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Junior Deed Of Trust Template for Philippines

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Key Requirements PROMPT example:

Junior Deed Of Trust

"I need a Junior Deed of Trust for a commercial property in Manila valued at 鈧25 million, where we're taking a second position loan of 鈧8 million behind an existing 鈧12 million senior trust deed, with the document to be effective from March 15, 2025."

Document background
A Junior Deed of Trust is utilized in Philippine real estate transactions when a property owner seeks additional financing while an existing trust deed is in place. This document type is crucial in the Philippine lending landscape, where multiple financing arrangements on a single property are common. The Junior Deed of Trust must comply with the Civil Code of the Philippines and Property Registration Decree requirements, clearly establishing its subordinate position to the senior trust deed. It contains comprehensive details about the property, parties' rights and obligations, default provisions, and remedies, while ensuring proper registration with the Land Registration Authority. The document is particularly relevant in scenarios involving property refinancing, additional credit facilities, or development funding where existing senior financing is in place.
Suggested Sections

1. Parties: Identification of the Trustor (borrower), Trustee, and Beneficiary (lender)

2. Background: Context of the trust deed creation, including reference to the senior trust deed and loan agreement

3. Definitions: Key terms used throughout the document, including property description, loan amount, and related agreements

4. Trust Creation: Formal declaration of trust and conveyance of property to trustee

5. Property Description: Detailed legal description of the property subject to the trust deed

6. Secured Obligations: Description of the debt or obligations secured by the trust deed

7. Subordination Provisions: Clear statement of junior position and relationship to senior trust deed

8. Trustor's Covenants: Obligations of the trustor including maintenance, insurance, and tax requirements

9. Default Provisions: Events of default and consequences

10. Remedies: Rights and remedies of the beneficiary upon default

11. Trustee Powers: Powers and duties of the trustee

12. Notice Requirements: Procedures for giving notice between parties

13. Governing Law: Specification of Philippine law as governing law

14. Execution: Signature blocks and notarization requirements

Optional Sections

1. Environmental Provisions: Additional provisions regarding environmental compliance and hazards, used when property has potential environmental risks

2. Condominium Provisions: Special provisions for condominium properties, used when the trust property is a condominium unit

3. Assignment Provisions: Detailed provisions regarding the right to assign the beneficial interest, used when assignment is anticipated

4. Insurance Requirements: Detailed insurance requirements beyond standard coverage, used for high-value or special-use properties

5. Property Management: Provisions for professional property management, used for income-producing properties

6. Co-Trustor Provisions: Additional provisions for multiple trustors, used when property has multiple owners

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property including boundaries, certificates of title, and tax declaration numbers

2. Schedule B - Permitted Encumbrances: List of existing liens, encumbrances, and the senior trust deed details

3. Schedule C - Loan Terms: Summary of the loan terms, including amount, interest rate, and payment schedule

4. Schedule D - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts

5. Appendix 1 - Form of Notice: Standard forms for various notices required under the deed

6. Appendix 2 - Property Documents: Copies of relevant property documents including tax certificates and title documents

7. Appendix 3 - Senior Lender Consent: Documentation of senior lender's acknowledgment of the junior trust deed

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses


































Relevant Industries

Real Estate

Banking

Financial Services

Property Development

Construction

Mortgage Lending

Trust Services

Legal Services

Property Management

Relevant Teams

Legal

Real Estate

Credit Risk

Compliance

Loan Operations

Property Management

Document Processing

Title and Registration

Trust Administration

Mortgage Operations

Relevant Roles

Real Estate Lawyer

Property Manager

Loan Officer

Trust Officer

Credit Risk Manager

Real Estate Developer

Mortgage Broker

Legal Counsel

Compliance Officer

Title Examiner

Property Assessor

Banking Officer

Real Estate Agent

Document Specialist

Loan Processor

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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