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Notice of Approval

SHFC notice of approval for loan documentation

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_______________________
President
____________________, HOA Inc.
_____________________________
_____________________________

Subject: NOTICE OF APPROVAL
(Usufruct & Accommodation Mortgage)
[Lot Acquisition /Site Development/House Construction]

Dear ________________:
Please be informed that your loan application for Lot Acquisition/Site Development and/or
House Construction amounting to ____________________________________________PESOS
(PhP _________________) was approved by Social Housing Finance Corporation (SHFC) on
___________.
In view thereof, you are hereby required to submit the following documents prior to the release
of the loan proceeds:
1) Surety Bond issued in favor of HOA by a reputable insurance company accredited by the
Insurance Commission, in an amount equivalent to fifteen percent (15%) of the Contract
Price including the original official receipt evidencing payment of bond premium and
assigned in favor of SHFC;
2) Deed of Assignment of loan proceeds in favor of the developer/contractor, if applicable;
3) Loan Agreement;
4) Promissory Note for the 15% Mobilization Fund (thereafter, staggered releases of the
loan shall be covered by a promissory note);
5) Lease Agreement between the association and the member-beneficiaries (MBs);
6) Deed of Assignment of Lease Agreement;
7) Collection Agreement;
8) Usufruct Agreement between the association and SHFC;
9) Three months cash deposit and one-year pre-payment of Mortgage Redemption Insurance
(MRI) for MBs [Fire Insurance for the housing units shall be required after issuance of
certificate of completion and occupancy (COCA) of the building by the association];
Please submit the above documents within thirty (30) days from receipt.
In addition, be informed that SHFC shall retain an amount equivalent to ten percent (10%) of the
contract price which shall answer for repairs of defective works, if any, to be released within six
(6) months from completion of the project.

Very truly yours,

_______________________
President
Received by:
______________________
Signature over printed name
Date: _________________
 
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