PART I. COMMON PROVISIONS
This Part I contains terms and conditions that are applicable to all types of Loans.
INTERPRETATION AND DEFINITIONS
- “Affiliate” means, with respect to the Bank, a person, corporation, or entity directly or indirectly controlling, controlled by, or under common control with, the Bank. For the purpose of this definition, the word “control” means either (a) the ownership, directly or indirectly, of more than fifty percent (50%) of the voting stock of the relevant Bank or of the person, corporation, or entity, or (b) the power or ability to appoint or remove the majority of the members of the board of directors of the Bank or such person, corporation, or entity; and “controlling” and “controlled” shall be construed accordingly.
- “Applicable Law” means the Constitution, statutes, laws, rules, regulations, ordinances, codes, policies, judgments, orders, decrees, permits, or any published directives, guidelines, requirements, or other governmental restrictions which have the force of law, or any determination or interpretation of any of the foregoing by any judicial authority whether in effect as of the date of application or as any date thereafter.
- “Bank” means Tonik Digital Bank, Inc.
- “Bank Savings Account” means the Tonik Savings Account of the Borrower with the Bank.
- “Banking day” means a day, other than a Saturday, Sunday or public holiday, in which banks are generally open in Manila and Pasig City.
- “Borrower” means the person named as borrower or co-borrower in the Loan application and the other Loan Documents.
- “Loan” refers to a loan applied for, and, if approved, disbursed by the Bank. The types of loans covered by these Terms and Conditions include BNPL Loan, Loan with Mortgage, Loan with Linked Card and Unsecured Cash Loan.
- “BNPL Loan” or “Shop Installment Loan” means a buy now, pay later loan or loan disbursed at a merchant or physical/online retail partner of the Bank either to the customer or directly to the merchant or retailer.
- “Loan Secured with Mortgage” means a loan secured by a mortgage.
- “Loan Linked to a Salary Card” means a loan linked to a salary deposit account.
- “Unsecured Cash Loan” means a loan which is not secured by any mortgage, security, or other collateral, save to the extent set out in this Part I.
- “Loan Documents” collectively refers to these Terms and Conditions, Disclosure Statement, Amortization Schedule, Promissory Note, Direct Debit Form and all other documents executed in relation to the Loan subject of these Terms and Conditions.
- “Monthly Installment” means the principal amount, accrued interest, premiums, fees, penalties, and charges to be paid by the Borrower under any, some, or all of the Loan Documents on each Payment Date.
- “Non-Performing Loan” refers to secured or unsecured loans, including restructured loans, whose principal, and other amounts payable under the Loan, have remained unpaid for at least one (1) days after due date, or any of the events of default under these Terms and Conditions or restructuring agreement has occurred.
- “Payment Date” means the due date for a principal repayment, interest payment, or other payment, as indicated in the Disclosure Schedule and the other Loan Documents.
- “Personal Data” has the meaning given to it in the Bank’s Privacy Statement, which is hereby incorporated herein and made an integral part hereof.
- In the event of any conflict or inconsistency between these Terms & Conditions and the other Loan Documents, the provisions set forth in these Terms & Conditions shall prevail, unless otherwise expressly provided. Part II stipulates terms and conditions that apply specifically to a particular type of Loan --- in the event of conflict between the provisions of Part I and the provisions of Part II, the provisions of Part II shall prevail.
- In these Terms and Conditions, unless the context states otherwise:
- words in the singular shall include the plural and vice versa;
- references to one gender include other genders;
- if a period of time is specified as from a given day, or from the day of an act or event, it shall be calculated exclusive of that day;
- references to writing shall include any modes of reproducing words in any legible form and shall include email except where expressly stated otherwise;
- a reference to “includes” or “including” or “such as” shall mean includes without limitation or including without limitation or such as without limitation;
- headings in these Terms and Conditions are for convenience only and shall not affect its interpretation.
ELIGIBILITY AND APPLICATION
- To apply and qualify for a Loan, each Borrower must be a Filipino citizen, currently residing in the Philippines must be employed, have a valid TIN, must have a Bank Savings Account, must have the legal capacity to enter into binding contracts, and, at the time of application, aged between 23 to 58. Part II may specify additional requirements and/or a different age range --- each Borrower must comply with such additional requirements and qualifications in order to avail of the particular Loan specified in Part II.
- To avail of the Loan, each Borrower must provide true and accurate information, requirements, and additional documentation if needed, for the processing of the application and which will be the basis of approval of the loan. The Bank has the right to approve, cancel at any stage prior to loan disbursement, or reject/decline the loan application based on the Bank’s Credit guidelines, and is not obligated to disclose any underlying reasons for cancelling, rejecting, or declining the loan application. Each Borrower’s eligibility shall be subject to the Bank’s evaluation and the Bank’s sole discretion.
- At its sole discretion, the Bank may cancel any unutilized approved Loan at any time.
REPRESENTATIONS AND WARRANTIES
- Each Borrower represents and warrants that:
- he/she has full and absolute legal right, power, and authority to execute, deliver, and perform the obligations contained in the Loan Documents;
- each of the Loan Documents constitutes legal, valid and binding obligations of the Borrower(s), and is enforceable against the Borrower(s) in accordance with the terms of the Loan Documents;
- the Loan Documents, all representations and warranties contained in the Loan Documents, and the performance by the Borrower(s) of the terms and conditions in the Loan Documents do not contravene nor violate any agreement, contract, law, rule, regulation, or order applicable to or binding on the Borrower(s) and/or his/her/their revenues and/or properties;
- he/she/they does/do not have any criminal record, and is freely and voluntarily entering into the Loan Documents or Loan agreement.
- each Borrower’s existing loans and obligations with other lenders (including the Bank, other banks, financing companies and credit cards companies) are updated and not delinquent or past due.
- all documents, communication, and information provided by, or on behalf of, each Borrower are complete, accurate, and true.
- The representations and warranties made by each Borrower as of the date of execution of each Loan Document and are deemed repeated throughout the duration of the Loan.
OBLIGATIONS AND COVENANTS
- Each Borrower undertakes to properly and promptly inform the Bank’s Customer Care department via call or email regarding any updates in the Borrower’s/Borrowers’ necessary information such as place of residence and any changes in the contact information provided to the Bank. In case of any discrepancy in a Borrower’s name as stated in any of the Loan Documents, the Bank will provide Loan Documents with the corrected name. Any changes to the employment status of a Borrower should be provided to the Bank within two (2) business days.
- Each Borrower agrees to abide by and be bound by these Terms and Conditions and those stated in the Loan Documents.
- Each Borrower agrees to pay the Bank any outstanding amount and fees and finance charges, such as but not limited to the interest rate, or any other unpaid amount, as stated in the Loan Documents.
- Each Borrower agrees to promptly provide and submit all required documents and information from time to time throughout the duration of the loan.
- Each Borrower agrees to use the Loan solely for personal use and the declared purpose as stated in the application and not for any unlawful purposes or activities.
- Each Borrower agrees that the authorization for automatic direct debit from the Bank Savings Account shall remain effective notwithstanding the occurrence of any unfortunate event such as the death or permanent disability of the Borrower until notice of such death is received by the Bank.
- Each Borrower agrees that these Terms and Conditions and Loan Documents shall be binding upon and inure to the benefit of the Bank and the Borrower(s), and their respective estate, heirs, personal representatives, assigns and/or successors-in-title and any other person for the time being deriving title under them.
- In case the Loan is granted to two or more Borrowers (including, without limitation, Borrowers who are married to each other), the Borrower shall be jointly and severally liable to the Bank for all the obligations of each Borrower under the Loan Documents. Each Borrower hereby irrevocably authorizes each of the other Borrower(s) to receive any and all notices and communications on the former’s behalf; and consequently, service of notice or communication to one Borrower shall be deemed service of such notice or communication to the other Borrower(s). An Event of Default affecting one Borrower shall be deemed to be an Event of Default for all Borrowers. By way of illustration, and without limiting the foregoing, if any of the events enumerated in the Section entitled “EVENTS OF DEFAULT” occurs to any of the Borrowers (e.g., any of properties of one of the persons becomes the subject of garnishment, attachment, levy, expropriation, seizure, execution, or other legal processes) then such event shall also be considered an Event of Default under the Loan Documents insofar as all Borrowers are concerned.
- In the event of a Borrower’s death, such Borrower’s estate, heirs and personal representatives are required to pay and repay the outstanding obligations of the Borrower(s) under the Loan from the assets of the estate of the deceased Borrower and no action will be taken against the heirs and personal representatives of the deceased Borrower in their personal capacity
- Any Documentary Stamp Tax arising from the loan, whenever applicable, shall be for the account of the borrower and shall be deducted on the net proceeds of the loan.
- Prior to the effectivity of the Loan, the Borrower(s) will be presented with interest rates stated in the Loan Documents, and each Borrower agrees to pay the interest rate, regular or discounted, as provided therein.
- Unless otherwise provided by the Bank, the interest rate for the Loan shall be the regular interest rate indicated in the Disclosure Statement.
PAYMENT AND REPAYMENT
- Each Borrower agrees to pay each Monthly Installment, including any applicable charges and fees, on or before the relevant Payment Date, by providing sufficient funds in his/her/their Bank Savings Account. Loan payments shall be made in full (without deduction for bank fees or charges, which shall be for the account of the Borrower(s). The determination by the Bank of the amount of principal, interest, premiums, fees, penalties, and charges due and payable on each payment date shall be final and conclusive on the Borrower(s), except for manifest error in computation.
- The Monthly Installments (which, for clarity, includes all applicable fees and charges as stated in the Loan Documents) will be automatically debited from the Bank Savings Account on each Payment Date, without need of any further notice or demand from the Bank. The Borrower undertakes to maintain sufficient funds in his/her/their Bank Savings Account to ensure the successful debiting to and payment of the Loan, interest, premiums, fees, penalties, and charges under the Loan Documents.
- Each Borrower may top up his/her/their Bank Savings Account using electronic transfer of payment or through other payment channels such as the use of other debit cards, E-wallets, transfers from other banks, or payments at designated remittance centers.
- Each Borrower understands, agrees, and undertakes that he/she/they will not close his/her/their Bank Savings Account until the full payment of all amounts due under the Loan, including all principal, interest, premiums, fees, charges, and penalties.
- Should the Bank be unable to debit any Monthly Installment from the Bank Savings Account on the relevant Payment Date for any reason (such as, but not limited to, insufficiency of funds), the Bank may consider the Borrower(s) in default. Without prejudice to the foregoing, and in addition to the Bank’s other rights under the Loan Documents and Applicable Law, the Bank has the right to collect and/or directly debit such Monthly Installment from the Borrower’s/Borrowers’ Bank Savings Account on the following and succeeding days until the amounts due have been fully paid.
- In case any payment is not sufficient to pay the total amount payable on the applicable Payment Date or any other given date, the Bank may at its discretion and subject to future determination by the Bank, apply the payment in the following order: first against applicable taxes (if any), then against interest, then against any monthly service fees, then against the principal amount due, then against penalty fees or penalty interest, and then against charges.
- Each Borrower of the bank may pre-terminate or make an early full repayment of his/her loan by calling/messaging the Bank's Contact Center and stating to the attending contact center (CC) agent that he/she requests to pre-terminate his/her loan. Pretermination Requests made beyond 3:00 pm shall be considered to have been made the following day. There is no guarantee on the turnaround time of the request as it is done manually and is reviewed on a case-to-case basis. Subject to approval and applicable bank charges.
LATE PAYMENT FEES AND PENALTIES
- Each Borrower agrees to pay the late payment fee as specified in the Loan Documents, in the event that he/she is unable to fully pay the Monthly Installment on the Payment Date.
- The Bank will collect the late payment fee/penalty, applicable penalties, and interest on the next calendar date after the missed Payment Date, and on any date thereafter until all overdue amounts have been satisfied.
EVENTS OF DEFAULT
- At the sole discretion of the Bank, the Borrower(s)shall be considered in default, irrespective of the reasons for its occurrence and regardless of whether it is voluntary or involuntary, when any of the following events occurs:
- Any Borrower fails to pay any principal, interest and fees or any other sum payable by the Borrower under these Terms and Conditions, and other Loan Documents, as and when due and payable in the manner set out herein and therein;
- Any Borrower provides any incorrect or misleading representation or warranty in connection with the Promissory Note, these Terms and Conditions, other Loan Documents, and other documents required by or submitted to the Bank;
- Any Borrower fails to perform or comply with any term, obligation or covenant contained in, or otherwise defaults under, the terms and conditions of any contract/evidence of indebtedness and related document with the Bank;
- Any Borrower fails to pay or defaults in the payment of the principal or interest relative to, or fails to perform or comply with any term, obligation or covenant contained in, or otherwise defaults under, any contract for borrowed money with any other bank, person, corporation, or entity;
- Any Borrower violates any of the terms and conditions of any contract(s) with any bank or other persons, corporations, entities, for the payment of borrower money or any other events of default shall have occurred under any such contract(s);
- Any Borrower becomes insolvent or unable to pay his/her/their debts or other payment obligations when due or commits or suffers any act of insolvency, which term shall include: (i) the filing of a petition, by or against such Borrower in any insolvency, administration, receivership, suspension of payment, or any other proceeding analogous in purpose and effect; (ii) the making of a general assignment by such Borrower for the benefit of his/her creditors; (iii) the admission in writing by such Borrower of his/her general inability to pay his/her debts or other payment obligations; (iv) the entry of any order of judgment of any competent court, tribunal or administrative agency or body confirming the insolvency of, or inability to pay by, such Borrower; (v) the appointment of a receiver or trustee to take possession of a substantial portion of the properties of the Borrower; or (vi) the taking of any action by the Borrower to authorize any of the foregoing;
- Any Borrower applies for voluntary relief or receives involuntary reliefs or is the subject of involuntary proceedings under any bankruptcy or insolvency law, dies, or becomes legally incapacitated;
- Any of the properties of any Borrower, real or personal, becomes the subject of garnishment, attachment, levy, expropriation, seizure, execution, or other legal processes;
- Any Borrower contests the validity or enforceability of the Promissory Note, these Terms and Conditions and/or the other Loan Documents or shall deny in writing the general liability of the Borrower(s) under any of the foregoing;
- The Bank believes on reasonable grounds that any Borrower fraudulently misrepresented any information or submitted any falsified documents in order to facilitate the granting of the Loan; or
- Any event or circumstance transpires that, in the Bank’s reasonable opinion, will adversely affect any Borrower’s performance or ability to pay the obligations as they fall due under the Loan.
CONSEQUENCES OF DEFAULT
- Upon the occurrence of an Event of Default, the Bank has the right, but not the obligation, to declare the entire unpaid principal amount of the Loan and all interest accrued and unpaid thereon along with any unpaid penalties to be forthwith due and payable, whereupon the same shall become immediately due and payable, without need of presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Borrower. Should any Borrower fail to comply with the demand for payment of all its outstanding obligations to the Bank, the Bank shall have full power and authority to proceed against each Borrower, or, if there are two or more Borrowers, all Borrowers, and to take such other steps or actions against such Borrower or Borrowers, as the case may be, as are provided under these Terms and Conditions and Loan Documents, or under any applicable law, as the Bank may deem necessary and proper for the full protection or enforcement of its rights and remedies.
- Upon default and in addition to the principal amount, interest and late payment charges, each Borrower agrees to pay the charges on the outstanding amount due as stated in the Loan Documents. Such charges may consist of the following:
- Liquidated damages;
- Collection fee;
- Attorney’s fees; and
- Cost and expenses of litigation.
The aforementioned fees or charges are fully indicated in the Disclosure Statement and Amortization Schedule.
- Each Borrower does hereby assign and transfer to the Bank, without need of demand and effective upon any Borrower’s failure to pay the Loan, any portion thereof, or any amount payable under the Loan Documents, and by these presents, each Borrower has assigned and transferred to the Bank, any money, security, property (real or personal) and thing of value which are now or may hereafter be in the possession, custody or control of the Bank or any of its Affiliates, on deposit or collateral or otherwise to the credit of and belonging to the Borrower (the “Assigned Properties”). For this purpose, each Borrower does hereby consent, authorize, appoint, and irrevocably constitute, and by these presents have appointed and constituted, the Bank as its attorney-in-fact with full power and authority (a) to inquire about, or to assert its lien or legal claim on, any of such Assigned Properties, and/or (b) to sell at public or private sale any of such Assigned Properties and to apply the proceeds thereof, in whole or in part, to such obligations. In the absence of such monies, securities, properties (real or personal) or things of value, or if the Borrower’s/Borrowers’ total outstanding balance of the Loan exceeds the proceeds of the sale, each Borrower hereby agrees to assign and deliver any deposit or fund the Borrower(s) may have with any other banks or financial institutions to the extent of said Borrower’s/Borrowers’ obligations to the Bank. For this purpose, each Borrower does hereby consent and authorize said bank or financial institution to disclose to the Bank or its duly authorized representative any information relative to any deposit/placement such Borrower may have with any such banks or financial institutions.
- Each Borrower likewise agrees that in case of default hereunder, the Bank, at its sole discretion, may also appoint or designate representatives, agents, attorney-in-fact, a third-party collection agency or legal counsel to perform any and all acts which may be required or necessary to enforce its rights under the Loan and any security given thereon. For such purpose, each Borrower hereby gives consent to the disclosure of all relevant information in connection with the Loan or account to such authorized representative, agent or attorney-in-fact, third-party collection agency or legal counsel and agrees to hold the Bank free and harmless against any and all damage, cost or liability arising from such disclosure.
- For such purpose, each Borrower further unconditionally and irrevocably authorizes the Bank to debit or set-off such amounts as may be necessary to implement the foregoing from any, some, or all of such Borrower’s accounts with the Bank or its Affiliates. For the foregoing purposes, each Borrower hereby waives his/her rights in favor of the Bank and its Affiliates under Republic Act No. 1405 (The Bank Secrecy Act of 1955), as amended, Section 55 of Republic Act No. 8791 (The General Banking Law of 2000), as amended, Republic Act No. 6426 (Foreign Currency Deposit Act of the Philippines of 1974), as amended, Republic Act No. 10173 (Data Privacy Act of 2012), and other laws/regulations, including all amendments or supplements thereto, relative to the confidentiality of secrecy of bank deposits/accounts, placements, investments, and similar or related assets in the custody of the Bank or its Affiliates. Each Borrower shall hold the Bank, its Affiliates, and their respective directors, officers, employees, representatives, and agents, free and harmless from any liability arising from the Bank’s and/or its Affiliates’ exercise of the remedies and authorities hereunder, or from any action taken or not taken by the Bank or its Affiliates on the basis of the remedies and authorities hereunder.
- In the event an Event of Default has occurred, the Bank has the right to recall and demand repayment of all sums owing by the Borrower(s) to the Bank in respect of other facilities granted by the Bank.
- Once any Borrower fails to pay the full amount due on any Payment Date, the account shall be considered “delinquent”.
- In the event of any delinquency, each Borrower hereby authorizes the Bank to report and/or include such Borrower’s name, loan details and any other necessary information, in the negative listings of any credit bureau or institution, and/or databases of financial industry associations or financial industry bodies.
- In addition, in the event of any delinquency, each Borrower likewise authorizes the Bank to sell, assign, or transfer to one or more persons, or to an entity, all or any part of its rights, benefits, and obligations under the Loan Documents.
- No remedy referred to in these Terms and Conditions or in any Loan Document is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in these Terms and Conditions, the Loan Documents, or otherwise available under law or equity.
AUTHORIZATION AND CONSENT
- Each Borrower authorizes the Bank to obtain and verify the information collected through government agencies or third parties including banks, financial institutions, financial industry associations and/or financial industry bodies and credit bureaus at any time throughout the duration and existence of the Loan. Pursuant to Republic Act No. 9510 or the Credit Information System Act (“Republic Act No. 9510”), each Borrower agrees that the Bank is required and allowed to disclose and shall disclose from time to time, to the Credit Information Corporation and/or the Negative File Information System of the regulatory-accredited organizations, the Borrower’s basic credit data, as defined under Section 4.4 of the implementing rules and regulations of Republic Act No. 9510, and such information regarding the Borrower as may be required by Republic Act No. 9510 and its implementing rules and regulations, which the Bank is required to disclose to the Philippine Credit Information Corporation, and such information as the Bank may deem necessary or as may be required or allowed by applicable laws, rules and regulations. Each Borrower also allows the Bank to conduct background checks on his/her financial capability, personal references, or any other legitimate purpose the Bank may deem necessary for the application process and/or approval of the Loan, including the use of third party vendors or partners, and applications.
- Each Borrower represents and warrants that the third-party reference persons whose information are provided to the Bank are personally known to him/her, are of legal age, have sufficient legal capacity, are residents of the Philippines, and have existing local mobile numbers. Each Borrower further warrants that he or she has obtained their prior consent before submitting the third parties’ names and contact details to the Bank and such third parties have also consented to be contacted by the Bank for any verification purposes. Each Borrower agrees that such reference persons may be contacted by the Bank in the event of a) delinquency, b) default of the Borrower(s), c) in the event the Borrower(s) cannot be contacted or d) any verification that the Bank may want to perform as regards the Borrower(s). Each Borrower authorizes the Bank and the reference persons to share information and communicate with each other regarding the Loan.
- Pursuant to applicable Bangko Sentral ng Pilipinas (or “BSP”) regulations and circulars, each Borrower waives the confidentiality of client information for the purpose provided under such BSP regulations and circulars. In addition, the Bank is authorized to conduct random verification with the Bureau of Internal Revenue in order to establish authenticity of any and all income tax returns and accompanying financial statements submitted by the Borrower(s). Further, should the document(s) submitted prove to be spurious or incorrect in any material detail, the Bank may terminate the Loan or other credit accommodation granted on the basis of said document(s) and shall have the right to demand immediate repayment or liquidation of the obligation. Moreover, the Bank may seek redress from the court for any harm done by the Borrower’s submission of spurious documents.
- Each Borrower hereby waives his/her rights under existing laws relative to the confidentiality of the Loan, the Promissory Note, and such other information or documents relative thereto in favor of the Bank, the BSP, the proper courts and such other administrative and government offices which may require the disclosure of the aforementioned information and documents.
- Each Borrower hereby authorizes the Bank to use or assign the loan, as part of its loan portfolio, as security or collateral for any loan or securitization the Bank will apply for from any international/domestic financing institution, as allowed by Applicable Law.
- Each Borrower agrees and gives his/her continuing consent to the authorizations contained herein throughout the duration and existence of the Loan.
- Each Borrower shall not assign any of his/her rights and obligations under these Terms and Conditions or the Loan Documents.
- The Bank may at any time, and from time to time, sell, transfer, assign, or grant a participation or allow the grant of a sub-participation, to one or more persons or entities, all or any part of its rights, benefits, and obligations under the Loan, these Terms and Conditions and/or the other Loan Documents without need of consent or notice to the Borrower. Upon any sale, assignment, participation, or sub participation by the Bank, the buyer, assignee, participant, or sub participant shall be entitled, to the extent of the interest sold, assigned, participated, or sub participated, to the benefit of the indemnities, reimbursements, and rights of set-off of the Bank pursuant to the provisions of this Terms and Conditions. For clarity, the Bank can exercise these rights even after an Event of Default has occurred.
- In addition to any other assignment permitted pursuant to this Section, the Borrower hereby acknowledges and agrees that (x) the Bank, either by itself or together with its Affiliates or third parties (“Lender Parties”) may sell or securitize the Loan (a “Securitization”) through the pledge, mortgage, and/or assignment of the Loans as collateral security for loans to a Lender Party or the assignment or issuance of direct or indirect interests in the Loan (such as, for instance, collateralized loan obligations), (y) such Securitization may limit the Bank’s role as servicing and collecting bank, and (z) such Securitization may be rated by a rating agency. Each Borrower shall cooperate with the Lender Parties to effect the Securitization including by (a) executing such additional documents, as reasonably requested by the Bank in connection with the Securitization, and (b) providing such information as may be reasonably requested by the Lender Parties or rating agencies in connection with the rating of the Loans or the Securitization.
- Without limiting the foregoing, the Bank is also given the authority to assign, transfer, or place Non-Performing Loans or delinquent Loans to a Special Purpose Vehicle (“SPV”) or Financial Institutions Strategic Transfer Corporation (“FISTC”), subject to the rules and conditions set forth under Republic Act No. 11523 and its Implementing Rules and Regulations, as well as other Applicable Laws.
- In the event of such sale, transfer, assignment, securitization, or grant by the Bank to an assignee or any successor-in-interest, including the FISTC or SPV, each Borrower undertakes that he/she and, if applicable, the other Borrower(s) (a) shall not assert against the assignee or the successor-in-interest the right to set-off any obligations owed by the Bank to the Borrower(s), and (b) agrees that he/she/they shall remain liable for all obligations under these Terms and Conditions and the Loan Documents.
- In the event of the acquisition of the Bank by another entity or the sale of the Loan obligations of the Borrower to another entity by the Bank, each Borrower also agrees that he/she and, if applicable, the other Borrower(s) shall be liable to the acquiring entity for all obligations under these Terms and Conditions and the Loan Documents. Each Borrower further agrees that the Bank may act as a via-media between him/her and, if applicable, the other Borrower(s) on the one hand, and the acquiring entity, on the other hand, to facilitate the fulfilment of his/her/their liabilities/obligations towards the acquiring entity and shall follow the necessary directions from the Bank or the acquiring entity in relation to the Loan and Loan Documents, and the obligations contained therein.
- No failure, omission or delay on the Bank in exercising any right, power, privilege or remedy accruing to the Bank under these Terms and Conditions or the Loan Documents shall impair any such right, power, privilege or remedy nor shall it be construed as a waiver of any such breach or default thereafter occurring, nor shall a waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, either under the Promissory Note or by law or otherwise afforded the Bank shall be cumulative and not alternative. No notice to or demand on a Borrower in any case shall entitle it to any other or further notice or demand in similar or other circumstances.
CONFIDENTIALITY AND DISCLOSURE OF INFORMATION
- Each Borrower agrees to treat as confidential information any information of the Bank obtained during the course of the Loan application process, including the loan products and services offered by the Bank, as well as any information pertaining to the Bank, its business, its operations, its processes, its Affiliates, the Bank’s and its Affiliates’ shareholders, directors, officers, employees, advisors, and agents. Each Borrower hereby undertakes to hold all confidential information in strict confidence, and not directly or indirectly disclose or permit to be disclosed any confidential information to any other person or entity.
COMMUNICATIONS AND DATA PRIVACY
- Each Borrower hereby reiterates his/her consent and agreement to the terms and conditions of the Privacy Statement, and such terms and conditions are hereby incorporated herein by reference and shall apply as if fully set forth herein mutatis mutandis.
- Each Borrower hereby agrees to give his/her, and if there other Borrower(s), such other Borrower(s)’ true, correct information and consents to the gathering, processing, keeping, storing, verification, and use of the same pursuant to the Bank’s Privacy Statement, and the terms, conditions, and permissions set out therein.
- In addition to the consents, authorizations and agreements stated in the Privacy Statement, each Borrower hereby agrees that the collected Personal Data can also be used for or in the following means:
- sending of updates and notifications in relation to the Loan;
- used in any market research or study of the Bank on its loan products;
- marketing of products and services of the Bank, and its Affiliates, and of Merchant-Partners, including marketing initiatives, special offers, or promotional activities through e-email, SMS, telephone calls, social media, e-commerce or other means of communication or channels;
- enhancing the products of the Bank, which includes surveys, benchmarking, profiling, statistical analysis, planning and research;
- curation of offers of other products or services that will fit each Borrower’s profile.
- In this regard, and without limiting the coverage, scope, consents, and authorities granted under the Bank’s Privacy Statement, each Borrower hereby agrees and consents for the Bank to collect, hold, use, and share the Borrower’s Personal Data to the Bank’s Affiliates (as the said term is defined in the Bank’s Privacy Statement), merchants, and the Bank’s co-branding and other strategic partners (such merchants and co-branding and strategic partners, collectively, “Merchant-Partners”) for as long as such Borrower’s records and Personal Data are required and/or allowed by law to be retained and processed, whether for the Borrower’s/Borrowers’ protection or for the protection and pursuit of the legitimate interests and/or business purposes of the Bank, which purposes include (a) accepting, processing, and approving or disapproving, the Loan application, (b) determining the Borrower’s/Borrowers’ eligibility for the Loan, and (c) granting or disbursing, monitoring, collecting, releasing, implementing, and enforcing the Loan, these Terms and Conditions, and other Loan Documents.
- In line with, but without limiting, the foregoing, each Borrower hereby:
- allows and authorizes the Bank, to use his/her Personal Data to disclose to, and verify information with, Tonik’s agents and third-party service providers, The Credit Information Corporation (CIC), Philippines, the Banker’s Association of the Philippines – Credit Bureau (BAP – CB) or to any similar central monitoring entity or recipients as defined in Republic Act No. 9510, which processes information, transactions, services, or accounts, on behalf of the Bank;
- agrees that the Bank, directly or through its Affiliates, agents, third-party service providers, and/or Merchant-Partners, may collect, retrieve, process, use and store his/her Personal Data such as name, age, photographs, fingerprints, other biometric data (e.g., facial recognition and voice recognition), mobile number/s, email address, mobile phone usage data, mobile phone device data, employment details, social media footprint, income, financial data, financial profile, credit standing, loan payment history, and other information required in the application form for the purpose of reviewing and processing the Borrower’s Loan application, and enforcing and defending the Bank’s rights and remedies under the Loan Documents;
- consents to the collection of his/her Personal Data from such Borrower himself/herself, from other Borrower(s) (if there are other Borrower(s)), or from other personal information controllers such as, but not limited to, telecommunications companies (such as Globe Telecom Inc, SMART Communication Inc), for credit scoring purposes;
- consents to the sharing of his/her Personal Data, such as mobile number, email address, name, device data, IP address , and address, with a credit scoring service provider for credit investigation, credit scoring (including Telco Score), data analytics, and data profiling, which includes the regular updating of the Borrower’s/Borrowers’ credit score;
- agrees that the Bank has the right to contact and communicate with each Borrower’s co-signor(s), relatives, friends, payees, beneficiaries, attorneys, attorneys-in-fact, guarantors, and, employees and officers of such Borrower’s employer (whether or not the identifies of such persons were provided by the Borrower or obtained by the Bank from the internet or other sources in the public domain), and to use each Borrower’s Personal Data in communicating with such persons for the purposes set out in these Terms and Conditions and the Bank’s Privacy Statement.
- Each Borrower hereby waives the confidentiality of his/her Personal Data and/or information for each of the purposes set out in these Terms & Conditions and in the Bank’s Privacy Statement.
- Throughout the processing of each Borrower’s Personal Data, his/her rights under the Data Privacy Act of 2012, such as the: (a) right to be informed, (b) right to object to processing of his/her personal data, (c) right to access, (d) right to rectification of his/her data, (e) right to erasure or blocking, (f) right to complain, and (g) right to damages, shall be upheld. Entities to whom we share your data will also respect the same rights.
- If any one or more of the provisions contained in these Terms and Conditions or any document executed in connection therewith (including any other Loan Document) shall be declared by any court of competent jurisdiction as invalid, illegal or unenforceable under any applicable law, the validity, legality and enforceability of the remaining provisions contained therein or such document executed in connection therewith shall not in any way be affected or impaired.
GOVERNING LAW AND VENUE OF ACTIONS
- These Terms and Conditions and the other Loan Documents shall be governed by, and construed in accordance with, the laws of the Republic of the Philippines. Each Borrower irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Agreement shall be instituted before the proper court in the City of Pasig, and each Borrower submits to and accepts with regard to any such action or proceeding for himself/herself and/or other Borrower(s), if any, and in respect of his/her/their properties or assets, generally and unconditionally, the jurisdiction of any such court, to the exclusion of all other courts and venue. Each Borrower hereby waives any objection which he/she may now or hereafter have to the laying of the venue of any such action, suit or proceeding, and further waives any claim that any such suit, action or proceeding has been brought in an inconvenient forum. The foregoing, however, shall not limit or be construed to limit the rights of the Bank to commence proceedings or to obtain execution of judgment against the Borrower(s) in any venue or jurisdiction where assets of the latter may be found.
- The Bank reserves the right to change these Terms and Conditions by way of addition, modification, amendment, etc. (“Changes”) at any time and from time to time; provided that notice shall be given to the Borrower(s) at least (30) calendar days prior to its effectivity. The Borrower(s) shall be notified of such Changes as provided in the methods of communication enumerated under these Terms and Conditions. The Changes shall apply on the effective date specified by the Bank in the Bank’s notice.
- In the event of any concerns or inquiries relating to these Terms and Conditions, the Borrower(s) may contact Tonik through the following:
- Each Borrower acknowledges and declares that the foregoing terms, authorizations, covenants, undertakings, consents, and waivers have been fully explained to him/her. Each Borrower further confirms that he/she has fully understood and unconditionally agrees to be bound by the same. He/she further acknowledges, agrees, and declares that these Terms and Conditions are binding on her/him and her/his heirs, successors, and assigns. The Bank shall be entitled to rely on and enforce this document against the Borrower(s) and his/her/their properties and assets.
Borrower Service Hotline: +63 253222645
Borrower Service Email Address: firstname.lastname@example.org
PART II. ADDITIONAL PROVISIONS FOR EACH TYPE OF LOAN
This Part II contains additional terms and conditions applicable to the specific Loan applied for, and/or incurred or to be incurred by, the Borrower.
A. ADDITIONAL PROVISIONS APPLICABLE TO BNPL LOAN or SHOP INSTALLMENT LOAN
In addition to the Definitions section in Part I:
- “Merchant” refers to entities that are engaged in the business of selling appliances / equipment / product / service and have an existing agreement with the Bank to offer BNPL Loans.
ELIGIBILITY AND APPLICATION
- In addition to the requirements set out in the Eligibility and Application section in Part I, To apply and qualify for BNPL, the Borrower should be between 18 to 60 during the loan application. And in order for the Borrower to be eligible for the discounted interest rate, the Borrower must purchase goods directly from the Bank’s partner Merchant or the Borrower must submit an Official Receipt from the Merchant for the selected appliances/equipment/product/service as proof of purchase and other documents that may be required by the Bank within the seven-day period specified in the Loan Documents, and comply with the guidelines to be issued by the Bank from time to time (which may provide the eligible type of appliances/equipment/product/service, period to submit documents, adequacy of monetary sum reflected in the Official Receipt amount, etc.). The Official Receipt must (a) be issued in the name of the Borrower, (b) be issued no earlier than the issuance date of the loan disbursement to the Borrower’s Bank Savings Account and no later than 7 days from issuance date of the loan disbursement to the Borrower’s Bank Savings Account, and (c) cover the purchase of the appliances/equipment/product/service as described in the Loan Purpose / Use of Proceeds portion of the Promissory Note or the loan application forms. The Official Receipt and other documents shall be subject to the Bank’s final evaluation and the Bank’s sole discretion.
- At the Bank’s sole discretion, the interest rate for the Loan may be reduced to the discounted interest rate if the Borrower is able to submit the required documents within the seven-day period specified in the Loan Documents, and the Bank has determined in its final evaluation that the said documents are acceptable.
- If the Borrower is not able to submit any of the requirements provided under the immediately preceding Subsection or if the documents are not acceptable to the Bank, the BNPL Loan will be subject to the regular interest rate.
OBLIGATIONS AND COVENANTS
- The Borrower further agrees that, if the Loan is approved, the Bank has the sole option and discretion to either credit the Loan proceeds to his/her/their Bank Savings Account or paid directly to the Bank’s partner Merchants.
B. ADDITIONAL PROVISIONS APPLICABLE TO LOAN SECURED WITH A MORTGAGE DEFINITIONS
In addition to the Definitions section in Part I:
- “Deed of Mortgage” means the deed of real estate mortgage executed or to be executed by the Borrower or Borrowers, whichever is applicable, under the Loan with Mortgage, in such form and with such contents as shall be acceptable to the Bank.
- “Loan Documents”, as defined in Part I, is deemed to include the Deed of Mortgage.
- “Property” refers to the condominium unit used as the security and collateral to the Loan with Mortgage, as properly described in the corresponding Deed of Mortgage executed between the Borrower or Borrowers, whichever is applicable, and the Bank.
ELIGIBILITY AND APPLICATION
- Notwithstanding provisions set out in the Eligibility and Application section in Part I, in order to apply and qualify for a Loan with Mortgage, each Borrower must: (a) have the legal capacity to enter into binding contracts, (b) at the time of application, aged between 23 to 55, (c) must own a residential condominium unit within Metro Manila that can be provided as a collateral, (d) have a valid copy of Condominium Certificate of Title registered in the name of the Borrower, free from liens and encumbrances, and (e) if a Borrower is married and his/her spouse is not a co-borrower (“Spouse”), the Spouse must also have the qualifications under (a) to (d) above.
- As a pre-condition to the release of the Loan, each Borrower and, if married, the Spouse must personally appear at the Bank’s designated closing center, provide the necessary additional documents, and physically sign on these Terms and Conditions, the Deed of Mortgage, and such other Loan Documents as the Bank may require.
- Additionally, as a pre-condition to the release of the Loan and as a pre-condition to any renewal of the Loan, the Borrower(s) must avail of mortgage redemption insurance (“Mortgage Redemption Insurance”) and property insurance (“Property Insurance") with such insurance company/ies and under such terms and conditions acceptable to the Bank, which insurance policies should name the Bank as the Beneficiary. Such insurance policies should subsist during the entire duration of the Loan. Should the Borrower(s) avail of the required insurance policies from an accredited provider of the Bank, the 1st year premium payment shall be automatically deducted from the Loan proceeds, and the renewal premium payments on the subsequent years depending on its loan tenure shall be paid in lump sum by the Borrower on or before each anniversary period. Should the Borrower(s) avail of the required insurance policies from other providers, the Borrower(s) shall submit a copy of the insurance policies, proof of the insurance payments and other documents, as may be requested from the Bank from time to time.
- Each Borrower and each Spouse agrees and hereby irrevocably appoints the Bank as his/her and, if applicable, the Spouse and the other Borrower(s)’ attorney-in-fact with full authority to collect any indemnity or claim due thereon in case of concurrence of any insured event covered by Mortgage Redemption Insurance or any of partial loss or complete damage of the insured property and apply such proceeds thereof in full or partial payment of the Loan.
- Each Spouse hereby agrees to be bound by, gives his/her consent under, and undertakes to comply with, these Terms and Conditions and the other Loan Documents. By way of illustration, and without limiting the foregoing:
- in the Sections entitled “REPRESENTATIONS AND WARRANTIES”, the Spouse also makes the same representations and warranties set out therein, with all references to “Borrower” therein being deemed to refer to the Spouse for purposes of this Section..
- if any of the events enumerated in the Section entitled “EVENTS OF DEFAULT” occurs to the Spouse (e.g., any of the Spouse’s properties becomes the subject of garnishment, attachment, levy, expropriation, seizure, execution, or other legal processes), with all references to “Borrower” therein being deemed to refer to the Spouse for purposes of this Section, then such event shall also be considered an Event of Default under the Loan Documents.
- In furtherance of, and without limiting, the foregoing, each Borrower, and each Spouse hereby jointly and severally covenants to the Bank as follows:
- to pay to the Bank on demand all sums of money which shall from time to time and at any time be owing or payable to the Bank under the Loan Documents, or which any of them may be or become liable to pay to the Bank in connection with, or arising out of, any of the Loan Documents;
- perform and observe the covenants under the Loan Documents; and
- perform, observe and be bound by the terms and conditions set out in the Loan Documents.
- Each Borrower represents and warrants to the Bank that his/her Spouse is aware of, and has agreed to, these Terms and Conditions and the other Loan Documents, has agreed to be bound hereby and thereby, and that the Spouse hereby makes the representations and warranties, as well undertakes to comply with covenants and undertakings set out in these Terms and Conditions and the other Loan Documents. Each Borrower further represents and warrants that his/her Spouse has irrevocably authorized the Borrower to act for and on behalf, and to bind, the Spouse, including, without limitation, sending and receiving notices, demands, and communications to and from the Bank and other persons and entities, sign, execute, and deliver agreements, supplements, amendments, documents, and other papers for and on behalf of the Spouse.
REPRESENTATIONS AND WARRANTIES
- In addition to the representations and warranties contained in Part I and in the Deed of Mortgage, each of Borrower, and each Spouse (if applicable), further represents and warrants that:
- he/she/they is/are the owner of the Property and has full power and authority to mortgage or encumber the same.
- the Property is not subject of any action, suit, proceeding or official investigation before a court, arbitral tribunal or other government body pending or threatened against, or affecting the Property.
- the Property is free and clear from any legal claim, lien, encumbrance, charge, or restriction of whatsoever nature.
- he/she/they shall continue paying the real property taxes and the applicable condominium association /corporation charges due on the Property for the duration of the Loan.
- if the Condominium Certificate of Title covering the Property is registered in the name of the Borrower and his/her spouse (including “[Borrower] married to [name of spouse]”), the Borrower further represents and warrants that his/her spouse has full knowledge and consents to the application for a Multipurpose Loan product with the Bank. The Borrower undertakes to immediately deliver, from time to time upon request by the Bank, the written consent of his/her spouse.
OBLIGATIONS AND COVENANTS
- In the event of a Borrower’s or, if applicable, the Spouse’s death or permanent disability and/or upon loss or damage of the Property, the principal outstanding balance from the insured amount shall be paid in full to the Bank as the primary beneficiary of the Mortgage Redemption Insurance and Property Insurance – any excess will be payable to the relevant Borrower, his/her Spouse, or such Borrower’s or Spouse’s secondary beneficiary, whichever is applicable, but the same should be routed through the Bank.
- In case of partial loss or damage to the Property, the insurance provider will pay the Bank or compensate the relevant Borrower or, if applicable, his/her Spouse (subject to approval from the Bank) for any partial loss or damage incurred from the events covered by the Policy.
- In accordance with Part I of these Terms and Conditions, the automatic direct debit may, at the instance and sole discretion of the Bank, be suspended or placed on hold in the event that the Bank determines that the Property has suffered a loss or damage, and an insurance claim is filed. In the event the Bank obtains payment and repayment from the Mortgage Redemption Insurance and/or Property Insurance, the Bank shall provide the Borrower(s) with a copy of the updated remaining Loan balance after applying such insurance proceeds, and the automatic direct debit shall continue on the next Payment Date.
- Each Borrower agrees and acknowledges that the Bank has the right, but not the obligation, to register the mortgage on the Property with the appropriate Registry of Deeds in the Philippines. Each Borrower and each Spouse (if applicable) agrees to perform such other acts, deeds, registrations, deposits and formalities necessary or reasonably advisable to give full effect to, ensure the validity of, and render enforceable against the Borrower and all other persons, such Mortgage.
- In the event the Loan with Mortgage will be renewed for another year/s, the renewal premiums/fees for the Mortgage Redemption Insurance and Property Insurance will be debited from a Borrower’s/Borrowers’ Bank Savings Account on the Payment Date prior to the expiration of the relevant insurance policy/ies or any date thereafter till such renewal premiums/fees are paid in full. Should the balance in the Borrower’s/Borrowers’ Bank Savings Account be insufficient, the Bank may consider the Borrower in default.
- In the event that the Property is destroyed, whether wholly or partially, or the Bank determines that the physical condition or the market value of the Property has deteriorated or diminished for any cause, including force majeure, or be the subject of expropriation proceedings, in whole or in a part, the Bank shall have the option to demand that the Borrower(s) to immediately pay the Loan in full or to immediately provide additional properties of sufficient quantity and quality acceptable to the Bank (“Additional Collateral”). Such Additional Collateral shall be subject of the terms and conditions of the Loan Documents and the term “Property” shall include the Additional Collateral, without need for further act or deed; provided, that, at the instance of the Bank, the Borrower(s) shall, from time to time, promptly execute, deliver and register, at the Borrower’s/Borrowers’ own expense, such instruments and documents (including, without limitation, any additional or supplemental mortgage document or agreement), and take all further action that, in the opinion of the Bank, is necessary in order to (a) perfect, preserve and protect the security created over the Additional Collateral and all rights, and interests of the Bank over Additional Collateral, and/or (b) to enable the Bank to exercise and enforce its rights and remedies hereunder with respect to the Additional Collateral or any part thereof. For clarity, if the Bank opts to require the Borrower(s) to provide Additional Collateral and the latter fails to provide the same to the satisfaction of the Bank, then such failure shall be deemed as a breach of the Loan Documents, and the Borrower(s) shall be considered in default.
CONSEQUENCE OF DEFAULT
- As an additional remedy, the Bank has the right to exercise and enforce its rights under the Deed of Mortgage.
C. ADDITIONAL PROVISIONS APPLICABLE TO LOAN LINKED TO A SALARY CARD
- “Salary Bank Account” refers to the employment payroll account of the Borrower, which may be provided by any BSP registered bank in the Philippines.
- “Salary ATM Bank” refers to the BSP registered bank which the Borrower has a Salary Bank Account and Salary ATM Card with.
- “Salary ATM Card” refers to the Philippines-issued ATM debit card linked to the Borrower’s Salary Bank Account.
ELIGIBILITY AND APPLICATION
- Notwithstanding provisions set out in the Eligibility and Application section in Part I, in order to apply and qualify for a Loan with Mortgage the Borrower must: (a) have the legal capacity to enter into binding contracts, (b) at the time of application, aged between 23 to 55, and (c) have an existing, valid, and local 3D-Secure (3DS) Salary ATM Card as a source of payment.
PAYMENT AND REPAYMENT
- The Monthly Installment will be automatically debited from the linked Salary Bank Account on each Payment Date as reflected in the Disclosure Statement, without need of any further notice or demand from the Bank. The debited payment will be transferred to his/her registered Bank Savings Account from which the said amounts will be debited on Payment Date. The Borrower should ensure that there are sufficient funds in his/her Salary Bank Account to ensure the successful collection of the Monthly Installment amounts. The Borrower undertakes to maintain sufficient funds in his/her Bank Savings account to ensure the successful debiting to and payment of the Loan, interest, premiums, fees, penalties, and charges under the Loan Documents.
- Prior to the disbursement of the Loan, the monthly Payment Date to be reflected in the Disclosure Statement for the Loan shall be freely selected by the Borrower based on his/her payroll payment. Once selected, and unless further advisories of the Bank is issued, no change of due date by the Borrower shall be allowed.
- In the event that the Borrower’s Salary ATM Card is deactivated, or a new Salary ATM Card is issued (e.g. because the Borrower’s Salary Bank Account has changed in case of transfer of employment), the Borrower must update his/her account details and link the new Salary ATM Card for purposes of the Loan. The Borrower must execute an updated Direct Debit Form and other necessary documents. In case of the unavailability of a new Salary ATM Card or prior to the updating of his/her account details, the Borrower must top up his/her Bank Savings Account so that the Monthly Installment amounts may be debited from his/her Bank Savings Account in accordance with Sections 29 and 30 of Part I.
- At the Bank’s discretion and subject to future determination by the Bank, the applicable fees and charges due may be deducted from the Borrower’s Salary Bank Account and in the event that the Bank is unable to debit the applicable fees and charges from the Borrower’s Salary Bank Account (such as, but not limited to, insufficiency of funds), the Bank shall have the right to collect and/or directly debit from the Borrower’s Bank Savings Account.
- The Borrower agrees that the authorization for automatic direct debit from the Bank Savings Account or the linked Salary Bank Account shall remain effective notwithstanding the occurrence of any unfortunate event such as the death or permanent disability of the Borrower until notice of such death is received by the Bank.
D. ADDITIONAL PROVISION APPLICABLE TO AN UNSECURED CASH LOAN
- While an Unsecured Cash Loan is not secured by a mortgage, the Borrower acknowledges and agrees that the Bank has, among others, a right to debit the Monthly Installments from the Bank Savings Account, and rights over the Assigned Properties (even if such rights constitute a security arrangement) pursuant to the terms and conditions set out in Part I.