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Collection Agreement
SHFC agreement for collection
Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: COLLECTION AGREEMENT
This Agreement is made and entered into by and between:
SOCIAL HOUSING FINANCE CORPORATION, a government - owned and
controlled corporation created under E.O. 272 s. of 2004, with principal office address at BDO
Plaza Bldg., 8737 Paseo de Roxas Makati City, represented herein by its President,
___________________________________, (hereinafter “SHFC”);
-and__________________________________________, a homeowners association duly
organized and existing under Philippine Laws with HLURB Certificate Registration No.
_____________ located at ___________________________________________, represented by
its President, ________________________, (hereinafter, “HOA”);
WITNESSETH:
WHEREAS, Republic Act (R.A.) 7279, otherwise known as the URBAN
DEVELOPMENT and HOUSING ACT of 1992 has mandated the National Home Mortgage
Finance Corporation (NHMFC) to be the administrator of the Community Mortgage Program
(CMP) of the national government and thus actually pays the landowner the acquisition cost of
the CMP project;
WHEREAS, pursuant to Executive Order No. 272, series of 2004, the SHFC was created
as a wholly-owned subsidiary of the NHMFC, to perform the latter’s powers and functions
relating to the administration and management of the CMP and was registered as a private
financing corporation with the Securities and Exchange Commission (SEC) on June 17, 2005;
WHEREAS, the CMP calls for the organization of the loan beneficiaries into a
HOMEOWNERS ASSOCIATION duly registered with the appropriate agencies.
WHEREAS, the HOA is availing of a CMP loan with SHFC.
NOW, THEREFORE, for and in consideration of the foregoing premises, the HOA
hereby binds itself to collect from its member-beneficiaries (MBs) their monthly payments and
pay the same to SHFC, under the following terms and conditions:
I.
COLLECTION
A. RIGHTS AND OBLIGATIONS OF THE HOA
1.
The HOA shall collect all amortization payments from its MBs and shall pay all
said amounts to SHFC on or before due date. The monthly payments shall consist
of principal, interest, insurance premiums and penalties (if any).
All payments made to SHFC must be accompanied by a Remittance Report and
Abstract of Collection reflecting the individual monthly payments made by all
MBs.
2.
If the monthly payment is due on a non-working day, such amortization shall be
paid on the last working day before the due date.
3.
The HOA shall receive prepayments of loan, as well as excess payments and
advance payments by the MBs on their accounts which should all be paid to
SHFC immediately.
4.
The HOA shall issue its own Official Receipts for all amounts received from its
MBs.
For monitoring and disclosure purposes, the Community Mortgage Receipt
(CMR), Remittance Report and Abstract of Collection corresponding to all
monthly payments by the HOA to SHFC shall be posted on a designated public
place located within the community and accessible for all the MBs.
5.
In case of error or mistake in the posting of payments of MBs due to the fault of
the HOA, the latter shall notify SHFC to correct the error or mistake.
6.
Before the release of the loan amount for the CMP project, the HOA President
and the person assigned with the task of collection shall be required to attend a
seminar conducted by SHFC on the pertinent rules and procedure regarding
collection of monthly payments.
7.
The HOA shall be responsible in reminding the MBs of their accounts and in the
application of their payments.
8.
Maintain records provided in Section V.
B. RIGHTS AND OBLIGATIONS OF SHFC
1.
2.
II.
It shall be the primary responsibility of the HOA to collect from the MBs and to
pay the amounts collected to SHFC. However, SHFC reserves the right to collect,
accept or refuse direct payments from the MBs, as may be warranted by
circumstances.
The SHFC shall issue the Community Mortgage Receipts (CMR) corresponding
to the payments made by the HOA.
COLLECTION OF PAYMENTS
The HOA shall collect the amount due from its MBs which shall be paid directly to
SHFC or its regional offices or to any designated branches of the Land Bank of the Philippines
nearest/convenient to the HOA/MBs.
Payment of amortizations by the HOA to SHFC shall not be delayed notwithstanding the
non-payment of association dues, taxes and all other fees by its MBs.
In case an MB is declared in default for failure to pay three (3) consecutive months, the
HOA should undertake to find a qualified substitute MB. The substitution shall only become
effective and enforceable upon approval by SHFC.
Delay or failure to pay the amortizations due shall be a ground for suspension or
cancellation of this agreement after notice to the HOA.
III.
PENALTIES
In the event the HOA fails to collect the amortization payments on due date, any amount
due to SHFC shall be subjected to penalty of 1/15 of 1% of the total unpaid amount due, per day
of delay, without need of demand.
IV.
COLLECTION INCENTIVE
The HOA shall be entitled to a collection incentive equivalent to one percent (1%) of the
actual gross/total regular collection of the amortization, immediately deductible before
payment to SHFC.
However, in computing the collection incentive, the following shall not be included: (a)
full payment; (b) lump sum payments using loan proceeds i.e, updating of arrearages of
previous CMP project and windfall payments obtained from expropriation proceedings.
V.
MAINTENANCE OF RECORDS
a.
b.
These records shall be accessible to all MBs.
c.
The HOA shall submit its Audited Financial Statement/Treasurer’s Report
whenever required by SHFC.
d.
VI.
The HOA shall accurately and faithfully maintain an accounting record of all
collections made such as but not limited to monthly amortization, association
dues, real property tax, etc. For proper monitoring, the HOA shall have a record
of all its MBs and the corresponding payments made by each one.
All records shall be properly turned over to the new set of officers of the HOA
when there is a change of leadership.
SUSPENSION AND CANCELLATION OF COLLECTION AGREEMENT
SHFC may either suspend or cancel this Collection Agreement after notice to the HOA
based on any of the following grounds:
a.
Inefficient collection by the HOA and / or continuous and gradual decline in
collections for a period of three (3) consecutive months as evidenced by majority
of the MBs becoming delinquent or as a result of internal conflict;
b.
Failure or unreasonable delay to remit collections to SHFC as determined by
SHFC;
c.
Unjustifiable refusal by HOA to accept valid tender of payments from the MBs
such as but not limited to non-payment of association dues, internal conflict, etc.;
d.
Inactive HOA which renders the HOA unable to operate;
e.
Failure of the HOA to comply with Section V(a) above;
f.
Other grounds analogous to the foregoing.
As a consequence, SHFC may accept direct payments from MBs until SHFC lifts the
suspension or reinstates the Collection Agreement.
In order to lift the suspension or reinstate the collection agreement, the HOA shall show
proof that any ground cited above are remedied or ceased to exist.
Notwithstanding the provisions for cancellation and suspension of the collection
agreement, the following circumstances shall also authorize SHFC to accept direct payments
from MBs:
a.
Internal conflicts between HOA officers and MBs;
b.
c.
Unjustifiable refusal by HOA to accept valid tender of payments from the MBs
such as but not limited to non-payment of association dues, internal conflict, etc.
d.
VII.
Pending case or dispute between HOA officers and MBs in judicial or quasijudicial bodies;
Inactive HOA which renders the HOA unable to operate;
OTHER PROVISIONS
a.
b.
SHFC has the right to send its representative to conduct audit/examination of all
the records of the HOA at any time during business hours of the day.
c.
The HOA shall adhere to provision of Corporate Circulars that the SHFC may
issue from time to time pertaining to the “Community Mortgage Program”.
d.
VIII.
Notwithstanding collection by the HOA Officers of the monthly amortization
from the MBs, only payments actually received by SHFC shall be credited to the
MB's account. SHFC shall not be liable for the non-payment by the HOA
Officers of the monthly amortizations collected from its MBs.
If any or more provisions contained in this Collection Agreement shall be invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein shall not in any way be affected or
impaired.
LEGAL ACTION
a. Cost for litigation. In the event that the SHFC or its assignee/transferee has to initiate any
action or proceeding, the latter shall be entitled to collect litigation costs and expenses,
including but not limited to Attorney’s fees equivalent to at least twenty five (25%) of the
total amount due.
b. Venue for actions. Any Court action arising from this note shall be filed exclusively in
the appropriate courts in Makati City.
IX.
EFFECTIVITY
This agreement shall immediately take effect upon signing and continue unless
suspended or terminated.
IN WITNESS WHEREOF, we have hereunto set our hands this _____ day of
_________________ 20____, at ________________________.
SOCIAL HOUSING FINANCE
CORPORATION
By:
____________________________
President
Government ID No. ____________
______________________________
HOA
By:
_____________________________
President
Government ID No. _____________
SIGNED IN THE PRESENCE OF:
_________________________
________________________
ACKNOWLEDGMENT
Republic of the Philippines )
) S.S.
BEFORE ME, a Notary Public for and in the above jurisdiction this day of
________________ personally appeared:
Name
Government Valid ID
Place and Date of Issue Expiration Date
Known to me to be the same persons who executed the foregoing instrument, consisting of five
(5) pages, including this page wherein this acknowledgement is written, signed by parties and
their instrumental witnesses and sealed with my notarial seal. This agreement refers to as
COLLECTION AGREEMENT and acknowledged to me that the same are their own free
voluntary acts and deeds as well as of the Corporation and HOA herein represented.
WITNESS MY HAND AND SEAL on the date, year and place first above written.
Doc. No.: ____;
Page No.: ____;
Book No.: ____;
Series of 20___.
