Document background
The Promissory Note Secured By Deed Of Trust is a crucial financing instrument in the Philippine legal system, commonly used when a borrower needs to obtain funding while offering real property as security. This document serves a dual purpose: it evidences the debt obligation through the promissory note component and creates a security interest through the deed of trust. It's particularly useful in situations where traditional mortgage arrangements may not be preferred or practical. The document must comply with Philippine banking regulations, property laws, and registration requirements. It typically includes detailed payment terms, property descriptions, trustee powers, default provisions, and foreclosure procedures. This type of agreement provides lenders with strong security while offering borrowers a structured repayment framework, making it popular in both commercial and private lending scenarios.
