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Promissory Note
NEA promissory note
Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: SHORT-TERM CREDIT FACILITY AGREEMENT
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources and
Financial Services
KNOW ALL MEN BY THESE PRESENTS:
This
AGREEMENT,
made
and
entered
into
this
_____day
___________________ 20___ at ____________________ by and between:
of
NATIONAL ELECTRIFICATION ADMINISTRATION a government
corporation organized and existing under Presidential Decree No. 269, as amended,
with office address at #57 NIA Road, Government Center, Diliman Quezon City,
hereinafter referred to as “NEA” represented herein by its Deputy Administrator,
__MARIANO T. CUENCO__;
- and -
SONIA B. SAN DIEGO
Director
Finance Services Department
_________________________ ELECTRIC COOPERATIVE, INC. an
electric cooperative organized and existing under the laws of the Philippines with office
address at
____________________________________
represented herein by
_____________________ _ hereinafter referred to as “BORROWER”.
W I T N E S S E T H: T H A T WHEREAS, the BORROWER has applied for a loan under
NEA’s Short Term
Credit Facility (STCF) to finance its monthly shortfall on the settlement of its power
accounts with the National Power Corporation (NPC) and National Transmission
Corporation (TRANSCO);
WHEREAS, the NEA is willing to extend said loan to the BORROWER which
meets the following criteria;
_____________________
General Manager
___________________
President
1) temporarily experiencing problem in cash flow;
2) must have a debt service ratio of 1.2;
3) must show substantial compliance on the implementation of its 5-year plan.
NOW THEREFORE, for and in consideration, of the mutual covenants herein
contained, NEA and BORROWER hereby agree as follows:
SECTION I
TERMS OF THE LOAN
1.01 Loan – The NEA agrees to lend to the BORROWER an amount not
exceeding pesos: _______________________________________________
________________________________________(P________________)
payment of the power account arrearages with the National Power Corporation (NPC)
and TRANSCO. The parties further agree that the proceeds of the loan shall be
transferred by NEA’s depository bank to the corresponding depository/account of
NPC/TRANSCO. NPC/TRANSCO shall issue a notice of receipt of payment and NEA shall
advise them accordingly of the schedule of payment of the availment.
1.02 The BORROWER can avail of the credit facility in part, its aggregate, the
principal amount or full amount.
1.03 Service Charge – NEA shall apply service charge on the processing of
Short-term Credit Facility (STCF) of ECs, as follows:
-
The service fee shall be equivalent to ½ of 1% or 0.50% of the approved
amount of the credit facility
One-time payment or a maximum of two (2) payments within the six month
facility
1.04 Interest – The BORROWER shall pay to NEA interest at the rate of 1%
per month based on the outstanding balance of the principal and any due and unpaid
interest.
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources and
Financial Services
SONIA B. SAN DIEGO
Director
Finance Services Department
1.05 Repayment –
A.
The BORROWER may avail of the STCF for a period not exceeding six
(6) months. It shall repay NEA, the principal and interest within 30
days from release thereof;
B.
NEA, however, may require accelerated repayment if the financial
condition of the BORROWER warrants;
C.
Should there be default in the payment of any loan amortization, the
amount in arrears shall bear interest at the rate of 1.5% per month;
D.
The BORROWER has the option, to prepay the availment/borrowing
in part or in full together with the accrued interest thereon up to the
date of prepayment.
1.06 Application and Place of Payment - All payments by the BORROWER
shall be made thru an inter-bank fund transfer/electronic transfer of funds to the
account of NEA-STCF Fund without further demand from NEA.
1.07 Amortization payment shall first be applied to the STCF over other
existing loans.
1.08 Other conditions – The Borrower must file a rate adjustment with the
ERC, in case of insufficient systems rate.
1.09 Effectivity Date –
SECTION II
REQUIREMENTS PRIOR TO DISBURSEMENT
___________________
President
2.01 The BORROWER shall before the implementation of the STCF, submit a
Board Resolution covering the same a, 12 months projected Income Statement and
Cash Flow including Schedules and assumptions thereto.
SECTION III
DEFAULTS, REMEDIES, AND SANCTIONS
3.01 The occurrence of any of the following events shall constitute default by
the BORROWER:
a. failure to perform any term, covenant, promise, condition or agreement as
set forth in the contract;
b. breach of any warranty or gross misrepresentation;
c. violation of any policy, rules or regulations issued by NEA.
_____________________
General Manager
3.02. In the event of default, the NEA may, in addition to the rights, privileges,
powers and remedies granted to it under Presidential Decree No. 269 as amended and
other pertinent laws, exercise any or all of the following remedies:
a. Suspend and/or stop all types of assistance (financial, technical &
institutional);
b. Declare all unpaid obligations to be immediately due and payable;
c. Assign or designate an Acting General Manager and/or Project Supervisor;
d. Take over the construction, operation, management and control of the
SYSTEM;
e. Foreclose any mortgage or deed of trust or other security held by the NEA
on the properties of such borrower.
2
SECTION IV
MISCELLANEOUS
4.01 This contract maybe revised or amended by mutual consent of the parties.
4.02 The Projected Income or Cash Flow Statements submitted by the BORROWER
to NEA along with the commitments/assumptions used in such statements shall form an integral
part of this Contract.
4.03 The BORROWER shall not assign or transfer to a third party any of the rights
arising from this Agreement.
4.04 Should any part of this Contract be declared invalid, such declaration shall not
affect the validity and enforceability of the other provisions.
IN WITNESS WHEREOF, the parties have affixed their signatures on the date and
place first above-written.
NATIONAL ELECTRIFICATION
ADMINISTRATION
ELECTRIC COOPERATIVE, INC.
By:
By:
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources and
Financial Services
_____________________
President
SIGNED IN THE PRESENCE OF:
SONIA B. SAN DIEGO
Director
Finance Services Department
_______________________
General Manager
3
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources and
Financial Services
ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
__________________________)
BEFORE ME, a Notary Public for and in ___________________________,
Philippines, on this ______ day of ______________________, 20____ personally
appeared:
Name
CTC No.
Date/Place Issued
SONIA B. SAN DIEGO
Director
Finance Services Department
MARIANO T. CUENCO
known to me and to me known to be the same persons who executed the foregoing
Short Term Credit Facility Agreement and who acknowledged to me that the same is
their true and voluntary act and deed and the true and voluntary act and deed of the
Offices they respectively represent.
I CERTIFY that this Contract consists of
4
pages including this page
whereupon this Acknowledgment is written each page duly signed by the PARTIES and
their instrumental witnesses at the left-hand margin except page 3 which is signed
at the foot thereof.
WITNESS MY HAND AND SEAL on the date and at the place first above-
________________________
Notary Public
Until December 31, 20___
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of _____
_____________________
General Manager
___________________
President
written.
4
PROMISSORY NOTE
(STILL TO BE PAID BY EC)
STCF
P______________________
A
On or before _________________________________, for value received I/we jointly and
severally, promise to pay the NATIONAL ELECTRIFICATION ADMINISTRATION, or order at
its Office at Quezon City, Philippines, the sum of __________________________________
_________________________________________(P_________________) Philippines
Currency, representing principal plus interest at the rate of _1%_ per month. All unpaid
amortizations shall earn penalty rate of _1.5%_ per month.
In case of non-payment of the amount of this note or any portion of it on demand, when
due, or any other amount or amounts due on account of this note, the entire obligation shall
become due and demandable, and if for the enforcement of the payment thereof, the NATIONAL
ELECTRIFICATION ADMINISTRATION is constrained to entrust the case to its attorney’s, I/we
jointly/severally, bind myself/ourselves to pay for attorneys, as provided for in the mortgage
contract, in additional to the legal fees and other incidental expenses. In the event of foreclosure
of the mortgage securing this note, I/we further bind myself/ourselves jointly and severally, to
pay, the deficiency if any.
ELECTRIC COOPERATIVE, INC.
By:
_______________________
President
IN THE PRESENCE OF:
SONIA B. SAN DIEGO
Director
Finance Services Department
_______________________
General Manager
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