April 19, 2000

SPS Amelito Calimbas & Lenita Calimbas
Address: Blk. 12, lot 2 Reina Subd. Pampanga

Dear Sps. Gonzales:

Your application with us has been given favorable consideration subject to the following terms and conditions:

1.    Loan Amount : Php 850,000.0
2.    Term : Ten (10) years
3.    Interest Rate : 5.88% for the 1st year (valid for 1 month from date of approval); annual repricing thereafter based on PDSTF +6% or Overnight Lending Rate +6%, whichever is higher
4.    Repayment : Equal monthly amortization of principal and interest to start one month after full release of loan.
5.    Purpose: Construction
6.    Construction Period : One (1) Year only
7.    Collateral : To be registered First Real Estate Mortgage on TCT. No 014527861 particularly Lot 10, Blk 3 Road Villa Lina Subd. Angeles, Pampanga
8.    You shall execute at our office the following documents.
a.    Promissory Note (Construction)
b.    Disclosure Statement
c.    Loan and Mortgage Agreement
d.    Loan Schedule to the Loan and Mortgage Agreement
e.    Statement of Loan Releases
f.    Application for MRI and Fire Insurance

9.    Prior to loan annotation/release, you shall submit to Far West Bank the following documents with reference to the property offered as collateral:

a.    Owner’s Duplicate Copy of TCT under the name of Amelito Cruz Calimbas and Lenita Herrera Calimbas, (original)
b.    Original or Certified True Copy of Real Property Tax Declaration for land under borrowers’ name
c.    Updated Real Property Tax Receipt;
d.    Real Property Tax Clearance (origina).

10.    Borrower shall periodically submit the Real Estate Tax Receipts (RETR) showing payment of realty taxes on the title/s offered as collateral to the loan for the current year in full.  The latter shall be submitted to the Bank on or before March 31st of each corresponding year for as long as the loan is outstanding.

11.    Schedule of Releases

0% – 0
30% – 200,000.00
60% – 300,000.00
90% – 200,000.00
100% – 150,000.00

Staggered releases are further subject to:
–    Compliance to required percentage of construction completion for the staggered loan releases;
–    Procurement of Contractor’s All Risk (CAR) on the 2nd release of loan;
–    Procurement of Fire Insurance on the latest release;
–    Inspection fees to be paid by the client prior to the succeeding releases;
–    Payment of accrued interest every month to start one (1) month after the 1st loan release.  For your convenience, you have the option to have this debited from your account by accomplishing an Authority to Debit (ADA) from covering the monthly amortization, the accrued interest and other charges.

12.    Miscellaneous expenses should be paid before the release of the loan.

a.    Application and Processing Fee – Php 3,000.00
b.    Appraisal Fee – paid already
c.    Doc. Stamp (PN) – Php 4,250.00
d.    MRI Annual Premium – Php 4,250.00
e.    Registration Fees – Php 15,076.28
f.    Notarial Fee (Undertaking) – Php 500.00
g.    Contractor’s All Risk – Php 1,864.35
h.    Fire Insurance – to be billed later
i.    Inspection Fees – to be billed later

Total ————— Php 28,940.63

13.    Expected Monthly Amortization (inclusive of advance insurance premium) is computed as follows:

Loan Amount of Php 850,000.00, 10 years @ 5.88% for the 1st year Php 9,385.00
Insurance Premiums : MRI of Php 4,250 / 12 months Php 355.00
Fire Insurance – to be billed later
Total —- Php 9,740.60

–    For insurance renewals (2nd year and onwards), the annual premium payments shall be collected in advance from the borrower on monthly basis together with the loan amortization.  The advance collection of the insurance premium shall begin immediately on the first month of the repayment period.
–    Please note that the monthly amortization would determined upon actual release of loan proceeds. MRI premium is based on standard rate quotation and are also subject to final approval upon release of loan.
–    Since your loan is being released on a staggered basis, the payment of monthly accrued interest shall commence one (1) month after the first release until full release has been made  One month after final release of the loan proceeds, the payment of the monthly amortization of principal and interest shall begin.

14.    Subsequently, you can open a settlement account with Far West Bank and submit an authority to debit covering the monthly amortization and advance insurance payment for the following year.

For account opening, you are required to submit the following at any FWBC branch
–    Loan approval letter and or endorsement letter
–    One (1) valid (government issued) photo bearing ID
One (1) 1×1 or 2×2 ID picture

•    Please note that this settlement account is a non-interest bearing deposit and requires no minimum initial deposit and maintaining balance.

15.    Subsequently, you can also choose to endorse your current life and or fire insurance provided however that:

–    It is from an insurance company accredited with Far West Bank;
–    For life insurance, the principal amount of coverage is equal to your approved loan amount;
–    For fire insurance, the amount of coverage is equal to the value of improvement appraised by the bank;
–    You shall submit the original copy of the insurance policies along with the endorsement letter (indicating EWBC as the mortgagee) and original or certified true copy of the updated insurance premium payment;
–    For succeeding years, failure to submit insurance policy renewals shall give the bank the right to procure from its accredited insurance provider the necessary coverages.

16.    Early pay-off (closure) of loan is subject to 3% processing fee based on outstanding loan balance.
17.    Bank guarantee issued to the seller / developer (if applicable), is unenforceable unless the following have a favorable result:
–    Title verification report (TVR)
–    Mortgage Redemption Insurance (MRI)

18.    Collateral offered is subject to favorable title verification.
19.    Aside from collateral requirements, you are further required to submit the following:
–    One (1) valid (government issued) photo bearing ID0 for both spouses
–    Clearance certificate of subdivision association dues
–    Updated ITR yr. 2010 and 2011 for both spouses
–    Notarized affidavit to mortgage family home
–    Building permit

If, for any reason, the mortgage cannot be annotated/registered, we shall return all submitted documents and refundable fees upon your demand and presentation of the original copy of our Official Receipt of Payment.

This approval is valid only for 90 days from date of approval

Should the above terms and conditions be acceptable to you, please indicate your conformity by signing on all pages and return to us our conformed copy.

The Bank reserves the right to amend any of the aforementioned stipulation or to cancel this approval upon due notice to you, should there be supervening circumstances which we believe will warrant such changes or cancellations.

Thank you for giving us the opportunity to be of service to you.

Very truly yours,

Far West Banking Corp.

Emardo M. Garcia
Head

Conforme:

SPS Amelito Calimbas & Lenita Calimbas
Borrower(s) / Mortgagor(s)