Annex A — Credit Line Agreement

Rural Bank of Kibawe (Bukidnon), Inc.

This Credit Line Agreement ("Agreement") forms part of and is governed by the Rural Bank of Kibawe (Bukidnon), Inc. General Terms and Conditions.

 

1.  Definitions

In this Agreement, the following terms have the meanings set out below. Capitalized terms not defined here have the meanings given in the General Terms and Conditions.

“Credit Limit” means the maximum aggregate Utilized Amount that may be outstanding at any time, as notified to the Borrower by the Bank and as may be revised from time to time.

“Utilized Amount” means the aggregate outstanding principal balance of all Draw-downs made by the Client under this Agreement that remain unpaid at any given time, excluding accrued interest, fees, and other charges. Interest, fees, and penalties are tracked and disclosed separately in the App and each Disclosure Statement.

“Available Credit” means, at any time, the Credit Limit minus the Utilized Amount.

“Draw-down” means a disbursement of funds by the Bank to the Borrower under this Agreement.

“Credit Facility Period” means the period during which the Client is entitled to make Draw-downs under this Agreement, commencing on the Effective Date and expiring on the date specified in the Disclosure Statement, as may be renewed or extended by the Bank in writing. The expiry of the Credit Facility Period does not discharge the Client's obligation to repay any outstanding Utilized Amount.

“Credit Facility Approval Date” means the date on which the Bank approves and communicates to the Client the grant of the revolving credit facility under this Agreement, as specified in the Disclosure Statement. The Credit Facility Period commences on this date unless otherwise stated.

“Draw-down Date” means, in respect of each Draw-down, the date on which the Bank disburses the requested funds to the Client's designated account or payment channel. Interest on each Draw-down shall accrue from the Draw-down Date, and the applicable Loan Term shall be calculated from such date. For the avoidance of doubt, the Draw-down Date shall be the actual date of fund transfer as recorded by the Bank.

“Loan Term” means, in respect of each individual Draw-down, the period from the date of disbursement of that Draw-down to its scheduled repayment date, as specified in the applicable Billing Statement or Draw-down confirmation issued by the Bank. Each Draw-down may have a different Loan Term, and the expiry of a Loan Term does not affect the Client's right to make further Draw-downs during the Credit Facility Period, subject to Available Credit and the absence of any event of default.

 

2.  Credit Facility

2.1 Subject to the terms of this Agreement and the satisfaction of all conditions, the Bank grants to the Borrower a revolving credit line up to the Credit Limit as specified in the  Disclosure Statement (Annex B).

2.2 The credit facility is revolving in nature: repayments made by the Borrower restore Available Credit by the amount repaid (net of fees and charges applied), enabling the Borrower to make further Draw-downs up to the Credit Limit during the Facility Period.

2.3 The Bank may, at its sole discretion, review and adjust the Credit Limit at any time, subject to prior notice to the Borrower where required by law. A Credit Limit reduction does not affect repayment obligations for the existing Utilized Amount.

3.  Draw-down Procedure

3.1 The Borrower may request a Draw-down through the Platform, subject to: (a) the requested amount not exceeding the Available Credit and (b) compliance with the Bank's internal verification procedures.

3.2 The Bank shall process approved Draw-down requests within the time disclosed on the Platform, subject to system availability and regulatory requirements.

3.3 Each Draw-down constitutes a separate loan under this revolving facility and is subject to the interest rates and fees disclosed in the Credit Line Disclosure Statement.

4.  Interest and Charges

4.1 Interest shall accrue daily on the Utilized Amount at the rate specified in the Credit Line Disclosure Statement, from the date of each Draw-down until full repayment.

4.2 All fees and charges applicable to the credit facility are set out in the Credit Line Disclosure Statement. The Bank shall disclose the Effective Interest Rate (EIR) inclusive of all mandatory charges in accordance with the Truth in Lending Act and BSP MORB.

4.3 Interest and fees shall be reflected in each Billing Statement and debited to the Borrower's credit account on the statement date.

5.  Repayment

5.1 The Bank shall issue a Billing Statement to the Borrower on each statement cut-off date showing the Utilized Amount, Available Credit, transactions, interest, fees, Minimum Payment due, and Payment Due Date.

5.2 The Borrower shall pay at least the Minimum Payment by the Payment Due Date. Failure to do so constitutes a default and will result in late payment charges as disclosed.

5.3 The Borrower may at any time pay more than the Minimum Payment or the full Utilized Amount. Full payment of the outstanding balance before the due date avoids further interest accrual on the paid amounts.

5.4 Payments shall be applied in the following order: (a) fees and penalties; (b) accrued interest; (c) oldest principal Draw-downs first, unless otherwise required by applicable regulation.

6.  Billing Statements and Disputes

6.1 The Borrower shall review each Billing Statement upon receipt. Any errors or discrepancies must be reported to the Bank within thirty (30) calendar days from the statement date, in accordance with Republic Act No. 10870 applied by analogy to this revolving credit facility.

6.2 The Bank shall investigate reported disputes within ten (10) banking days of receipt of notification and shall correct any confirmed errors in the subsequent Billing Statement.

7.  Events of Default

7.1 Each of the following constitutes an event of default under this Agreement:

• failure to pay the Minimum Payment by the Payment Due Date;
• material misrepresentation or provision of false information to the Bank;
• insolvency, bankruptcy, or the commencement of any insolvency proceedings;
• breach of any material term of this Agreement or the General Terms and Conditions; or
• any act or omission that, in the Bank's reasonable judgment, materially impairs the Borrower's ability to repay the Utilized Amount.

Upon an event of default, the Bank may: (a) suspend Draw-down rights; (b) declare the entire Utilized Amount immediately due and payable; (c) impose default interest and penalty charges as disclosed; and (d) pursue all available legal remedies.

8.  Credit Reporting

8.1 The Bank shall report the Borrower's credit account status, Utilized Amount, and payment history to the Credit Information Corporation (CIC) and other authorized credit bureaus as required by Republic Act No. 9510 (Credit Information System Act). The Borrower consents to such reporting and acknowledges that delinquency will be reflected in the Borrower's credit profile.

9.  Facility Renewal and Termination

9.1 The credit facility shall be subject to annual review. The Bank may renew, modify, or terminate the facility upon notice to the Borrower at least thirty (30) calendar days prior to the Expiry Date, or such shorter period as may be permitted by applicable regulation.

9.2 The Borrower may terminate the credit facility at any time by notifying the Bank through the Platform or in writing, provided all outstanding Utilized Amounts have been repaid in full.

9.3 Termination of the facility does not affect obligations accrued prior to termination.

10.  Governing Terms

This Credit Line Agreement shall be read together with and governed by the RBK General Terms and Conditions. In the event of any inconsistency between this Agreement and the General Terms and Conditions, the terms of this Agreement shall prevail in respect of the Credit Line product.