Employee Loan Information

Employee Loan – Terms and Conditions

1. SCOPE – the terms and conditions of this loan shall be applicable to all employees of SBF Inc. (SBF) including the employees of Security Bank Corporation (SBC) and its subsidiaries and affiliates (“Group”). I understand that the terms and conditions, including the commercial terms, e.g. interest rate, processing fees, penalties and/or charges granted by reason of my affiliation and the same will be revoked once the employment with the group is lacking. I further understand that in such cases, there is a need to execute another contract to cover my loan unless I opted to fully settle the same.

2. PRODUCT – I understand that I may avail a loan with SBF through its Personal Loan, eSALAD,ORCR4Cash or MotorsikLoan subject to the availability of the facility of the products offered by the latter to its employee or to group. The said availability is discussed during the application and may be changed from time to time without need of notice.

3. DEFINITION OF TERMS – The following, as used herein, and in the Statement of Account to be sent to me shall be understood to mean:

3.1 “Employee Loan” – any amount credited to my assigned account number, or any loan proceeds released under my name as a result of my request and confirmation to advance my salary either via SBF (“SBF”) Online Portal or SBF Mobile Application and/or any other specified means that SBF may allow in the future.

Employee Loan shall be subject to the following:

i. Interest – I hereby agree to pay SBF interest on outstanding Employee Loan computed and billed every due date based on its prevailing monthly rate, which I will be notified of as I send my loan request. In case of interest rate granted by virtue of my employment with the group but subsequently impaired due to resignation, termination or separation from the group, SBF may charge the regular interest similar to those imposed with non- employee client.

ii. Processing fee – I hereby agree to pay SBF processing fee charged on every request as a percent of requested amount based on its prevailing rates, and deducted upfront from my requested amount.

iii. Verification process – My Employee Loan requests are still subject to SBF’s evaluation and validation. Should my request be disapproved, SBF will notify me of the disapproval via SMS, SBF mobile app, or any other specified means as SBF may allow in the future.

iv. Confirmation – Should my request be approved, SBF shall inform me of the approved Employee Loan amount, effective interest rate, processing fee charges, net proceeds to be credited to my payroll account or to my assigned non-payroll account with SBC, penalty fees, amount to be paid per due date, and other applicable charges either via SMS, SBF Mobile App, or any other specified means as SBF may allow in the future, and shall require my conformity either via email acknowledgement, SBF Online Portal or SBF Mobile App before booking my Employee Loan.

v. Disbursement – SBF shall credit the loan proceeds to my payroll account or to my elected non-payroll account with SBC number as I provided, and a notification will be sent either thru SMS or SBF Mobile Application upon crediting. Any erroneous details which I supplied that caused the proceeds to be credited to a different account number shall be my sole responsibility holding me liable to pay the appropriate amortization in accordance with the schedule, and it shall not result in the cancellation of the booked loan. Further, I render SBF free and harmless from any damages, loss, or liabilities I would suffer as a consequence of SBF’s reliance to the information I provided to avail of my loan.

3.2 “Employee Loan Limit” – means the maximum amount I can avail of at any time to be set by SBF based on my latest one-month payslip.

3.3 “Employee Loan Due Date” – means the agreed due date of SBF and or any member of the group based on the executed Memorandum of Agreement (MOA), which will also serve as the basis of my payment dates, and maturity date of my Employee Loan. I understand that the due date will not be deferred by reasons known or unknown to me, whether legal, resulting in lack of funds in my payroll or elected non-payroll account with SBC.

3.4 “Evidence of Loan” – Employee Loan shall be evidenced by the request and confirmation made either via SBF Online Portal, SBF Mobile Application, or any specified means as SBF may allow in the future. SBF shall have the right to keep all evidence of my Employee Loan. It is acknowledge that the evidence and the corresponding Statements of Account are valid and conclusive proof of all transactions.

4. WAIVER and CONSENT TO DEDUCT – I authorized SBF, SBC or any member of the Gorup and/or its partners handling the payroll of the Group or its appropriate employee handling the elected non- payroll account to deduct the amount indicated in the Promissory Note (PN) or Disclosure Statement (DS) or documents related to the loan with SBF for purposes of settling my obligation as it falls due or in accordance with its process. In cases of resignation, termination or separation from the Group, I further authorized to deduct the remaining amount of my loan to my last payment. In relation thereto, I hereby waive my rights granted by the labor code or any laws, rules and regulations of the Philippines issued by any appropriate body, agency or equivalent in connection with the deduction of my salary for the said purpose In cases of resignation, termination or separation from SBF or the Group, the employment clearance, which is usually released after a certain period, in accordance with the processes, policies, guidelines or equivalent document of the Group will be released. However, my failure to fully settle my obligation with SBF to cover my obligation will give rise to the group to hold the same until I complied with the said requirement.
In such cases mentioned above or other cases that will result no or insufficient funds in my payroll or elected non-payroll account with SBC, I understand that I have the obligation to pay manually or by other channels available to settle the amount due. I also understand that and authorize SBF, SBC or 5. 6. 7. 8. any member of the Group and/or its partners handling my payroll or non-payroll SBC account to debit or deduct the amount due as provided by SBF for the missed amortization and my failure to pay
manually or by other channels or if the whole amount of my loan becomes due and demandable. I hereby hold SBF, any member of the Group or its partners mentioned above free and harmless from any liabilities in connection with the deduction of my salary for the said purpose.

ELECTION AND WAIVER OF BANK SECRECY AND BANKING LAWS – I hereby elect the bank account maintained or will be maintained with the SBC Group opened as payroll or will be used as disbursement or settlement account which was submitted or communicated with SBF for purposes of disbursement of the loan proceeds and deduction for settling the monthly obligations of the loan, including, the penalties and charges, as applicable. Relative to the election of the said account and to allow SBF to provide my employer with a consolidated billing statement upon request, which shall contain my outstanding Employee Loan, next due date, maturity dates, outstanding balances, remaining terms, installment amounts, past due amounts, penalties, interests, and total amount due, I hereby waived my rights granted by the any bank secrecy laws of the Philippines, including, R.A. 1405, R.A. 6426 or the General Banking Act and Data Privacy Act. With the waived and authority granted for the said purpose. I hold the Group free and harmless from any liability arising to the said waiver. I also waive in advance my right to make application of payment under Art. 1252 of the Civil Code of the Philippines (RA No. 386), especially in the case where I have more than one obligation in favor of SBF, regardless of the source and nature of the said obligations.

ADHERENCE TO THE CODE OF CONDUCT – Non-payment or default to my obligation with SBF finance shall give rise to the applicable sanctions or provision of its Code of Conduct or equivalent document to the extent of termination. Likewise, the non-payment or default to my obligation is a ground for disqualification to any recognition which includes promotion or merit increase or its equivalent.

PURPOSE. I hereby confirm that the purpose of the loans is for personal consumption or for family use.

SUBSCRIPTION. SBF shall make my subscription to the program valid, commencing on the date that my application was approved by SBF until any of the following, whichever comes first: a. b. c. d. Receipt of information from my employer regarding termination of my employment. Any outstanding loan from the Program incurs past due. My account is considered delinquent based on the provisions herein. Anytime SBF deems termination / cancellation of my Employee Loan Program subscription
necessary to protect its interest.

9. CREDIT GROUP LIFE INSURANCE (CGLI). These provisions shall be applicable to the appropriate SBF products Personal Loan, eSALAD, ORCR4Cash or MotorsikLoan.

9.1 INTERPRETATION AND DEFINITIONS
a. “Actively-At-Work” shall mean the Borrower is not prevented from performing all his normal activities because of injury or illness or is not hospital confined.
b. “Evidence of Insurability” shall mean a written statement or proof of a Borrower’s insurability upon which acceptance for insurance shall be determined by the PARTNER INSURANCE COMPANY-partner.
c. “Outstanding Indebtedness” shall mean the total amount of unpaid indebtedness under a contract of indebtedness with respect to which a Borrower is insured herein as stated in the maximum coverage according to its insurance policy or insurance document.
d. “Partner Insurance Company” means the insurance provider duly registered and regulated by the Insurance Commission of the Philippines Partner, to which SBF established a partnership with for issuance of coverage for its Borrowers. SBF shall have
the sole discretion and prerogative as to which Partner Insurance Company it will engage as a partner for purposes of the
PARTNER INSURANCE COMPANY bundle.

9.2 ELIGIBILITY, APPLICATION AND LIMITATIONS
The Credit Group Life insurance is available to eligible SBF Borrowers who are in good health and provided they are at least 18 years old but not more than 65 years old who met the minimum loan amount and have complied with the requirements in the succeeding provisions. However, members who are in military naval or air service or those who are
engaged in hazardous activities like deep-sea diving, mountain climbing, and underground mining are not eligible to participate.

9.3 INSURABILITY

a. b. c. The Borrower, in order to be covered by the Credit Group Life insurance, hereby attests that, prior to loan onboarding, he/she is:

a. c. The borrower between eighteen (18) to sixty five (65) years old;

b. physically and mentally healthy; have never had any congenital birth disease, heart disease, high blood pressure, lung or kidney ailment, tumor, mass or cancer or any other physical impairment; have not undergone operations or hospitalized, nor been treated for any illness in the past twelve (12) months. Further, the Borrower must be actively-at-work, and not in military, naval or air service, and have satisfied any additional Evidence of Insurability as maybe required by SBF and/or its PARTNER INSURANCE COMPANY-partner. The Credit Group Life insurance shall take effect on the date such evidence is approved by
Partner Insurance Company and provided the Borrower is then Actively-At-Work. The Partner Insurance Company reserves the right to decline insurance of a Borrower who is deemed uninsurable.

d. The insurance or change of insurance with respect to any indebtedness of a debtor required to submit further Evidence of Insurability shall take effect on the date such evidence is approved by Partner Insurance Company provided that the debtor is then Actively-At-Work and the date of release of the loan by the Policyholder should not exceed six [6] months from the date such evidence is approved; otherwise the debtor will be required to submit new Evidence of Insurability.

9.4 EFFECTIVE DATE OF BORROWER’S INSURANCE
Subject to the provisions of Evidence of Insurability, the effective date of a debtor’s insurance with respect to any indebtedness shall be the latest of:

a. the Effective Date of the group master policy contract;
b. the date of issue of the contract of indebtedness between the debtor and the creditor;
c. the date he meets the eligibility requirements. provided he is Actively-At-Work on such effective date; otherwise, his insurance shall take effect on the day he returns to Actively-At-Work status.

9.5 HEALTH QUESTIONNAIRE
The following questions must be answered by the person being insured.

a. b. c. d. Within the last two (2) years, have any of your applications for insurance been declined, postponed, withdrawn or accepted on a basis other than that applied for? Yes, or No? Have you had any symptoms of, sought advice for, or been treated for high blood pressure, stroke, heart trouble, diabetes, cancer or tumor, chest pain, viral immunodeficiency illness, bleeding from the bowel, or blood in your sputum, or has treatment for any of these been recommended by a physician or other practitioner? Yes, or No? Within the last five (5) years, have you been admitted or been advised to be admitted as an in-patient to a hospital or clinic EXCEPT for pregnancy, birth, routine health check-up, gall bladder/kidney stones, colds, fleu/influenza, gastroenteritis, upper and lower respiratory tract infections, hepatitis A, appendectomy, tonsillectomy, haemorrhoidectomy, cholecystectomy, and herniotomy? Yes, or No? Do you have any health symptoms or complaints for which a physician has not been consulted or treatment has not been received? For example: persistent fever, unexplained weight loss, loss of appetite, pain or swelling, etc.? Yes, or No?

9.6 DEATH BENEFIT
Upon receipt and approval of the Partner Insurance Company of the due proof/s that a Debtor died while covered under this Policy, Partner Insurance Company shall pay:

a. To the Policyholder – the Debtor’s Outstanding Indebtedness at time of death
b. To the beneficiary/ies – the excess, if any, of the Debtor’s Amount of Insurance over his Outstanding Indebtedness
The Outstanding Indebtedness in any contract of indebtedness shall also include any accrued interest charges and other finance charges to the Debtor due to default in payment of the installments on any such indebtedness. If no beneficiary is alive on the date of the Debtor’s death, or if the Debtor fails to designate a beneficiary, or if the designated beneficiary is disqualified by law, the excess of the amount of insurance over the outstanding balance in any contract of indebtedness, as stated above, shall be payable to the first surviving class of the following order of classes of beneficiaries deemed named by the Debtor. The deceased Debtor’s

a. widow or widower;
b. surviving legitimate and illegitimate children;
c. surviving parents;
d. surviving brothers and sisters of the full blood;
e. surviving brother and sister of the half blood; or
f. executors, administrators or assigns.

If two or more beneficiaries belong to the same class entitled to the excess of the Debtor’s Amount of Insurance over the outstanding balance in any contract of indebtedness, such beneficiaries shall share equally. Any minor’s share shall be paid in the manner prescribed by law. Any such payment shall discharge Sun Life Grepa Financial to the extent of the amount paid.

9.7 SUICIDE
Partner Insurance Company will not be liable if the Debtor dies by suicide within one (1) year from the effective date of his insurance or increase in amount of insurance (if any) or last reinstatement, whichever is later; provided, however, that suicide committed in the state of insanity will be compensable regardless of the date of commission. Where death benefit is not payable, Partner Insurance Company shall refund the premiums paid from the later of effective date or date of reinstatement of his insurance to date of death, to the estate of the Debtor.

9.6 BENEFICIARIES
All designations of beneficiaries are revocable unless otherwise stated by the Borrower on the form provided by Partner Insurance Company. The Borrower may change a beneficiary by filing a written notice with Partner Insurance Company on a form provided by Partner Insurance Company. The change shall then be effective as of the date it was signed, but it shall be subject to any action taken before it was received by Partner Insurance Company at its Office. If Partner Insurance Company has taken any action or made payment prior to receiving notice of that change, the change of beneficiary will not have an effect on any action or payment made by Partner Insurance Company to the beneficiary on record. In the designation of an irrevocable beneficiary, the exercise by the Borrower of his privilege to revoke or change a beneficiary shall be subject to the consent of any beneficiaries designated as irrevocable beneficiaries while they exist. The Borrower may appoint a minor or an incompetent as an irrevocable beneficiary, provided, that the rights of such minor or incompetent with respect to the insurance policy shall be exercised by a judicial guardian (unless otherwise allowed by law).

9.7 INCONTESTABILITY
In terms of the Death Benefit, no statement relating to the insurability of the Borrower may be used in contesting the validity of the Borrower’s insurance initially included hereunder after it has been in force for a period of one (1) whole year from the later of the effective date or from date of last reinstatement during the Borrower’s lifetime nor unless contained in a written instrument signed by him/her. Similarly, any increase hereof shall be incontestable, except for nonpayment of premiums, after being in force for a period of one (1) whole year from the effective date of the increase. Borrower has a continuing obligation to promptly disclose to SBF and its Partner Insurance Company any incorrect declaration, whether intentional or unintentional, within one (1) year from the effective date of Borrower’s insurance coverage or from last reinstatement. Failure to do so shall give the Partner Insurance Company the unequivocal right to contest claims, adjust or rescind the coverage in accordance with the policy contract even if the insured’s death occurs within one (1) year from the effective date of the insurance coverage or from last
reinstatement.

9.8 CLAIM PROCESS AND PROCEDURES
In case of death of the Borrower, a written notice of claim must be submitted to the Partner Insurance Company office within 30 days from date of death. Proof of claim must be submitted not later than 90 days from date of death. Failure to submit the written notice and proof of claim within the time limits shall not invalidate or reduce any claim if it shall be shown not to
have been reasonably possible and was submitted as soon as was reasonably possible. In the event death of the Borrower, the duly authorized representative is solely obliged to file a notice of claim with SBF Partner Insurance Company, in writing and with full details. The authorized representative must provide the Partner Insurance Company a satisfactory proof of the claim within ninety (90) days from the date notice is given. However, failure on the part of the authorized representative to submit written notice and proof of claim within such time shall not invalidate or reduce any claim if it shall be shown not to have been reasonably possible to give such notice within the required time and that proof was submitted as soon as was reasonably possible.In case of death of the Borrower, any of his/her surviving heirs or duly appointed administrator must file a notice of claim to the Partner Insurance Company within thirty (30) days from date of death. Proof of claim must be submitted not later than ninety (90) days from date of death. Failure to submit the written notice and proof of claim within the time limits shall not invalidate or reduce any claim if it shall be shown not to have been reasonably possible and was submitted as soon as was reasonably possible. Upon receipt and approval by the Partner Insurance Company – of the due proof/s that a Borrower died while covered under the Policy, the Partner Insurance Company shall pay: a. b. to SBF – the Borrower’s Outstanding Indebtedness at time of death: to the Borrower’s beneficiary/ies – the excess, if any, of the Borrower’s Amount of
Insurance over his Outstanding Indebtedness The Outstanding Indebtedness in any contract of indebtedness shall also include any accrued interest charges to the Borrower due to default in payment of the installments on any such indebtedness. If no beneficiary is alive on the date of the Borrower’s death, or if the Borrower fails to designate a beneficiary, or if the designated beneficiary is disqualified as ordered by law, the excess of the amount of insurance over the outstanding balance in any contract of indebtedness, as stated above, shall be payable to the first surviving class of the following order of classes of beneficiaries deemed named by the Borrower:

The deceased Borrower’s
a. widow or widower;
b. surviving legitimate and illegitimate children;
c. surviving parents;
d. surviving brothers and sisters of the full blood;
e. surviving brother and sister of the half blood; or
f. executors, administrators or assigns.

If two or more beneficiaries belong to the same class entitled to the excess of the Borrower’s Amount of Insurance over the outstanding balance in any contract of indebtedness, such beneficiaries shall share equally. Any minor’s share shall be paid in the manner prescribed by law. Any such payment shall discharge the Partner Insurance Company to the extent of the
amount paid. If the Partner Insurance Company receives a notice and proof of claim from SBF that the Borrower, while the benefit is in effect, suffers from death then upon approval of the claim and subject to the condition and provisions of the Credit Group Life benefit and the policy to which the aforesaid benefit is attached, the Partner Insurance Company shall, in lieu of all
obligations hereunder and in full discharge of all claims by the Borrower, pay to:

a. b. SBF – in one (1) lump sum, the Borrower’s outstanding indebtedness at the commencement of disability as reported by the Borrower to the Partner Insurance Company; To the Borrower – any excess of the Borrower ‘s amount of insurance over his/her
outstanding indebtedness.

9.9 PREMIUM RATES
The Partner Insurance Company reserves the right to establish new premium rates to take effect on any anniversary of the Partner Insurance Company’s Effective Date or whenever the terms and conditions of the insurance policy are changed. The Partner Insurance Company may charge a higher premium rate for a Borrower who is required to submit Evidence of
Insurability and is found to be a substandard risk. Notice of any new premium rates shall be given to SBF before the date specified by the Partner Insurance Company for the rates to become effective. A corresponding notice will immediately be provided by SBF in this regard, prior to implementation.

9.10 TERMINATION
The Credit Life Insurance Policy terminates on the earliest of: (a) the date the indebtedness is completely discharged by payment or by renewal or refinancing prior to the scheduled maturity dates; (b) the date the Borrower’s installment payments on the indebtedness becomes in default for more than three (3) months; (c) the date ownership of the indebtedness is transferred or assigned to a creditor other than the Borrower named herein; (d) the end of the period for which premiums are paid to Partner Insurance Company for the Borrower’s insurance on the indebtedness; (e) the date the Bank advises the Partner Insurance Company of the termination of the Borrower’s insurance on the indebtedness; or (f) the date the Borrower attains sixty-six (66) years of age.

9.11 COMMUNICATION AND DATA PRIVACY FOR PURPOSES OF INSURANCE

The Borrower:
(a) authorizes SBF and its Partner Insurance Company, including the latter’s employees, duly authorized representatives, related companies, third party service providers, and vendors to process and share his/her information with any authorized personnel of the party/ies involved or its partners/affiliates/service provider to (i) service the policy; (ii) process transactions and enforce the Credit Group Life Insurance contract; and (iii) pursue its legitimate and lawful rights and interests and other purposes allowed under laws and regulations, including, but not limited to, those relating to data privacy and anti-money laundering. The Borrower further agrees that his/her personal data shall be retained throughout the existence of the policy and/or until expiration of the retention limit set by laws and regulations from policy termination and the period set for destruction or disposal of records; and (b) confirms that by accepting the terms and conditions, he/she has read, understood, and agrees with the health declarations, health questionnaire and authorizations above-mentioned.

9.12 MISCELLANEOUS PROVISIONS ON INSURANCE
If a Borrower dies by suicide less than one (1) year after the effective date or date of reinstatement of his/her insurance, the pertinent provisions of the Insurance Code shall apply. Where death benefit is not payable, the Partner Insurance Company shall refund all premiums paid from the later of the effective date or date of reinstatement of his insurance to date of his death, to the estate of the Borrower. With respect to the provisions of these Terms and Conditions and in particular, the Borrower’s health declaration thereof, each Borrower shall hold the Partner Insurance Company, its Affiliates, and their respective directors, officers, employees, legal representatives, and agents and assignees, free and harmless against loss and damage from any claims and/or actions made by any third person including the parties to the Partner Insurance Company policy or their representatives in relation to the processing of the Borrower’s application form, or from any action taken or not taken by the Partner Insurance Company or its Affiliates on the basis of the remedies and authorities hereunder. o I agree, as a borrower, that throughout the entire term of the loan, SBF shall keep me insured with its Partner Insurance Company. I understand that in lieu of the insurance
product provided by SBF’s Partner Insurance Company, I have the option to choose another provider of said product that shall carry all necessary and applicable risk covers and clauses subject to reasonable standards that may be set by SBF, in which case I shall reach out to SBF through its official contact number. Further, I understand that if I choose the insurance offered by the SBF, the premium shall be due and demandable, and payment thereof shall be amortized in accordance with SBF’s policy. In the event that my insurance coverage is terminated in accordance with the Termination of Debtor’s Insurance provision of the policy contract, I understand and agree that I shall not be entitled to any premium refund, however, in case of deficiency, I am liable and obligated to pay the amount. o I agree to endorse the policy to SBF and assign or appoint SBF to be my attorney-in-fact to
immediately file the proper loss/accident/incident or equivalent report and for purposes of claiming the benefits or proceeds of the said insurance. Further, I authorize SBF as my attorney-in-fact to file and claim documents with any government agencies, institution, bureau or offices necessary for the claim of proceeds or benefits and should there be a need to name a beneficiary, I hereby agree to name SBF as the assured or loss payee. Furthermore, I authorize SBF to apply the benefits or proceeds of the insurance to the outstanding balance of my loan. I commit that in any instance that an original copy of the insurance policy shall be in my possession I shall forward the same to SBF for its records and for purposes as it may deem fit. o Lastly, should there be an instance where I or my heir or estate receive any amount paid under the insurance directly from the insurer, I authorize SBF to collect the proceeds from my heir or estate without the need of settlement of estate. For more details about Credit Life Insurance, please visit our website at https://www.sbfinance.com.ph/sunlife-insurance-faq-esalad/ o Economic Provision.
I agree that SBF may amend the stipulated terms and conditions including but not limited to the interest rate and penalty fee subject to upward or downward adjustment to be determined by SBF, which determination shall be final and conclusive provided that notice shall given to me either through publication in the website of SBF, SMS or email. o I agree that SBF may, without prior notice, may unilaterally assign, transfer, pledge or hypothecate the financial asset and its rights in whole and in part created by the Promissory Note (PN) including the property subject of the said PN, if any. I further agree to pay the assignee, buyer/owner or pledgee, honor its rights created by the PN and that SBF may transfer all documents including those containing personal information without breach of my consent under the Data Privacy Act.

10. PAYMENTS. Payments of interest and Employee Loan amount on the defined due date, and shall be subject to the following:

a. Amortization due will be deducted by the member of the group from my salary every due date and remit the same to SBF.

b. In cases where I will receive insufficient or no credits from my employer on salary crediting day, I shall be obliged to pay over the counter in any SBC Branch and/or other payment partners, on or before my payment due date, the remaining unpaid amount in order to meet the amount due. My failure to do so shall allow SBF to impose the applicable penalty charges. I hereby also authorize my employer to deduct the remaining unpaid amount, plus charges, in my following salary crediting day.

c. d. Saturday, Sunday, and Holiday – whenever any payment to be made hereunder falls due on a Saturday, Sunday, or public holiday under the law of the Republic of the Philippines, such payment may be made on the next succeeding banking day.
I likewise assign, transfer, convey, and set over unto SBF, its successors and/or assigns, my salaries and wages including the proceeds of my salary that may be credited to my payroll account, and all benefits arising from or accruing to me pursuant to my employment, including my separation pay, retirement benefit, convertible vacation leaves, and other benefits that may be collected from my employer for the satisfaction of my obligations to SBF.

11. APPLICATION OF PAYMENT. Any and all payments for my account under Employee Loan shall be applied on the following items in the order they are listed:

a. Late payment fees
b. Interest
c. Principal

12. EVENTS OF DEFAULT. I shall be considered in default in the event that:
a. I violate any of the terms and conditions of this credit agreement.
b. Any interest or installment is not paid on due date.
c. I am in default in respect of any other obligation with SBF or the Group which may now be existing or may subsequently be granted to me by SBF or the Group.
d. Any creditor tries by legal process to attach or levy on my money or any property with SBF.
e. I apply for voluntary or involuntary relief under bankruptcy or insolvency laws.
f. SBF believes on reasonable ground that it was induced by fraudulent misrepresentation on my part to approve my subscription to this program and my succeeding employee loan requests.

Upon my default as herein defined, my account shall be considered a “delinquent account” for purposes of the late payment charges under the appropriate section herein, and SBF is hereby authorized, at its option, to suspend or cancel my subscription to the program, and to disallow any further Employee Loan requests. The amount certified by SBF as the amount outstanding shall be prima facie evidence of the amount due from me as at the date thereof.

13. EFFECTS OF DEFAULT. If I am on default, such default shall have the following effects, alternative, concurrent, and cumulative with each other: a. b. c. d. e. f. All my outstanding loan obligations with SBF shall automatically become due and payable. I am required to repay the loan outstanding balance in full, unless I opt to repay in installments, subject to negotiation with collections. A higher interest rate may be applied, comparable to the market rate for personal loan. I shall pay SBF, in addition to the stipulated interest, a late payment penalty fee which shall be charged every month on all past due amount until fully paid. I shall also pay, as and for attorney’s fees, a sum equivalent to twenty five percent (25%) of the total amount due under this Note but in no case less than TEN THOUSAND PESOS (PHP 10,000.00), plus expenses and costs of collection, in case this Note is placed in the hands of an attorney for collection. SBF shall be entitled to apply in payment of the outstanding obligations on any and all my moneys/properties, which for any reason, are presently or which may hereafter come into the possession of SBF or any of the latter’s subsidiaries or affiliates. SBF reserves the right to endorse the account to a collection agency of its choosing in the event of default, provided, that in case of such endorsement, SBF shall inform me in writing at the address appearing in its records, at least seven (7) days prior to the actual endorsement. I hereby agrees that SBF shall have the right to exercise, alternatively, concurrently, and cumulatively, all other rights and remedies now or hereafter available to it under the
applicable laws.

14. COOLING-OFF. I may request the cancellation of loan within the cooling-off period (COP) of three (3) days without paying pre-termination penalty fees; however, cancellation, processing fees, and accrued interests, if applicable, shall be paid by the borrower. If I submitted the loan cancellation request after the COP, the Borrower is no longer eligible to avail cooling-off rights; thus, cancellation and pre-termination charges shall apply. I must notify the SBF within the COP and express in writing the loan cancellation request. In the event the loan has been booked or disbursed after receiving the loan cancellation request within the COP, the following conditions shall apply:

a. Borrower must FULLY PAY the amount stated on the SOA (including disbursed loan, accrued interest, cancellation fees, documentary stamp tax, notarial fees, other taxes, and processing fees, where applicable) within three (3) banking days after submitting the loan cancellation request.

b. If the Borrower fails to FULLY PAY within the prescribed period, standard loan cancellation and pre-termination charges shall apply.

15. PREPAYMENT FEE. The period given forms part of the consideration of my loan, and should I pay prior to maturity date, then a prepayment fee equivalent to five percent (5%) of the total outstanding balance shall be imposed by SBF.

16. CANCELLATION/TERMINATION. Credit shall be provided by SBF under the Employee Loan Program until SBF cancels, closes, or freezes operation of the said Program in accordance with these terms and conditions. I hereby agree to still authorize SBF to continue to collect loan payment from my employer such amount as may be necessary from time to time as payment for
all outstanding obligations arising from this program in case SBF terminates or cancels the Program.

17. NO IMPLIED WAIVERS. No failure or delay on the part of SBF in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any other right or power hereunder. No modification or waiver or any provision of the Credit Instruments, and no consent to any departure therefrom by me, shall in any event be effective unless the
same be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand in similar or other circumstances.

18. RIGHT TO ASSIGN. SBF may assign, transfer, and convey any or all of its rights and interest over my Employee Loan loan and the Collateral, if any, without my consent as Borrower.

19. BANK RECORDS AS EVIDENCE. The books of SBF shall be final and conclusive evidence concerning the amount due and owing to it from the Borrower/s under my Employee Loan, in the absence of manifest error. Any complaint regarding the loan may be communicated with our Customer Contact Hotline at (+632) 8887-9188. SBF is regulated by the Bangko Sentral ng Pilipinas with the telephone number of (+632) 8708-7087, and email address of [email protected]

20. SEPARABILITY CLAUSE. If any of these provisions are declared invalid or illegal, such invalidity or illegality shall not in any way affect the remaining provisions hereof or any vested right which may have already accrued in favor of SBF.

21. DISCLOSURE, USE AND RETENTION OF INFORMATION. I willingly and voluntarily allow SBF to share information about me within the Group and its partners or third-party service providers for purposes of processing my application, collection of payment and other activities that are related therein. Information that I provided may also be used to develop offerings from Group and its partners or third party service providers and that I may receive from time to time through SBF’s communication channels. I agree that the information shall be retained by SBF subject SBF’s data retention policy and laws, rules, and regulations issued by the appropriate government agency or institution, whether my application is approved or not

22. PROMOTIONAL OFFERS. On any occasion, SBF may inform me about SBF’s promotional offers through mail, e-mail, fax, SMS, SBF Mobile Application, or by telephone. SBF may also allow the Group including, its branches, subsidiaries, affiliates agents, agents, and representatives and third parties selected by any of them, and certain companies to offer specially selected products and services to me through mail, fax, SMS, telephone, or via the SBF Mobile Application. For this purpose, SBF may transfer and disclose selected customer information to the Group, its branches, subsidiaries, affiliates, agents, and representatives and third parties selected by any of them and certain companies.

23. AMENDMENT. Subscription to this program is granted in the light of the prevailing economic/regulatory environment and other circumstances considered by SBF in approving the subscription. In case of any change in such circumstances which SBF deems material or in the event of any change in SBF’s credit policy, SBF reserves the right to amend any of the terms and
conditions governing this program subject to my conformity. If the proposed amendment is not acceptable to me, I shall be obliged to prepay the entire obligation under this program upon demand by SBF and the Group.

24. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the existing and pertinent laws of the Republic of the Philippines, the rules, and regulations of the Bangko Sentral ng Pilipinas, the Philippine Clearing House Corporation (PCHC), Bankers Association of the Philippines (BAP), and other appropriate government agencies.

25. UNDERTAKING
The following undertakings reiterates, supports and supplements the above provisions. In case of conflict between the above provisions and the undertakings below, such conflict shall be resolved in favor of SBF.

1. 2. I hereby certify that all information herein are true and correct based on my own knowledge. I hereby confirm that I am personally liable for all the information I supplied to avail my loan. Any information given by me or other persons I authorized, which is not true or accurate, will automatically cause the SBF to reject my loan or cancel its approval. I hereby willingly, voluntarily, and with full knowledge of my right under the law, waive the right to confidentiality of information and authorize SBF to obtain and/or disclose, divulge, and reveal any kind information relating to my account/s and/or transactions with SBF, its subsidiaries and affiliates, including events of default, for the purpose of, among others, client evaluation and profiling, credit reporting or verification, and recovery of the obligation due and payable to SBF under the terms and conditions of this agreement.

3. In view of the foregoing, SBF may disclose, divulge, and reveal the aforementioned information to third parties, including but not limited to my employer, Security Bank Corporation and its affiliates, subsidiaries, agents or service providers, the Bankers’ Association of the Philippines– Credit Bureau (BAP – CB), or to any similar central monitoring entity or recipients as provided for by law and required by competent authority.

4. I further authorize SBF to process, transfer, share, and disclose any information relating to my credit data, telecom, or mobile usage data or “telco score” to credit info data providers or credit scoring service providers (i.e. Globe Telecom, Inc., Smart Telecommunications, Inc., and other telecommunications service provider), for the purpose of credit verification, collection, credit review, credit scoring/analytics, and statistical and risk analysis.

5. I hereby authorize SBF to have my account/s used for the purpose of profiling, credit evaluation/reference checks, audit and account balance confirmation.

6. I hereby authorize SBF to use my salary data information as basis for computation of my Employee Loan Limit

7. I hold SBF free and harmless from any and all liabilities, claims, and demands of whatever kind or nature in connection with or arising from the aforementioned disclosure or reporting.

8. I further authorize SBF to deduct from my loan proceeds all fees including, but not limited to, processing fees, documentary stamp tax (if applicable), notarial fees (if applicable), and interest accruals (if applicable) should the first due date be over 30 days from the release of my loan and other related charges.

9. Subject to my loan availment, I hereby authorize my Company/Employer to deduct the said amount from my salary and other remunerations, and to remit the same to SBF on or before the due date and every month thereafter. Whenever applicable, I further authorize my Company/Employer to deduct from my salary late penalties, fees, interest charges, costs, and principal amount due to effectively bring my loan to current status.

10. I hereby confirm and acknowledge that in the event of the occurrence of any circumstance that would cause my separation from employment either by resignation, termination, retirement, or death, I hereby authorize my Company/Employer to notify SBF of such fact which will likewise render my loan automatically due and demandable. Consequently, I further authorize SBF or my Company/Employer to deduct from my separation pay, or any remuneration or other benefits of whatever kind or nature due to me such amount as SBF may certify to be due and owing to SBF for the full settlement of the loan and remit the same to SBF. In cases where my separation pay, remuneration, or other benefits from my employer is not enough to cover in full my total
outstanding balance from the date my employer reports my resignation to SBF, I understand that SBF has the right to automatically convert my outstanding balance to personal loan, while my employer is processing my last pay remittance to SBF, and a higher interest rate may be applied depending on the market rate. An official advisory letter from SBF containing the details of my converted loan shall be sent to my registered email address, and/or via SMS thru my registere mobile number.
I further confirm that my separation pay that my employer will remit to SBF shall be applied to my converted loan.

11. I also legally bind myself to the Terms and Conditions of the Loan Program, Promissory Note (if applicable), Disclosure Statement (if applicable), and other relevant documents that I shall execute in favor of SBF.

12. Should my application be denied, SBF has no obligation on its part to furnish the reason for the loan rejection.

13. I have read and accepted SBF’s privacy notice (https://www.sbfinance.com.ph/security- information/) and understand that the SBF recognizes my rights as data subject under the Data Privacy Act of 2012. I hereby give consent to the collection, processing, use, sharing, and retention of my personal data for purposes of obtaining the loan and all other ancillary services necessary for the maintenance of my account/s and collection of payment. Subject to remain in effect or five (5) years after account closure, I hereby give my consent for SBF to share and process my personal information, and any other information relating to my account/s and/or transactions to any member of the SBC Group (Security Bank Corporation and its affiliates and subsidiaries reported as part of SBC’s conglomerate map group structure as defined under BSP Circular 749), and Bancassurance companies or their authorized Service Providers and representatives, for purposes of cross-selling products and services, profiling and credit evaluation/reference checks, audit and account balance confirmation, and allow them to contact me for this purpose (i.e. by email, telephone, text, etc.) or in case of audit where my account/s is/are chosen as sample for account balance confirmation.