding any other clause in this Agreement, the Borrower consents to the use, disclosure and/or processing of his/her personal data and the Other Personal Data as described in, in accordance with and/or incidental to each of the Recipients’ privacy notices, privacy policies and/or any data sharing agreement among them, as these may be amended from time to time (collectively, “Privacy Policies”), as it may be amended from time to time. The Borrower represents and warrants that the Borrower has obtained from the relevant data subjects the required consents under Data Protection Laws, including, but not limited to, the consent to the terms of this provision.

Account Opening and Data Use for Loan Payment Purposes

Upon execution of this Agreement and the corresponding _________ Agreement, the Bank shall utilize the personal and financial information provided by the Borrower to facilitate the opening of a deposit account with the Bank, solely for the purpose of administering and effecting payments related to the Loan.

The Borrower further consents to the collection, processing, and use of their personal data by the Bank, strictly for the purposes of loan administration and account servicing, in accordance with applicable data privacy laws and regulations, including the Data Privacy Act of 2012 and its implementing rules.

All payments due under the Loan shall be made through the designated account, unless otherwise agreed in writing by the Parties.

VIII. GENERAL TERMS.

1. No waiver

Our failure to enforce this Agreement shall not constitute a waiver of these terms, and such failure shall not affect our right to later enforce this Agreement.

1. Severability

If at any time any provision of this Agreement becomes illegal, invalid or unenforceable in any respect, the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby, and shall continue in force as if such illegal, invalid or unenforceable provision was severed from this Agreement.

1. Rights of third parties

A person or entity who is not a party to this Agreement shall have no right to enforce any term herein, regardless of whether such person or entity has been identified by name, as a member of a class or as answering a particular description. For the avoidance of doubt, nothing in this clause shall affect the rights of any permitted assignee or transferee of this Agreement.

1. Customer Hotline mechanism

To enhance transparency and ensure prompt resolution of borrower concerns, a dedicated Customer Hotline (02) 8683-7770 shall be made available to borrowers to seek clarification on disclosures, communicate directly with the actual creditor for inquiries or complaints, and report issues related to loan application, servicing, or repayment; this hotline shall operate during regular business hours, be staffed by qualified personnel, and follow established complaint-handling procedures aligned with applicable service standards.

1. Governing Law and Disputes

The Loan Agreement and/or the Loan transaction of the Borrower shall be governed by the laws of the Republic of the Philippines.

This Loan Agreement and/or the Loan transaction of the Borrower shall be governed by and construed in accordance with the laws of the Republic of the Philippines.

The Parties shall exert their best efforts to amicably settle any dispute, controversy, or claim arising out of or in connection with this Agreement. Should such efforts fail, the Parties may, by mutual written agreement, submit the dispute to voluntary arbitration under the rules of a duly recognized arbitration body in the Philippines, provided that participation in arbitration shall not be mandatory and shall not preclude either Party from directly availing of judicial remedies.

For clarity, the Borrower is hereby informed that it retains the right to seek judicial relief notwithstanding any agreement to arbitrate. In the event that arbitration does not fully and finally resolve the dispute, or if the Parties elect to pursue judicial remedies, any legal action, suit, or proceeding arising from or relating to this Agreement shall be filed exclusively in the courts of competent jurisdiction in Taguig City, Philippines. The Parties irrevocably submit to the exclusive jurisdiction of such courts and expressly waive any objection based on improper venue or forum non conveniens.

Parties also recognize that in certain situations, another venue may be more appropriate or convenient. Accordingly, legal proceedings may likewise be initiated in another venue if the Borrower has obtained the Bank’s express written consent allowing such filing, in which case such consent shall be deemed as an accommodation made in good faith to address the circumstances of both Parties.

The Borrower further agrees that any dispute resolution proceedings shall be conducted only on an individual basis and not in a class, consolidated, or representative action. To the fullest extent permitted by law, no claim may be brought against the Lender or its Indemnities under this Agreement after one (1) year from the date of occurrence of the matter giving rise to the claim. The Parties acknowledge that, if applicable law, regulation, or a final order of a competent judicial or regulatory body expressly permits the filing of a claim beyond the one-year period, such right shall remain available to the Borrower.

1. Injunctive Relief

We may seek immediate injunctive relief if we make a good faith determination that a breach or non-performance is such that a temporary restraining order or other immediate injunctive relief is an appropriate or adequate remedy without prejudice to the rights of the Borrower under applicable law.

1. Correction of errors

Any typographical, clerical or other error or omission in any acceptance, invoice or other document on our part shall be subject to correction without any liability on our part.

1. Entire agreement

This Agreement shall constitute the entire agreement between you and us relating to the subject matter hereof and supersedes and replaces in full all prior understandings, communications and agreements with respect to the subject matter hereof.

1. Binding and conclusive

You acknowledge and consent the Lender to conduct certain activities in the process of your application, obtaining, repayment of the Credit Facility (e.g., collecting and verifying your KYC documents, making disbursement of loan to you through the Bank’s platform, receiving and collecting payments from you, and related technical supports, etc.).

You acknowledge and agree that any records (including records of any telephone conversations relating to the Bank’s or any other platform the borrower may have used to access the Bank's services (if any)) maintained by us and/or our service providers relating to or in connection with the Bank’s mobile application or any other platform the borrower may have used to access Bank's services, shall be binding and conclusive on you for all purposes whatsoever and shall be conclusive evidence of any information and/or data transmitted between the Bank and you. You hereby agree that all such records are admissible in evidence and that you shall not challenge or dispute the admissibility, reliability, accuracy or the authenticity of such records merely on the basis that such records are in electronic form or are the output of a computer system, and you hereby waive any of your rights, if any, to so object.

1. Sub-contracting and delegation

The Bank reserves the right to delegate or sub-contract the performance of any of our functions or obligations in connection with its platform or any other platform the borrower may have used to access Bank's services, to any service provider, subcontractor and/or agent on such terms as we may deem appropriate

1. Assignment

You may not assign your rights or transfer your obligations under this Agreement without our prior written consent. We may assign our rights or transfer our obligations under this Agreement to any third party at our sole discretion.

1. Force Majeure

The Bank shall not be liable for non-performance, error, interruption or delay in the performance of our obligations under this Agreement (or any part thereof) or for any inaccuracy, unreliability or unsuitability of any other platform the borrower may have used to access Bank's services if this is due, in whole or in part, directly or indirectly to an event or failure which is beyond our reasonable control.

1. The Bank any time, may update the Terms and Conditions upon notice to the Borrower, and such amendments shall bind the Borrower, provided that bank posts the update through its website.

1. Other Borrower’s Obligation: the Borrower authorizes The Bank to share the information provided in connection with this agreement secured by the platforms necessary for processing and compliance purposes. Furthermore, the Borrower acknowledges and agrees that the Bank may request, obtain, and secure additional information or documentation, as needed, to fulfill Know Your Customer (KYC) and other regulatory requirements in accordance with applicable laws and banking regulations. The Borrower consents to such actions and undertakes to provide any additional requirements promptly upon request.

I ACKNOWLEDGE THAT I HAVE READ THIS LOAN AND DISCLOSURE AGREEMENT PRIOR TO SUBMITTING MY LOAN APPLICATION AND THAT I UNDERSTAND AND FULLY AGREE TO ITS TERMS AND CONDITION.

_____________________________
Printed Name and Signature / Date
Borrower

OWNBANK, THE RURAL BANK OF CAVITE CITY INC
505 P. Burgos Avenue, Caridad, Cavite City
+63 (02) 7777 0111
www.ownbank.com.ph
Lender