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The Personal Loan Promissory Note is a fundamental document in Philippine lending practices, used to formalize personal loan arrangements between lenders and borrowers. It serves as both a proof of debt and a legally enforceable contract under Philippine law. This document is particularly important in the context of the Philippine financial system, where personal lending occurs through various channels including banks, private lenders, and financial institutions. The note typically contains crucial information such as the loan amount, interest rate (compliant with Philippine usury laws), payment terms, and consequences of default. It's designed to protect both lender and borrower interests while ensuring compliance with local regulations including the Truth in Lending Act and Consumer Protection laws. The document can be used for both secured and unsecured loans, with provisions for including collateral details when applicable.

1. Parties: Identification of the Lender and Borrower with complete names, addresses, and contact information

2. Background: Brief context of the loan agreement between the parties

3. Definitions: Key terms used in the document including 'Principal Amount', 'Interest Rate', 'Maturity Date', etc.

4. Promise to Pay: The core promise stating the principal amount, interest rate, and payment terms

5. Payment Terms: Detailed description of payment schedule, method of payment, and due dates

6. Interest Rate: Specification of interest rate, calculation method, and compliance with Philippine usury laws

7. Default Provisions: Consequences of missing payments and definition of events of default

8. Remedies: Rights and remedies available to the lender in case of default

9. Representations and Warranties: Borrower's confirmations regarding their capacity and authority to enter into the agreement

10. Governing Law: Specification that Philippine law governs the agreement

11. Execution: Signature blocks for all parties and witnesses