SOP Exhibits

Title:

Requirements of a Real Estate Mortgage to be Accepted as Bond

SOP Number : BR-RL02

REQUIREMENTS FOR A REAL ESTATE MORTGAGE TO BE ACCEPTED AS BOND

I. A bond secured by Real Estate - bond secured by a real estate mortgage and the mortgage deed or bond contract shall be in such forms as maybe prescribed by he NFA Administrator and the following requirements shall be complied with:

a. Real estate property maybe titled (covered by a Torrens Certificate of Title) or untitled (covered by Tax Declaration in applicant's name).

b. That it must be free from any lien or encumbrance.

c. That taxes and irrigation fee, if irrigated land, for the current year must have been paid. (Latest Real Estate Tax Receipt must be presented).

d. That the mortgage deed or bond contract executed in favor of the authority be registered with the Register of Deeds of the province where the property is located.

e. Improvements in land, buildings, installed machinery etc. must be included in the mortgage insured against loss by fire, in which case, the fire policy shall be endorsed in favor of the Authority, stating among others, that loss if any, shall be payable to the Authority.

f. In case the land offered as bond is devoted to rice and/or corn production and the same is tenanted, the written consent of the tenants shall first be secured by the land owner.

g. In case of entitled lands or those not covered by Torrens title, the following additional requirements should be submitted:

1. Certification from the Bureau of Lands that the property offered as security is not part of the public domain ;

2. Evidence of ownership, such as the following:

2.1 "Titulo Real". "Titulo de Information Posesonia". Titulo de Composicion con el
Estado";

2.2 Deed of Sale, donation, deed of exchange, deed of judicial or extra-judicial partition,
deed of cession and other documents of transfer registered in the Office of the Registered in the Office of the Register of Deeds of the province where the property is located, under R.A. No. 33444, as amended.

3. Copy of tax declaration issued on the property for the last five (5) years in the name of applicant or from date of acquisition if less than five (5) years ago.

4. Blueprint plan of the property, if same has been surveyed, otherwise a sketch plan of the lot showing the approximate distance and direction of the boundary lines, and the location of the lot with reference to the permanent landmarks, such as buildings of structures, if any and to public roads, creeks, rivers and /or street intersections, shall be submitted.

5. Affidavit in prescribed format of owners of adjoining land (as appearing in latest tax declaration) executed individually or collectively stating that applicant is the owner of the subject property and stating the known boundaries of the same. In case of change of ownership of the adjoining lands, the present owner should state in affidavit how he acquired the rights and interests of the person appearing in the tax declaration as owner thereof.