Disclosure Statement on Loan/Credit Transaction

March 30, 2001 SEC-CFD MEMORANDUM CIRCULAR NO. 03-01 TO : Financing Companies SUBJECT : Disclosure Statement on Loan/Credit Transaction In order to regulate the activities of financing and leasing companies and to place their operations on a sound, competitive and stable basis as well as to curtail or prevent acts or practices prejudicial to the public interest by a full disclosure of the true cost of credit to the borrower or user, the Commission, by virtue of the powers vested upon it by existing laws, hereby promulgates the following: A. A "Disclosure Statement on Loan/Credit Transaction (sample form attached) is hereby prescribed for use by Financing Companies (FCs). B. Such Disclosure Statement, in duplicate, shall be duly signed by the borrower and by the duly authorized signatory/ries of the Financing Companies prior to the release of his loan. A copy shall be kept in the company's premises which shall be open to inspection by the SEC or its duly authorized representative/s at any time during office hours and the other copy shall be given to such borrower. Non-compliance with this Circular shall subject the creditor concerned to the following penalties: a) First Offense Basic fine of P20,000.00 and P100.00 for each day of continuing violation b) Second Offense Basic fine of P25,000.00 and P100.00 for each day of continuing violation c) Third Offense Basic fine of P30,000.00 and P100.00 for each day of continuing violation d) Fourth Offense Suspension/revocation of the certificate of authority to operate as a financing company. This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation. AcSHCD EDSA, Mandaluyong City, Metro Manila March 30, 2001. (SGD.) LILIA R. BAUTISTA Chairman _____________________ Business Name of Creditor DISCLOSURE STATEMENT OF LOAN/CREDIT TRANSACTION (SINGLE PAYMENT OR INSTALLMENT PLAN) Name of Borrower _____________________ Address _____________________________ 1. Cash/Purchase price ________________ or Net Proceeds of Loan (Item Purchased) ______________ ______________ 2. Less: Downpayment and/or Trade-in Value (Not applicable for loan transaction) ______________ 3. Unpaid Balance of Cash/Purchased Price or Net Proceeds of Loan 4. Non-Finance Charges [Advanced by Seller/Creditor]: a. Insurance Premium P_____________ b. Taxes ______________ c. Registration Fees ______________ d. Documentary/Science Stamps ______________ e. Notarial Fees ______________ f. Others: ______________ ______________ ______________ ______________ ______________ ______________ ______________ Total Non-Finance Charges ______________ 5. Amount to be Financed (Items 3/4) 6. Finance Charges a. Interest ______% p.a. from _____ to _____P__________ [ ] Simple [ ] Monthly [ ] Compound [ ] Quarterly [ ] Semi-Annual [ ] Annual b. Discounts ____________ c. Service/Handling Charges ____________ d. Collection Charges ____________ e. Credit Investigation Fees ____________ f. Appraisal Fees ____________ g. Attorney's/Legal Fees ____________ h. Other charges incidental to the extension of credit (specify): ______________ ______________ ______________ ______________ ______________ ______________ Total Finance Charges P______________ 7. Percentage of Finance Charges to Total Amount Financed ___________% 8. Effective Interest Rate (Method of computation attached) ___________% 9. Payment a. Single Payment due ___________ P______________ (Date) b. Total Installment Payments (Payable in ____ weeks/months @ P__________) P______________ (No. of Payments) 10. Additional Charges in case certain stipulations in the contract are not met by the debtor: Nature Rate Amount __________________ ___________________ __________________ __________________ ___________________ __________________ __________________ ___________________ __________________ Certified Correct ____________________________ (Signature of Creditor/Authorized Representative Over Printed Name) __________________ Position I acknowledge receipt of a copy of this statement prior to the consummation of the credit transaction and that I understand and fully agree to the terms and conditions thereof: ________________________ (Signature of Buyer/Borrower Over Printed Name) Date __________________