Credit Card Promissory Note Template for Philippines

The Credit Card Promissory Note is commonly used in the Philippine banking sector when a credit card holder needs to convert their outstanding credit card balance into a fixed repayment plan. This document becomes necessary when cardholders require more structured payment terms or when banks need to formalize credit card debt obligations. The promissory note must comply with Philippine banking regulations, particularly BSP Circular No. 1098 and the Truth in Lending Act, requiring specific disclosures about interest rates, payment terms, and total cost of credit. It serves as a crucial tool for both debt restructuring and risk management, providing clear documentation of the debt obligation and repayment terms. The document is particularly relevant in cases of debt consolidation, financial hardship arrangements, or when converting revolving credit card debt into fixed-term obligations.

1. Parties: Identification of the Credit Card Issuer/Bank and the Cardholder/Debtor with complete details

2. Background: Brief context of the credit card debt being converted to a promissory note

3. Definitions: Key terms used in the document including 'Principal Sum', 'Interest Rate', 'Payment Terms', etc.

4. Acknowledgment of Debt: Clear statement of the total credit card debt being converted to a promissory note

5. Promise to Pay: Explicit promise to pay the debt with specified terms and conditions

6. Interest Rate: Details of interest rate, calculation method, and compliance with BSP guidelines

7. Payment Terms: Schedule of payments, including amount, frequency, and due dates

8. Default Provisions: Consequences of missing payments or defaulting on the note

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

10. Governing Law: Specification of Philippine law as governing law and jurisdiction

11. Execution: Signature blocks and execution requirements