������Ƶ

The Promissory Note Purchase and Sale Agreement is essential for transactions in the Philippine financial market where parties wish to transfer promissory notes in the secondary market. This document is commonly used when financial institutions, businesses, or individuals want to sell or acquire existing promissory notes, either for liquidity purposes, investment opportunities, or portfolio management. The agreement must comply with Philippine law, particularly the Negotiable Instruments Law (Act No. 2031) and the Civil Code, while addressing key aspects such as purchase price, transfer mechanics, representations about the note's validity, and payment terms. It's particularly important in situations involving debt trading, asset sales, or restructuring transactions, where proper documentation of the transfer is crucial for legal certainty and enforcement rights. The agreement includes comprehensive provisions protecting both seller and purchaser interests, ensuring clear title transfer, and establishing recourse rights if applicable.

1. Parties: Identifies the seller and purchaser of the promissory note, including their complete legal names and addresses

2. Background: Explains the context of the transaction, including brief details about the promissory note(s) being sold and the parties' intention to enter into the purchase and sale transaction

3. Definitions: Defines key terms used throughout the agreement, including 'Promissory Note', 'Purchase Price', 'Closing Date', etc.

4. Sale and Purchase: Details the core transaction: the seller's agreement to sell and the purchaser's agreement to buy the promissory note

5. Purchase Price and Payment: Specifies the purchase price and payment terms, including payment method and timing

6. Closing and Transfer: Describes the mechanics and timing of the closing, including delivery of the original promissory note and any required endorsements

7. Seller's Representations and Warranties: Sets forth seller's representations about the promissory note's validity, enforceability, and absence of encumbrances

8. Purchaser's Representations and Warranties: Contains purchaser's representations regarding authority to enter into the transaction and compliance with laws

9. Conditions Precedent: Lists conditions that must be satisfied before the parties are obligated to close the transaction

10. Governing Law and Jurisdiction: Specifies that Philippine law governs and designates the courts having jurisdiction over disputes

11. Miscellaneous: Standard boilerplate provisions including notices, amendments, severability, and entire agreement