Promissory Note Sample for School Tuition Fee Philippines

PROMISSORY NOTE: TUITION FEE OBLIGATION

DOCUMENT ID: EDUC-NOTE-[YYYYMMDD]-[001] EFFECTIVE DATE: [Date] VERSION: 1.0 GOVERNING JURISDICTION: Republic of the Philippines

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STATUTORY & LEGAL COMPLIANCE NOTICE

This document constitutes a legally binding debt instrument under the laws of the Republic of the Philippines, specifically governed by the Civil Code of the Philippines (Book IV, Title III on Obligations and Contracts). This draft is provided for educational and template purposes. It does not constitute formal legal advice. Users are strongly advised to consult with Philippine legal counsel to ensure compliance with specific Department of Education (DepEd) or Commission on Higher Education (CHED) regulations applicable to the specific educational institution.

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1. PARTIES

This Promissory Note ("Note") is entered into by and between:

THE PAYEE (EDUCATIONAL INSTITUTION): [Full Legal Name of School], a corporation duly organized and existing under the laws of the Philippines, with principal office address at [Office Address] ("School").

THE PAYOR (PARENT/GUARDIAN): [Full Legal Name of Parent/Guardian], of legal age, with residential address at [Home Address] ("Payor").

THE STUDENT: [Full Legal Name of Student], enrolled in [Grade Level/Course].

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2. PRINCIPAL OBLIGATION

For value received, the Payor unconditionally promises to pay to the order of the School the principal sum of Philippine Pesos: [Amount in Words] (PHP [0.00]), representing the outstanding tuition and miscellaneous fees for the [Semester/School Year] period.

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3. PAYMENT TERMS & SCHEDULE

The Payor agrees to satisfy the obligation through the following schedule:

• Initial Down Payment: PHP [Amount] due on [Date].
• Installment 1: PHP [Amount] due on [Date].
• Installment 2: PHP [Amount] due on [Date].
• Final Payment: PHP [Amount] due on [Date].

Payments shall be made via [Bank Transfer/Cash/Manager’s Check] to the School’s designated account at [Bank Name], Account Number [Number].

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4. LATE PAYMENTS & INTEREST

Should the Payor fail to remit any installment on the specified due date, the unpaid balance shall accrue a late payment penalty of [e.g., 2%] per month, compounded monthly, from the date of default until the obligation is fully satisfied. The School reserves the right to withhold the issuance of Report Cards, Certificates of Enrollment, or Transcript of Records until the account is settled in full, pursuant to the school's internal policies and applicable DepEd/CHED regulations.

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5. ACCELERATION CLAUSE

Upon the failure of the Payor to pay any two (2) consecutive installments when due, the entire remaining balance shall, at the option of the School, immediately become due and demandable without the necessity of prior notice or demand, both of which are hereby expressly waived by the Payor.

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6. CONFIDENTIALITY

The parties agree to maintain strict confidentiality regarding the terms of this financial arrangement. Neither party shall disclose the contents of this Note to any third party except as required by law, accounting audit requirements, or legal proceedings.

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7. REPRESENTATIONS & WARRANTIES

The Payor represents and warrants that they possess the legal capacity to enter into this agreement and that the funds intended for payment are legally obtained. The Payor acknowledges that the School’s services provided to the Student constitute valid consideration for this obligation.

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8. DISPUTE RESOLUTION & GOVERNING LAW

This Note shall be governed by and construed in accordance with the laws of the Republic of the Philippines. In the event of any dispute arising from or in connection with this Note, the parties shall endeavor to resolve the matter amicably through mediation. Should mediation fail, any legal action shall be filed exclusively in the proper courts of [City/Municipality], Philippines, to the exclusion of all other venues.

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9. ENTIRE AGREEMENT

This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements, oral or written. No amendment or modification shall be valid unless in writing and signed by both parties.

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10. SEVERABILITY

If any provision of this Note is held to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law.

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11. SIGNATURES

FOR [SCHOOL NAME]: Signature: _____________________________________ Printed Name: [Name of Authorized Representative] Title: [e.g., Registrar / Finance Officer] Date: [Date]

FOR [PAYOR / PARENT]: Signature: _____________________________________ Printed Name: [Full Legal Name of Parent/Guardian] Title: Parent / Legal Guardian Date: [Date]

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Open this template in a Word processor. Use "Find/Replace" to update all bracketed information. Ensure the currency is explicitly stated as PHP to avoid ambiguity.
2. Verification: Verify the signatory's authority for the School. The person signing should ideally be the Registrar, Finance Head, or authorized representative designated by the Board of Trustees.
3. Witnessing: While not strictly required for a simple promissory note, it is industry standard in the Philippines to have one or two witnesses sign at the bottom to attest to the execution.
4. Digital Execution: Use platforms like DocuSign or Adobe Sign for electronic signatures. Ensure that the platform provides a "Certificate of Completion" that includes an audit trail of the signatories' IP addresses and timestamps.
5. Notarization (Optional but Recommended): For high-value tuition amounts, take the signed document to a Notary Public to convert the private document into a Public Document. This provides "presumption of regularity" and evidentiary weight in Philippine courts.
6. Record Retention: Maintain the signed original in the Student’s permanent financial file. Provide a certified true copy to the Payor. Retain records for at least ten (10) years, or per the School’s data retention policy.