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Mortgage

NEA mortgage

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MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services

FIRST MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:
This document made and executed by and between:
__
ELECTRIC COOPERATIVE, INC., a
cooperative organized and operating pursuant to the provisions of Presidential Decree
No. 269, as amended, with principal office at ___ ________________
_____,
represented by its President ____
_____, Filipino, of legal age,
hereinafter referred to as MORTGAGOR;

_____________________
General Manager

______________________
President

SONIA B. SAN DIEGO
Director
Finance Services Department

- and The NATIONAL ELECTRIFICATION ADMINISTRATION, a government
corporation created pursuant to the provisions of Presidential Decree No. 269, as
amended, with principal office at #57 NEA Building, NIA Road, Government Center,
Diliman, Quezon City, represented herein by ____MARIANO T. CUENCO_____,
Filipino, of legal age, hereinafter referred to as MORTGAGEE.
W I T N ES S E T H:
WHEREAS, the MORTGAGOR has been granted a loan of __________________
____________________________________________(P____________) by
the MORTGAGEE, as evidenced by a contract of loan dated ____________ ____;
WHEREAS, the MORTGAGOR has agreed with the MORTGAGEE that, to secure
the repayment of the above loan, the MORTGAGOR shall constitute in favor of the
MORTGAGEE a first mortgage on MORTGAGOR’S real and personal properties described
in the attached schedule, Annex “A”, including all the machinery, materials and
equipment to be acquired out of the NEA loan to be used for the construction of facilities
for the generation, transmission and distribution of electric power of the MORTGAGOR;
NOW, THEREFORE, for and in consideration of the foregoing premises and as
security for the payment of the said loan and other obligations arising hereunder, the
MORTGAGOR does hereby transfer and convey by way of first mortgage unto the
MORTGAGEE, its successors and assigns, the real and/or personal properties described
in Annex “A” hereof, together with all the buildings and improvements now existing or
which may hereafter be constructed on the mortgaged properties, all easements,
agricultural or land indemnities, aids or subsidies and all other rights or benefits annexed
to or inherent therein, now existing or which may hereafter exist, of which the
MORTGAGOR is the absolute owner, and also other assets acquired with the proceeds of
such loan, of which the MORTGAGOR declares that it is the absolute owner, free from all
liens and encumbrances. In case the MORTGAGOR executes a subsequent promissory
note or notes either as a renewal of the former note or as an extension thereof or as a
new loan or is given any other kind of accommodation(s) such as overdrafts, letters of
credit, etc., the mortgage shall also stand as security for the payment of said promissory
note or accommodations without the necessity of executing a new contract and this
mortgage shall have the same force and effect as if the said promissory note or
accommodations were existing on the date hereof. This mortgage shall also stand as
security for said obligations and any and all other obligations of the MORTGAGOR to the
MORTGAGEE, of whatever kind and nature, whether such obligations have been
contracted before, during or after the constitution of this mortgage. However, if the
MORTGAGOR shall pay to the MORTGAGEE, its successors or assigns the obligation
secured by this mortgage, together with interests, cost and other expenses, on or before
the date they are due, and shall keep and perform all the covenants and agreements
herein contained for the MORTGAGOR to keep and perform, then this mortgage shall be
null and void; otherwise, it shall remain in full force and effect.

_____________________
General Manager

______________________
President

SONIA B. SAN DIEGO
Director
Finance Services Department

MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services

This mortgage is constituted under the following conditions:
1. That in case of default by the MORTGAGOR in the payment of its obligations with
the MORTGAGEE, such default automatically makes the indebtedness due and
demandable and thereby renders the real estate and chattel mortgage susceptible to
foreclosure either judicially or extrajudicially; that in the event of foreclosure, the
MORTGAGEE, after instituting the necessary foreclosure proceedings, shall apply the
proceeds of the sale of the mortgaged properties realized as a consequence thereof to
the mortgage lien; Provided, that in case of any deficiency, the MORTGAGEE may bring
judicial action for the recovery of the unpaid credits.
2. That the MORTGAGOR shall pay all the expenses in connection with this
transaction and the fees for the registration of this document, the cancellation of
mortgage, and any other instrument related thereto; shall pay on time the taxes and
assessments on the mortgaged properties, reporting to the MORTGAGEE the fact of
such payment on the dates on which they were effected; shall insure all the buildings,
improvements and personal property during the life of this mortgage against fire and
typhoon for an amount and with such company acceptable to the MORTGAGEE,
indorsing to the latter the corresponding policies and all such policies shall be
considered assigned by these presents to the MORTGAGEE, which shall as such
assignees of the MORTGAGOR, in case the risk insured against occur, have authority to
settle or liquidate all claims appertaining to said policy and to apply the proceeds
thereof to the account of the MORTGAGOR and/or release the proceeds to the
MORTGAGOR for reconstruction of the damaged property, and the MORTGAGOR shall
be credited only with the cash that the MORTGAGEE may receive for said property; shall
keep the mortgaged properties in good condition, making repairs, filling the land, or
construct protecting walls that may reasonably be necessary; and hereby authorizes the
MORTGAGEE to inspect the mortgaged properties to ascertain the condition thereof and
its actual value in the market; and if the MORTGAGOR shall fail to comply with any of
these conditions, the MORTGAGEE may, at its discretion, declare this mortgage due,
payable and defaulted, or may advance the expenses, registration fees, taxes,
assessments, insurance premiums, the cost of repairs, filling of the land, if required by
competent authorities, or protecting walls, all of which shall be promptly reimbursed by
the MORTGAGOR with the rate of interest at one (1%) per cent per month on such
advances until they are fully paid, the payment of these advances and interest thereon
being likewise guaranteed by this mortgage.
3. The MORTGAGOR shall not sell, dispose of, mortgage, nor in any manner
encumber the mortgaged properties, without the prior written consent of the
MORTGAGEE. If in spite of this stipulation the properties are sold, the vendee shall be
deemed to have assumed the mortgage in the terms and conditions under which it is
constituted, it being understood that the assumption by the vendee shall not release the
vendor of his obligations to the MORTGAGEE; on the contrary, both the vendor and the
vendee shall be jointly and severally liable for said mortgage obligations. In case a
second mortgage or other encumbrance is constituted, the second MORTGAGEE or
junior encumbrancer shall recognize the existing mortgage in favor of the MORTGAGEE
as first lien and shall further agree, promise and bind himself to recognize and consider
the extension of any term of said mortgage by the MORTGAGEE in favor of the
MORTGAGOR or a new mortgage covering the same properties to be executed by said
MORTGAGOR in favor of the MORTGAGEE as first and superior encumbrance.
4. Should at any time the MORTGAGOR shall fail or refuse to pay the obligations
herein secured, or any of the amortizations of such indebtedness when due, or to
comply with any of the conditions and stipulations herein agreed and those in the
contract of loan and other related documents or shall, during the time this mortgage is
in force, institute insolvency proceedings or be involuntarily declared insolvent, or shall
use the proceeds of the loan accommodation granted by the MORTGAGEE for purposes
other than those specified herein, then all the obligations of the MORTGAGOR secured
by this mortgage and all the amortizations thereof shall immediately become due and
demandable and defaulted, and the MORTGAGEE may immediately foreclose this
mortgage judicially in accordance with the Rules of Court or extra-judicially in
accordance with Acts Nos. 3135 or 1508, as amended.

MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
SONIA B. SAN DIEGO
Director
Finance Services Department
______________________
President
_____________________
General Manager

5. For the purpose of extra-judicial foreclosure, the MORTGAGOR hereby irrevocably
appoints the MORTGAGEE as its Attorney-in-Fact with full power and authority to sell
the properties mortgaged under Acts Nos. 3135 and 1508, as amended, to sign all
documents and perform any act requisite and necessary to accomplish said purpose
and to appoint its substitute attorneys-in-fact with the same powers as stated. In case
of judicial foreclosure, the MORTGAGOR hereby consents to the appointment of the
MORTGAGEE or any of its employees as receiver, without any bond, to take charge of
the mortgaged properties at once and to hold possession of the same and the rents,
benefits and profits derived from the mortgaged properties before the sale, less the
costs and expenses of the receivership. The MORTGAGOR agrees further that in all
cases of foreclosure attorney’s fees hereby fixed at ten (10%) per cent of the total
indebtedness then unpaid, which in no case shall be less than P10,000.00, exclusive of
all costs and fees allowed by law, and the expenses of collection shall be the obligation
of the MORTGAGOR and shall, with priority, be paid to the MORTGAGEE out of any
sums realized as rents and profits derived from the mortgaged properties or from the
proceeds realized from the sale of said properties and this mortgage shall likewise
stand as security therefor.
6. Effective upon the breach of any condition of this mortgage and in addition to the
remedies herein stipulated, the MORTGAGEE is hereby likewise appointed attorney-infact of the MORTGAGOR with full power and authority to take actual possession of the
mortgaged properties, to lease any of the mortgaged properties, to collect rents, to
eject tenants, to execute bills of sale, lease or agreement that may be deemed
convenient for the proper administration of the mortgaged properties. Any amount
received from the sale, disposal or administration above mentioned may be applied by
the MORTGAGEE to the payment of repairs, improvements, taxes, and assessments
and other incidental expenses and obligations, and to the payment of the original
indebtedness and interest thereon. The power herein granted shall not be revoked
during the life of this mortgage, and all acts that may be executed by the MORTGAGEE
by virtue of said power are hereby ratified.
7. Should at any time during the existence of this mortgage and/or as long as the
MORTGAGOR is indebted to the MORTGAGEE, the mortgaged properties or any portion
thereof shall be lost, damaged or shall suffer depreciation in value due to any cause
whatsoever other than ordinary wear and tear, the MORTGAGOR and his successors
shall give additional security acceptable to the MORTGAGEE, so as to bring the total
value of the securities held by the MORTGAGOR in an amount not less than the value
of the securities as appraised by the MORTGAGEE at the time when the original
obligation and/or the subsequent additional loans were given; but should the
MORTGAGOR not have sufficient additional security, this will not constitute an event of
default.
8. Should the properties herein mortgaged be expropriated by the Government of
the Philippines, any department, branch, subdivision or instrumentality thereof, or by
any province, municipality of town or by any person, association or body corporate
duly authorized by law to acquire property by eminent domain, all moneys paid or
which may become payable on account thereof, or in consideration of the
expropriation of the property and/or any piece or pieces of real property or personal
property given in exchange for the property so expropriated shall be delivered to the
MORTGAGEE which is hereby expressly authorized to collect said moneys or receive
such property from whomsoever they may be properly due and payable, and credit the
MORTGAGOR therewith effective on the day that the MORTGAGEE receives it, the
MORTGAGOR agreeing, should the funds come into its possession to deliver the same
to the MORTGAGEE immediately, and the MORTGAGOR further covenanting not to
agree upon any purchase price or exchange in consideration of the property so
expropriated without the prior written consent of the MORTGAGEE.
9. The MORTGAGOR shall not make any significant alteration upon or demolish any
building or buildings herein mortgaged without the prior written consent of the
MORTGAGEE.

10. All correspondence relative to this mortgage, including demand letters, summons,
subpoenas, or notifications of any judicial or extra-judicial action shall be sent to the
MORTGAGOR at the address above or at the address that may hereafter be given in writing by
the MORTGAGOR to the MORTGAGEE.
11. The MORTGAGOR shall execute such other documents as may be required of it by the
MORTGAGEE.
12. If this mortgage cannot be recorded in the corresponding Registry of Deeds, the
obligations secured shall immediately become due, payable and defaulted.
13. In case of foreclosure of this mortgage under Act No. 3135, as amended, the auction
sale shall take place in the city or capital of the province where the mortgaged properties are
situated.
14. It is hereby agreed that in case of foreclosure of the mortgage, whether judicially or
extra-judicially, the sheriff may, at the option of the MORTGAGEE, sell the chattels individually
or as a whole lot.
15. That the MORTGAGOR hereby binds itself to comply with and be bound by each and
every term and condition enumerated above.
IN WITNESS WHEREOF, the parties have hereunto caused these presents to be signed at
________________, Philippines, on this ____ day of _____________, 20____.

NATIONAL ELECTRIFICATION
ADMINISTRATION

By:

ELECTRIC COOPERATIVE, INC.
By:

MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services

__

President

__

SIGNED IN THE PRESENCE OF:

SONIA B. SAN DIEGO
Director
Finance Services Department

_

General Manager

_

ANNEX “A”

_____________________
General Manager

______________________
President

SONIA B. SAN DIEGO
Director
Finance Services Department

MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services

PROPERTIES MORTGAGED
All rights, title and interest of the Mortgagor in and to the electric generating
plant, transmission and distribution lines and facilities and those proposed to be
constructed or acquired by the Mortgagor with the proceeds of the loans and in and to
all extensions and improvements thereof and additions thereto, including all
substations, service and connecting lines, poles, posts, cross arms, wires, cables,
conduits, mains, pipes, tubes, transformers, insulators, meters, electrical connections,
lamps, fuses, junction boxes, fixtures, appliances, machinery, tools, supplies, switching
and other equipment, and any and all other property of every nature and description,
used or acquired for use by the Mortgagor in connection therewith; and also all right,
title and interest of the Mortgagor in and to any and all other electric transmission and
distribution lines systems and electric generating plants at any time or times hereafter
constructed or acquired by the Mortgagor, and all extensions and improvements
thereof and additions thereto, together with any and all other property of every nature
and description used or acquired for use by the Mortgagor in connection therewith,
wherever located in the above-mentioned places, including, without limitation, all
property of the classes herein above listed.
All rights, title and interest of the Mortgagor in, to and under any kind of grants,
privileges, right-of-way and easements now owned, held, leased, enjoyed or exercised
by the Mortgagor for the purpose of, and in connection with, the construction or
operation by or on behalf of the Mortgagor of electric transmission or distribution lines,
or systems, whether underground or overhead or otherwise, or of any electric
generating plant, wherever located in the above-mentioned places.
All rights, title and interest of the Mortgagor in, to and under any and all licenses,
franchises, ordinances, privileges and permits heretofore granted, issued or executed,
or which may hereafter be granted, issued or executed, to it or to its assignors by the
Republic of the Philippines, or by any province, municipality or other political
subdivision thereof, or by any agency, board, commission or department of any of the
foregoing, authorizing the construction, acquisition, or operation of electric
transmission or distribution lines, or systems, or any electric generating plant or plants
in the above-mentioned places, insofar as the same may by law be assigned, granted,
bargained, sold, conveyed, transferred, mortgaged, or pledged.
All rights, title and interest of the Mortgagor in, to and under any and all contracts
heretofore or hereafter executed by and between the Mortgagor and any person, firm,
or corporation providing for the purchase or exchange of electric energy by the
Mortgagor.
Also, all rights, title and interest of the Mortgagor in and to all other property, real
or personal, tangible or intangible, of every kind, nature and description, and
wheresoever situated, now owned or hereafter acquired by the Mortgagor, it being the
intention hereof that all such property acquired or held by the Mortgagor after the date
hereof shall be as fully embraced with the subjected to the lien hereof as if the same
were now owned by the Mortgagor and were specifically described herein to the extent
only however, that the subjection of such property to the lien hereof shall not be
contrary to law.
Together with all rents, income, revenues, profits and benefits at any time
derived, received or had from any and all of the above-described property of the
Mortgagor.
Assets to be acquired out of the proceeds of the loans, the description of which
will be furnished later and which assets are also included in this mortgage.
Machinery, materials and equipment.
Except that nothing contained herein shall restrict the utilization by the
cooperative of revenues, income, funds on deposit or invested or inventory in meeting
expenses or requirements of operation.

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
__________________________) S.S.
BEFORE ME, Notary Public for and in _____________________, Philippines, on this ____ day
of _________________, 20____ appeared _
___ with Residence Certificate
No. A/B ______________ issued on ____-____________, at ________________________, and
___MARIANO T. CUENCO___ with Residence Certificate No. A/B __
__ __
__ issued on
_
_, at _
__ representing the _________________________
ELECTRIC COOPERATIVE, INC.
and NATIONAL ELECTRIFICATION ADMINISTRATION,
respectively, known to me and to me known to be the same persons who executed the foregoing
First Mortgage 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 five (_5_) pages, including this one, each page duly
signed by the parties and their instrumental witnesses at the left hand margin except page four
(_4_) which is signed at the lower portion hereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and my official seal on the
date and at the place first above written.
______________________________
Notary Public
Until December 31, 20____

Doc. No. ________;
Page No. ________;
Book No. ________;
Series of 20______

OATH
We severally swear that the foregoing mortgage is made for the purpose of securing the
obligation specified in the condition thereof, and for no other purpose; and that the same is a just
and valid obligation, and one not entered into for the purpose of fraud.
NATIONAL ELECTIFICATION
ADMINISTRATION

_
_ _
ELECTRIC COOPERATIVE, INC.

BY:

BY:

__MARIANO T. CUENCO___
MORTGAGEE

_

_

MORTGAGOR

__

CERTIFICATE OF OATH
At _______________________________, this ____ day of _______________, 20___,
personally appeared before me ____
___ in his capacity as President and
___MARIANO T. CUENCO___ in his capacity as Deputy Administrator, the parties who signed the
foregoing affidavit and made oath to the truth thereof, Mr.
and
__MARIANO T. CUENCO__ exhibited to me their Residence Certificate No. A/B ____________
issued at _________________________, on _________________, and Residence Certificate No.
A/B __
___ issued at __ _______
____, on ___
, respectively.
____________________________
Notary Public
Until December 31, 20______
Doc. No. ______;
Page No. ______;
Book No. ______;
Series of 20____
 
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