Lending Guidelines for Motorcycle Loan for AGRIKULTO INC.

Farm Assistants
1. Eligibility:
AGRIKULTO INC. farm assistants shall be eligible to apply for motorcycle provided that:
He is at least TWO (2) years in service as regular employee of AGRIKULTO INC.
He agrees to fulfill all loan requirements and execute all supporting papers and/or documents to
the satisfaction of the chattel mortgage.
2. Loan Limits
The company shall grant the loan to cover 100 percent cost of the motorcycle provided that the
farm assistant shall use the said motorcycle to be accepted as collateral on first mortgage, that he
may put up by way of security.
The loan shall not cover incidental expenses, such as documentation fees and others. All these
expenses shall be for the borrower’s personal account.
3. Condition of Vehicle
Loans shall be allowed for the purchase of new motorcycles only. In all such cases, the employee
must also show and warrant that all taxes, fees, and duties on the motorcycles have all been paid
and that there are no obstacles to the transfer of ownership to his name.
The farm assistant shall not use the motorcycle as a public utility vehicle and shall be responsible
for the maintenance of the same to ensure that it is in good running condition.
4. Mode of Payment

a. The total cost of the motorcycle is payable in 36 equal monthly installments without
interest.
b. The monthly amortization payment will be collected by the company through payroll
deduction. For this purpose, the farm assistant must give written authorization/consent to be
deduced in the monthly payroll, or every 15th and 30th of each month.
c. At any given time within the three (3)-year period, pre-payment of the unpaid balance of
the loan may be arranged with the Accounting Department.
5. Mortgage
As security for the loan, the borrower shall execute the following:
a. For employed members, authorization/consent form for the two (2) deductions for each
month for a three-year period.

b. Loan agreement with Motorcycle Loan in favor of the company.

The mortgage registration shall be arranged by the company and all cost incurred shall be for the
borrower’s account. All motorcycle documents required from the borrower must be submitted and
duly accomplished before release of the loan.
This mortgage shall constitute a lien on the motorcycle and shall be cancelled only upon full
payment of the loan. In case of default, the mortgage shall be foreclosed by the company and the
proceeds applied to the outstanding loan balance.
Original copy of the Official Receipt and Certificate of Registration and all other documents duly
accomplished must be submitted before release of the loan.
In case of default, the Company has the right to sell the property and the proceeds shall be applied
to the outstanding loan balance.
6. Insurance
The borrower shall be obliged to insure the vehicle in favor of the company for the amount
equivalent to the principal amount of loan against:
Bodily injury
Property Damage
Damage to Vehicle
Theft
The copy of the annual insurance policy duly endorsed in favor of the company shall be submitted
by the borrower without fail, else the default provision of the mortgage document shall be effected.
7. On Leaving the Company Service
In case of separation from the service either by resignation, discharge, death, or for any other cause,
the full balance of the loan shall become immediately due and payable.
The borrower or his heirs should, therefore, pay the outstanding balance to the company;
otherwise, the unit shall be subject to sale.
Default in Payment
In case of default, the following procedures shall be undertaken:
1 month default – demand letter
2 months default – 2nd demand letter
3 months default – 3rd demand letter
4 months default – repossession and sale of motorcycle and execute the corresponding deed of sale
and such other documents necessary to transfer ownership over the aforesaid motorcycle in favor
of any buyer.