LOAN AGREEMENT

No. [*] 

This Loan Agreement (the “Agreement”) is executed on the [day] of [Month] _____, between: 

[Name of Borrower], a citizen of the Philippines, of legal age, with residence at [address], and Government ID Type [ID Type] with Number [ID number] (“Borrower”);

- and – 

LIGHTNING FINANCING COMPANY INC., a corporation duly established under the laws of the Republic of the Philippines ("Lender");

- and –

WEFUND LENDING CORP., a corporation duly established under the laws of the Republic of the Philippines (“Facility Manager”).

The Lender and Borrower are hereinafter collectively referred to as the “Parties” or individually as a “Party”.

1.RECITALS

1. The Facility Manager has the right and authority to operate Juanhand.com and/or Juanhand mobile application (“Juanhand”).

2. The Borrower is applying for a loan (“Loan”) through Juanhand for his or her general personal use and agrees.   

The Lender shall finance the Loan through Juanhand.

3. The Lender may authorize the Facility Manager to act on its behalf as the primary Collection Agent and to appoint Service Providers on its behalf in order to facilitate payment reminders. The Facilities Manager shall likewise be authorized to collect the payments in connection with this Loan Agreement..

4. The Borrower understands that the approval and processing of the Loan is subject to the submission by the Borrower of documents required by Lender and the Facility Manager, its credit approval processes and guidelines, and the final decision of Lender and the Facility Manager. The Loan shall be payable in lump sum or in installments with an interest rate agreed upon by the Borrower and Lender as provided in this Agreement. 

5. The Borrower shall carefully read, acknowledge, and agree to the clauses herein before proceeding with the Loan transaction through Juanhand. To protect the personal information of the Borrower, his or her identity and other personal information may be partially concealed in the Agreement that is made available on Juanhand. Such partial concealment of personal information of the Borrower shall not affect the validity of the Agreement.

2.DEFINITIONS

1. “Amounts Repayable”means all amounts to be repaid by the Borrower including the Principal Loan Amount, interest, Overdue Interest, and Service Fees incurred by the Lender in connection with the fulfillment of the Loan.

2. “Collection/Late Payment Fee” means the fee incurred by the Lender for collecting and recovering overdue amounts in case of Overdue Payment by the Borrower. 

3. “Confidential Information” means anydata, information or material disclosed by one Party in writing, visually, orally or in electronic form to the other Party under this Agreement to which the public does not have general access. 

4. “Disbursed Loan Amount”means money the Lender transfers to the Borrower through his or her elected disbursement channel.

5. “Disbursement Channel” means the designated banks, applications and/or online wallets elected by the Borrower as his or her means to receive the loan amount. 

6. “Due Date” means the date when the entire Loan must be paid and settled in full by the Borrower.

7. “Event of Default” means an event, as enumerated in this Agreement, which would have an effect of terminating this Agreement.

8. “Interest Commencement Date” means the date on which the loan commences.

9. “Installment Amount” means an amount less than the Loan Amount, plus interest payment and Service Fee which are paid on a periodic basis. 

10. “Juanhand” refers to com and/or the Juanhand mobile application.

11. “Loan Drawdown Date” means the date on which the Loan commences, which is adjusted based on the actual date of drawdown, marked by the actual wiring or transfer of the Loan Amount to the Juanhand account of the Borrower.

12. “Lump Sum Amount” means an amount equal to the Loan Amount plus interest payment and service fee made in a single payment.

13. “Normal Repayment” means the Borrower pays the Loan Amount and interest in full to the account of the Lender on or before the twenty-fourth (24^th) hour of the Due Date.

14. “Principal Loan Amount”means the money disbursed to the Borrower.

15. “Interest” means the additional amount over the Loan Amount to be paid by the Borrower, accruing on the due date for Lump Sum Amounts or on the agreed Due Dates for Installment Amounts.

16. “Overdue Payment” means the Borrower fails to pay the Loan Amount and interest in full to the account of the Lender on or before the twenty-fourth (24^th) hour of the Due Date. 

17. “Payment Channels” means the designated banks or third parties appointed by the Lender to accept payments from the Borrower which may include auto debit, online facilities, banking, digital wallets, and over-the-counter payments.

18. “Privacy Notice/Policy” means terms and conditions of Juanhand that sets forth the policies, standards and procedures for collection, use, disclosure, sharing, correction, and access with regard to the personal information of its customers, made available before allowing access to its platforms.

19. “Representatives” means the officers, directors, employees, agents, partners, attorneys, accountants and other advisors of either Party.

20. “Service Fee” means the fee collected from the Borrower for the facilitating services offered by the Lender.

21. "Substitute” means a third party who is willing and able to pay the overdue amounts on behalf of the Borrower under this Agreement.

22. “Service Provider” means the outsourced collection agents outsourced by the Lender to assist in the collection of unpaid balance due from the Borrower.

23. “Transferee” meansany person or entity, to whom the Lender sells, transfers, and assigns its rights and obligations over its credit under this Agreement.

3.PURPOSE OF THE LOAN 

The Borrower undertakes that the Loan borrowed under this Agreement shall be used solely for the purpose of [personal consumption].

4.DISCLOSURE REQUIREMENTS 

5.AMORTIZATION SCHEDULE

Loan Term: [x days/months] 

6.DRAWDOWN AND PAYMENT

1. After the approval of the Loan, the Lender shall transfer the Disbursed Loan Amount  to elected disbursement channel of the Borrower provided in his or her Juanhand account. After the Lender completes the above transfer, the Agreement comes into effect.

2. The Borrower irrevocably and unconditionally agrees to repay thePrincipal Loan Amount, interest, and other fees charged on or before the Due Date, and exclusively through the Payment Channels identified by the Lender, without need of any further notice or demand, as follows:

A. For Installment Amount (if applicable)

1. Principal Loan Amount: Within ____(days/months) over ____ (____) equal installments of _________________ (PHP ____) payable every ____ (____^th) day of each (week/month).

2. Interest: Any accrued interest shall likewise be paid, in addition to the Principal Loan Amount, on the Due Date described above.

3. The fourthand final installment shall include all outstanding Amounts Repayable.

B. For Lump Sum Amount (if applicable)

a. Principal Loan Amount: Within ________ (____) lump sum payment of ________ Pesos (PHP ________) payable on [Due Date]

b. Interest: Any accrued interest shall likewise be paid, in addition to the Principal Loan Amount, on the Due Date described above.

c. The lump sum paymentshall include all outstanding Amounts Repayable.

3. Payments made by the Borrower shall be applied in the following order: 

a. Principal Loan Amount;

b. Interest;

c. Collection/Late Payment Fee;

d. Service Fee;

e. All other expenses incurred under the Agreement;

4. Any and all payments to be made by the Borrower in connection with the Loan shall be processed with the banks or third-party Payment Channels designated by Lender (“Payment Channels”). Any changes to the Payment Channels shall be provided on Juanhand and shall serve as sufficient notice to the Borrower. Prior to making each payment, the Borrower shall verify the list of Payment Channels for proper payment.

5. The Borrower bears the risk of any delay or failure of payments to the Lender due to any event or circumstance, including without limitation to the closure, non-functioning, or malfunctioning of the Payment Channels. 

6. For avoidance of doubt, the Loan shall only be repaid by the Borrower in the same currency provided in the Agreement.

7.PREPAYMENT

1. The Borrower has the right to prepay in one lump sum all outstanding amounts of the Loan Amount and interest accrued thereupon. Payment in one lump sum of all outstanding loan amounts shall include the payment of all interest and fees, except late payment penalties, included in the disclosure statements under the general terms of the loan. In no way shall prepayment of the loan reduce the amounts due including all interests and fees.

2. If the Borrower elects to only prepay part of the Loan, the Borrower shall continue to repay the outstanding Loan Amount and interest accrued in accordance with the monthly repayment schedule provided under this Agreement.

8.OVERDUE PAYMENT 

1. The Borrower agrees that the Lender will provide payment reminders ahead of the Due Date and collect the overdue amounts in case of Overdue Payments. The actions taken by the Lender with regard to Overdue Payments shall be handled directly by the Lender, the Facility Manager, or outsourced to a third party service provider (“Service Provider”) which includes, but without limitation to, contacting the Borrower and/or contact person(s) designated by the Borrower via SMS, email, telephone, or visiting the Borrower.

2. If the Borrower fails to repay the Loan on the Due Date, the Borrower shall pay the Collection/Late Payment Fee to the Lender and/or the Service Provider engaged by the Lender, as the case may be, in addition to paying the Overdue Interest. Such Overdue Interest will start to accrue on the next calendar day after the relevant loan repayment is due.

3. After payments are overdue, the Borrower agrees, acknowledges, and hereby gives its consent to the Lender and the Facility Manager to disclose the personal information provided by the Borrower in his or her Juanhand account and include the Borrower in the blacklist of Juanhand to the extent permitted by laws and the national and local personal credit information systems.

4. The Borrower also agrees, acknowledges, and hereby gives its consent to the Lender and the Facility Manager to disclose the details of the Loan and the Overdue Payments to the Service Provider so that latter can assist in the collection of the Overdue Payments.

5. If any Overdue Payment exceeds thirty (30) calendar days, or the Borrower engages in any form of malicious behavior, such as avoiding or rejecting any and all communications or reminders for payment, or refusing to admit the existence of the Loan, the Lender is entitled to collect the outstanding Loan Amount, interest incurred, and costs immediately without need of demand. 

6. In the event of Overdue Payments, if a third party is willing to pay all overdue amounts on behalf of the Borrower ("Substitute”), the Borrower hereby authorizes the Lender to accept payments by such Substitute on his or her behalf. After the Substitute makes all Overdue Payments on behalf of the Borrower to the full satisfaction of the Lender, the Substitute assumes all rights and obligations of the Lender against the Borrower. This Agreement shall thus be terminated and the rights and obligations between the Borrower and the Lender shall no longer be valid and binding.

9.TRANSFER OF CREDITOR’S RIGHTS

1. The Lender may sell, transfer or assign, to which the Borrower hereby consents to such sale, transfer or assignment, any of its rights and obligations hereunder to any third person or entity (“Transferee”).

2. The Lender shall notify the Borrower of the transfer of its right by any of the following means:

a. Sending of email to the known email address of the Borrower;

b.Sending of a text message to the known mobile phone number of the Borrower;

c.Sending a message to the Borrower though Juanhand;

d.Any other reasonable means of notification provided in Juanhand.

3.The Borrower hereby acknowledges that the transfer of the rights and obligations of the Lender shall take effect upon the act of sending such notice to the Borrower through any or all of the available means as mentioned above.

4. The Borrower hereby acknowledges the rights and obligations in favor of the Transferee and shall comply with the terms and conditions of the Agreement in the same manner as the Borrower would have with the Lender.

10.RIGHTS AND OBLIGATIONS OF THE PARTIES

1. The rights and obligations of the Borrower are as follows:

a. The Borrower shall ensure that he or she has the commensurate ability to pay the Loan Amount and interest to the Lender in full on the Due Date with utmost timeliness, in accordance with this Agreement, and likewise pay the expenses of the Loan to the Lender, such as the Service Fee, Collection/Late Payment Fee, and other expenses incurred in connection with any Overdue Payment.

b. For the purpose of performing the obligations under the Agreement, the Borrower hereby agrees and gives its consent to the Lender that the latter may use the data collected or other personal information provided by the Borrower in his or her Juanhand account, pursuant to the Privacy Policy, including but not limited to the following:

1. Credit rating or information verification of the Borrower by the Lender or a third party appointed by the Lender;

2. Disclosure to the investors of the Lender;

3. In case of Overdue Payments, the Borrower’s personal and other relevant information shall be included in the blacklist of Juanhand and disclosed to service providers; and

4. Dispute resolution.

c. The Borrower shall in no circumstance transfer or assign any of its rights or obligations under the Agreement to a third party. 

d. The Borrower acknowledges and agrees that the Lender is entitled to contact the character references provided by the Borrower in his or her Juanhand account by telephone, text message, or any other reasonable means to inform them of any Overdue Payments of the Borrower. The borrower further acknowledges and agrees that he or she shall be responsible to inform the character references of their inclusion as such.

e. In the application for a Loan with the Lender, the Borrower shall provide complete, truthful, and accurate information on all of his or her outstanding loans in any other online lending platforms which could affect or interfere with the obligations of the Borrower under this Agreement. 

f. The Borrower agrees that he or she shall not engage in any of the following:

1. Fraudulently applying for a Loan with the Lender by way of deliberately changing or fabricating his or her identityand capacity to pay; 

2. Repeated borrowing by way of simultaneously approaching multiple online financing platforms;

3. Publishing the information in Juanhand and in this Agreement in a public venue, online or otherwise,other than in Juanhand;

4. Other activities prohibited by relevant laws and regulations for online lending platforms and other forms of financing.

g. The Borrower guarantees that the purpose for the Loan is true and lawful and undertakes to use the Loan Amount in accordance with the purpose set out in this Agreement.  Further, Borrower guarantees and undertakes that the Loan shall be only for the personal use or that of his/her family and not for business or resale, barter or hire of house, lot, motor vehicle, appliance or furniture.

2. The rights and obligations of the Lender are as follows:

a. The Lender is entitled to evaluate the creditworthiness of the Borrower and determine whether or not to approve the loan application based on personal and relevant information provided for evaluation. 

b. The Lender is entitled to perform due diligence on the age, financial status, investment experience, risk preference, and risk tolerance of the Borrower, the result of which will be used to assign to the Borrower a dynamically adjustable loan limit and loan classification.

c. After the loan application is approved, the Lender shall transfer the Loan Amount to the Borrower subject to the provisions abovementioned.

d. The Borrower agrees, acknowledges, and hereby gives it consent to the Lender that it is entitled to disclose information of the Borrower in accordance with laws, regulations, and other regulatory requirements.

11.EVENTS OF DEFAULT 

1. Each of the following events below constitutes an event of default (“Event of Default”), irrespective of the reason for its occurrence, or whether it is voluntary or involuntary, resulting in the termination of the Agreement:

a. the Borrower breaches or otherwise fails to promptly perform any of its obligations under the Agreement;

b. the Borrower breaches any of its representations, warranties, or covenants;

c. the Borrower is in default in respect of any other Loan granted by Lender or third parties not contemplated in this Agreement; and

d. any event which, in the reasonable opinion of Lender, would result in the likelihood that any of the obligations of the Borrower under the Agreement will not be performed or fulfilled.

12. LIABILITY FOR DEFAULT

1. If the Agreement is terminated prematurely as a result of an Event of Default, and the Borrower has any remaining balance in his or her Juanhand account, the Lender is entitled to use the remaining balance of the Borrower, to which the Borrower hereby gives his or her express consent thereto, for the settlement of the Loan and to demand from the Borrower all expenses incurred therefor. 

2. Upon the occurrence of an Event of Default, Lender may, at its sole discretion, without need of notice or demand, and without limiting the rights of the Lender under applicable law or under the Agreement:

a. take such necessary action and exercise such appropriate remedies in order to protect and enforce its rights under the Agreement;

b. declare the Agreement, including all charges, fees, and interest accrued and unpaid thereon, to be immediately due and payable, without need of presentment, demand, protest, or further notice of any kind, all of which are herein expressly and specifically waived by the Borrower;

c. impose and collect the Collection/Late Payment Fee as stated in the Agreement. The Collection/Late Payment Fee shall be imposed on each Installment Amount or on the Lump Sum Amount that is not paid by the Borrower on the relevant Due Date; and

d. impose and recover from the Borrower such other fees incurred in connection with enforcing the obligations of the Borrower under the Agreement;

e. report the default to government or public credit registry.  

13.REPRESENTATIONS AND WARRANTIES OF THE BORROWER

1. The Borrower represents and warrants that:

a. He or she is a citizen of the Republic of the Philippines with full civil capacity that binds himself or herself to the Lender and to enter into, exercise their rights, and perform and comply with their obligations under this Agreement;

b. The obligations of the Borrower under this Agreement are valid, binding, and enforceable;

c. All the representations or statements made, and information or documents provided to the Lender are legal, true, accurate, and valid without any omission, or concealment;

d. He or she will notify the Lender of any change in his or her contact details and address by calling Customer Service Hotline of the Lender or sending an email to [___], preferably before but in any case within three (3) business days after such change; and

e. He or she has read and understood the terms and conditions of the Group Life Policy and has voluntarily and knowingly entered into this Agreement with the intention to be bound by the terms and conditions provided therein.

14.COMMUNICATIONS

1. The Parties hereby confirm that all documents and/or notices relating to this Agreement shall be made in writing and may be served either by mail or by electronic means.

a. If by mail, the Parties confirm that the address in their identification documents provided on Juanhand is a valid address for proper service.

b. If by electronic means, the Parties confirm their information, such as fax number, telephone number, e-mail address, or instant messenger account on Juanhand are valid modes for proper service. 

2. Communication of documents and/or notices shall be deemed served with legal effect on the following dates:

a. if delivered by hand, the date on which the documents and/or notices arrive at the address of the other Party, without actual need of formal receipt;

b. if delivered by registered mail or courier (paid postage), the day of the actual receipt by the other Party;

c. if delivered by electronic means (including fax, SMS, e-mail and instant communication tools, etc.), at the time the communication is sent.

3. The Parties shall have the right to change their contact information and other significant information at any time. Any change shall be communicated within three (3) business days after such change comes into effect. Prior to the time when notice of change is properly served, a Party shall be entitled to serve documents and/or notices to the other Party on the registered contact information prior to the service of the notice of change, and shall no longer be required to serve the same document and/or notice again upon receipt of the notice of change.

15.PRIVACY

1. The privacy policy of Juanhand (“Privacy Policy”) is prepared in compliance with the laws of the Republic of the Philippines. As defined under Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012, which regulates the collection of information provided by Borrowers and for the collection, usage, storage, and analysis of the same by Juanhand, its assigns, affiliates, and related companies, and from which the identity of the individual may be apparent or can be reasonably and directly ascertained.

2. Juanhand values its customers and commits to protect all personal data which may be provided by the Borrower. Juanhand requires that the Borrower read the Privacy Policy carefully before accessing or using Juanhand. This Privacy Policy contains important terms that affect the legal rights of the Borrower.

3. It is understood that upon submission of the application form, the Borrower agrees to be bound by the terms and conditions set forth therein, and is deemed to have given consent to the collection, use, storage, and analysis of the data and personal information of the Borrower accordingly. If the Borrower does not wish to be bound by these terms and conditions, he or she may choose not to continue with the service. 

16.CONFIDENTIALITY

1. Regardless of whether this Agreement has been terminated, the Parties shall keep this Agreement and the contents herein ("Confidential Information") strictly confidential. The Party receiving Confidential Information shall not disclose the same to any third party, except with the prior written consent of the other Party, or in accordance with the applicable laws, regulations, judicial procedures, or listing requirements, or otherwise agreed upon in this Agreement.

2. The following information shall not be classified as Confidential Information:

a. any information that the receiving Party previously acquired lawfully from a third party;

b. information that has entered into public domain not due to the fault of the receiving Party (including any breach of this Agreement);

c. the Party receiving the information obtained the information lawfully from another source after the latter received such information.

3. The Party receiving the Confidential Information may disclose such to its employees, agents, professionals, and partners (collectively “Representative(s)”) when such disclosure is necessary. The Party receiving the Confidential Information shall nevertheless ensure that the Representative(s) adhere to the confidentiality obligation under this Agreement.

4. Notwithstanding any other provision of this Agreement, the legal obligations and effects of this article shall not be affected by the suspension or termination of this Agreement.

17.GOVERNING LAWS AND JURISDICTION

1. The Agreement is executed in Pasig City, Philippines.

2. The interpretation, execution, performance, and termination of the Agreement shall be construed in accordance with and governed by the laws of the Republic of the Philippines.

3. Any and all disputes, controversies, or conflicts arising from or in relation to this Agreement, including disputes on its validity, enforcement, binding effect, breach, amendment, expiration, and termination of this Agreement, shall be settled exclusively by the trial courts of Taguig City, to the exclusion of all others.

18.MISCELLANEOUS

1. The Agreement or any supplement hereto in electronic form on Juanhand, whether in one or more copies, will have the same legal effect. The Agreement or any supplement hereto will be saved on the designated server of the Lender for the purpose of inspection and documentation.

2. The Parties acknowledge the legal effect and integrity of the electronic copy hereof. The Parties agree that in the event of conflict, the interpretation of the Lender and the version of this Agreement saved in the server of the Lender shall prevail.

3. Notwithstanding the any provisions to the contrary, the Agreement shall automatically terminate after all Amounts Repayable under the Agreement are fully paid by the Borrower.

4. If any provision of this Agreement should be held to be void, invalid, illegal or unenforceable, in whole or in part, the validity of the remaining provisions shall remain unaffected hereby. Such provision or part thereof shall be treated as severable and shall be modified accordingly.

5. This Agreement supersedes any previous agreement and/or understanding made either verbally or in writing by the Parties concerning the subject matter of this Agreement.

6. Other matters which have not been stipulated in this Agreement may be stipulated in separate agreement(s) or addendum(s) on Juanhand and shall be incorporated herein by reference. Upon agreement by the relevant parties, such separate agreement(s) and addendum(s) shall be binding and inure to the benefit of the relevant parties. In the event of conflict, such separate agreement(s) or addendum(s) shall prevail.

7. The Parties agree that any amendments to this Agreement shall only be valid if agreed upon by the Parties in writing, which shall include its electronic form.

8. This Agreement may be executed in any number of counterparts by the Parties, each of which when so executed (including by electronic form) shall be an original, but all counterparts shall together constitute the same document which governs the same matter.

(Signature page follows.)

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed.

Version Date: July 2023