Addendum To Promissory Note Template for Philippines

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Addendum To Promissory Note

"I need an Addendum to Promissory Note to extend the maturity date of our existing PHP 5 million promissory note from March 15, 2025, to September 15, 2025, and adjust the interest rate from 6% to 7.5% per annum."

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What is a Addendum To Promissory Note?

An Addendum to Promissory Note is utilized when parties need to modify specific terms of an existing promissory note without creating an entirely new agreement. This document type is particularly important in the Philippine legal context, where amendments to financial instruments must comply with strict regulatory requirements, including those set by the Bangko Sentral ng Pilipinas and the Civil Code of the Philippines. The addendum typically includes details of the original note, specific modifications being made, and confirmations that other terms remain unchanged. It requires proper execution and notarization under Philippine law to be legally binding. Common scenarios for using this document include extending payment terms, adjusting interest rates, modifying security arrangements, or accommodating debt restructuring needs.

What sections should be included in a Addendum To Promissory Note?

1. Parties: Identification of the parties to the original promissory note (maker/promisor and payee/promisee)

2. Background: Reference to the original promissory note including its date, principal amount, and any previous modifications

3. Definitions: Key terms used in the addendum, including reference to definitions from the original note

4. Amendments: Specific modifications to the original promissory note, clearly stating the original terms and new terms

5. Effect on Original Note: Statement that all other terms of the original promissory note remain in full force and effect

6. Governing Law: Confirmation that Philippine law governs the addendum

7. Execution: Signature blocks and notary requirements under Philippine law

What sections are optional to include in a Addendum To Promissory Note?

1. Recitals of Additional Circumstances: Used when there are specific circumstances or events necessitating the modification

2. Representations and Warranties: Include when new representations are needed due to material changes in terms

3. Security Provisions: Required if the modification affects any collateral or security arrangements

4. Tax Provisions: Include when modifications affect tax implications or responsibilities

5. Consent of Guarantors: Required if the original note has guarantors who need to consent to the modifications

6. Registration Requirements: Include if modifications require registration with government authorities

What schedules should be included in a Addendum To Promissory Note?

1. Schedule of Modified Payment Terms: Detailed breakdown of any modified payment schedules or amounts

2. Schedule of Additional Security: Description of any new or modified security arrangements

3. Appendix A - Copy of Original Note: Attached copy of the original promissory note being modified

4. Appendix B - Consent Documents: Any required third-party consents or approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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