Promissory Note Sample for Water Bill Philippines

PROMISSORY NOTE FOR WATER UTILITY ARREARAGE

DOCUMENT ID: PN-WATER-[YYYYMMDD]-[SERIAL#] EFFECTIVE DATE: [Date] VERSION: 1.0 GOVERNING JURISDICTION: Republic of the Philippines

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LEGAL DISCLAIMER

This document is a formal template provided for informational and drafting purposes. It is designed to be compliant with the Civil Code of the Philippines and relevant utility regulations. However, it does not constitute specific legal advice. User is advised to consult with a member of the Philippine Bar to ensure compliance with specific LGU (Local Government Unit) ordinances, the rules of the Local Water Utilities Administration (LWUA), or specific franchise agreements governing the local water district.

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1. PARTIES

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

THE PAYEE: [Water District/Utility Company Full Name], a government-owned/private corporation duly organized and existing under the laws of the Philippines, with principal office located at [Office Address] ("Payee").

THE PAYOR: [Customer Full Legal Name], of legal age, Filipino, residing at [Residential Address], and holder of Account Number: [Account Number] ("Payor").

2. RECITALS

WHEREAS, Payor has incurred an outstanding water utility service obligation in the total amount of [Amount in PHP] (PHP [0.00]), representing unpaid charges for water consumption and related services as of [Date of Billing Cycle] (the "Arrearage");

WHEREAS, Payor acknowledges the validity of said debt and intends to settle the obligation through a structured installment plan;

NOW, THEREFORE, for and in consideration of the foregoing, the Payor hereby unconditionally promises to pay to the order of the Payee the amount of [Amount in PHP] (PHP [0.00]) under the terms set forth herein.

3. PAYMENT TERMS & SCHEDULE

3.1 Principal Amount: Payor agrees to pay the total Principal Amount of [Amount in PHP] (PHP [0.00]). 3.2 Installment Schedule: Payments shall be made in [Number] equal monthly installments of [Amount per Installment] (PHP [0.00]), commencing on [Date of First Payment] and continuing on the same day of each succeeding month until the total obligation is satisfied. 3.3 Application of Payments: Payments shall be applied first to accrued interest (if any), then to administrative charges, and finally to the Principal Amount.

4. LATE PAYMENTS AND DEFAULT

4.1 Late Fees: Any payment not received within five (5) calendar days of the due date shall incur a penalty charge of [Percentage]% per month of the remaining unpaid balance. 4.2 Event of Default: The following shall constitute an Event of Default: (a) failure to pay any installment within fifteen (15) days of the due date; or (b) misrepresentation of financial status provided to the Payee. 4.3 Acceleration: Upon the occurrence of an Event of Default, the Payee may, at its sole discretion, declare the entire remaining unpaid balance immediately due and demandable, and initiate the disconnection of water services pursuant to the service agreement.

5. GOVERNING LAW & JURISDICTION

This Note shall be governed by and construed in accordance with the laws of the Republic of the Philippines. Any legal action or proceeding arising out of this Note shall be brought exclusively in the proper courts of [City/Municipality], Philippines, to the exclusion of all other venues.

6. CONFIDENTIALITY

The parties agree to maintain the terms of this Note in strict confidence and shall not disclose the contents hereof to any third party, except as required by law, regulatory audit, or judicial process.

7. ENTIRE AGREEMENT

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

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8. EXECUTION & SIGNATURES

FOR [WATER DISTRICT/UTILITY NAME]: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Date: [Date]

FOR [PAYOR NAME]: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Date: [Date]

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9. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Replace all bracketed information [ ] with actual data. Ensure the "Account Number" matches the utility company's internal billing system exactly.
2. Verification: Verify the identity of the Payor by requesting a valid Philippine Government-issued ID (e.g., UMID, Driver’s License, Passport).
3. Witnesses: While not strictly required by law for a simple note, having two (2) witnesses sign below the signature blocks provides additional evidentiary weight in a collection suit.
4. Digital Execution: If utilizing electronic signatures (e.g., DocuSign, Adobe Sign), ensure that the "Audit Trail" or "Certificate of Completion" is saved and attached to the PDF record.
5. Notarization: For institutional-grade enforcement, have the document notarized before a commissioned Notary Public. This transforms the document into a "Public Document," which carries a presumption of regularity and authenticity in Philippine courts.
6. Record Retention: The Payee must store the original signed/notarized copy in the digital/physical file associated with the Payor's Account Number. Maintain for a minimum of ten (10) years, or per the company’s internal Data Privacy Act (DPA) retention policy.