PART I. COMMON PROVISIONS

This Part I contains terms and conditions that are applicable to all types of Loans.

DEFINITION AND INTERPRETATION OF TERMS

1. In these Loans Terms and Conditions, unless the context otherwise requires, the following terms shall have the meanings set out below:
1. "Account" means all deposit products of Tonik, including Tonik Savings Account, Time Deposit(s), and Solo or Group Stashes;
2. "Affiliate" means, with respect to Tonik, a person, corporation, or entity that directly or indirectly controls, is controlled by, or is under common control with, Tonik. For purposes of this definition, "control" means (a) the direct or indirect ownership of more than fifty percent (50%) of the voting stock or equity of Tonik or such person, corporation, or entity; or (b) the power or ability to appoint or remove the majority of the members of the board of directors of Tonik or of such person, corporation, or entity. The terms "controlling," "controlled," and "under common control" shall be interpreted accordingly. For the avoidance of any doubt, Templetech Finance Corp. ("Tendo") and Tonik Financial India Pvt. Ltd. are Affiliates of Tonik;
3. "Amortization Schedule" means the table or schedule that specifies the breakdown of each loan repayment into principal, interest, and other applicable charges over the Loan term, showing how the Loan balance decreases over time;
4. "Applicable Law" means the Constitution, statutes, laws, rules, regulations, ordinances, codes, policies, judgments, orders, decrees, permits, or any published directives, guidelines, requirements, or other governmental restrictions which have the force of law, or any determination or interpretation of any of the foregoing by any judicial authority whether in effect as of the date of application or as any date thereafter;
5. "BSP" means Bangko Sentral ng Pilipinas, or the Central Bank of the Philippines;
6. "Banking day" means a day, other than a Saturday, Sunday or public holiday, in which banks are generally open in the Philippines and Pasig City;
7. "Borrower," "he/she," "you," "your," or "yours" means the person named as borrower or co-borrower in the Loan application and the other Loan Documents, and shall include all such persons collectively, if more than one (1);
8. "Deposit Account" refers to any account maintained with Tonik for the purpose of depositing, holding, or transacting funds. This includes, but is not limited to, your Tonik Savings Account, Time Deposit, Solo Stash, and Group Stash, as well as any other savings, time deposit, or similar accounts that Tonik may offer from time to time;
9. "Direct Debit Form" means the authorization form executed by the Borrower allowing Tonik to automatically debit payments due from the Borrower's designated Tonik Savings Account or other nominated account for the purpose of settling loan amortizations, fees, or other obligations;
10. "Disclosure Statement" means the document provided by Tonik showing the key financial terms of your Loan, including the loan amount, interest rate, fees, charges, and other information required by Applicable Law and regulations;
11. "Financial Institutions Strategic Transfer Corporation (FISTC)" refers to a corporation registered with the Securities and Exchange Commission (SEC) under Republic Act (R. A.) No. 11523 or the Financial Institutions Strategic Transfer (FIST) Act, authorized to purchase and manage Non-Performing Loans and assets from financial institutions;
12. "Loan" means a loan that you apply for, and that Tonik approves and grants or disburses to you or on your behalf. These Loans Terms and Conditions cover the following types of Loans, including any other Loan products that Tonik may offer in the future:
    1. "Buy Now, Pay Later ("BNPL") Loan" or "Shop Installment Loan ("SIL")" means a Loan used to purchase goods or services from Tonik's partner merchants or retailers, whether through physical stores or online platforms. The Loan proceeds may be disbursed to you or directly to the merchant or retailer;
    2. "Loan Secured with Mortgage" means a Loan secured by a real estate mortgage over Property owned by you, either solely or jointly with one (1) or more Property Co-Owners, and accepted by Tonik as collateral;
    3. "Loan Linked to a Salary Card or Other Accounts" means a Loan linked to your salary deposit account or to accounts maintained with other financial institutions;
    4. "Unsecured Cash Loan" means a cash Loan which is not secured by any mortgage, security, or other collateral, except as otherwise provided in Part I of these Loans Terms and Conditions;
    5. "Payroll Loan" means Tonik Loans secured via Tendo Platform and managed and repaid through Tendo;
    6. "Tonik Solar Loan" means a Loan granted by Tonik to finance your purchase and installation of a solar energy system ("Solar Energy System") from a participating third-party provider ("Solar Energy System Provider"). The Loan proceeds may be disbursed directly to the Solar Energy System Provider on your behalf. The Solar Energy System shall be subject to a separate Security Agreement in favor of Tonik; and
    7. "Other Loan Products" means any other type of Loan that Tonik may offer from time to time, including through the Tonik Application or the Tendo Platform. The eligibility criteria and requirements for these Loans shall be as specified in Part II hereof, on Tonik's website, and/or through the Tonik Application and/or Tendo Platform, as applicable.
13. "Loan Agreement" means the contract between you and Tonik governing your Loan, including the Disclosure Statement, Amortization Schedule, and these Loans Terms and Conditions, and such other documents as may form part of your Loan Agreement from time to time;
14. "Loan Documents" means your Loan Agreement and any other documents relating to your Loan, including the Promissory Note, Direct Debit Form, Security Agreement, where applicable, and such other documents as you may sign or agree to in connection with your Loan from time to time;
15. "Loans Terms and Conditions" means these terms and conditions governing the Loans offered by Tonik, including any amendments made from time to time;
16. "Monthly Installment" means the principal amount, accrued interest, premiums, fees, penalties, and charges to be paid by the Borrower under any, some, or all of the Loan Documents on each Payment Date;
17. "Non-Performing Loan" means a Loan, whether secured or unsecured, including a restructured loan, where payment of the principal, interest, or any other amounts due has been delayed or unpaid for at least one (1) day after due date, or where any of the Events of Default under these Loans Terms and Conditions or restructuring agreement has occurred;
18. "Payment Date" means the due date for a principal repayment, interest payment, or other payment, as indicated in the Disclosure Schedule and the other Loan Documents;
19. "Promissory Note" means a document in which you promise to repay your Loan to Tonik under the terms stated in that document;
20. "Protection Insurance" or "PI" refers to a Value-Added Service that is underwritten as an insurance policy, as further described in Part III. one of the services that is bundled with the Payment Holiday feature for select Loans;
21. "Personal Information" has the meaning given to it under R. A. No. 10173, or the Data Privacy Act of 2012 ("DPA"), and/or Tonik's Privacy Statement (https://tonikbank.com/data-privacy-statement), which are hereby incorporated herein and made an integral part hereof."Promissory Note" means the written and signed instrument by which the Borrower formally promises to pay Tonik the total amount of the Loan, including interest and other applicable charges, in accordance with the agreed payment schedule and these Loans Terms and Conditions;
22. "Relationship" refers to the ongoing engagement between the Borrower and the Bank, which may include, but is not limited to, the Borrower's existing or prior Loan(s), applications for credit products, repayment behavior, and any other interactions or transactions that inform the Bank's decision to extend additional financial products or services;
23. "Security Agreement" means an agreement executed by you or another person in favor of Tonik, under which specified property or assets, including the Solar Energy System financed through a Tonik Solar Loan, as applicable, are provided as collateral to secure the payment of your Loan or the performance of your obligations under the Loan Documents. The Security Agreement sets out Tonik's rights and remedies in respect of the collateral, including its recovery or enforcement rights upon default, subject to Applicable Law.
24. "Special Purpose Vehicle ("SPV")" refers to an entity created under R. A. No. 11523, authorized to acquire, manage, and dispose of non-performing assets from financial institutions;
25. "Specific VAS Terms" means the terms and conditions applicable to a particular VAS Product, as set out in its product disclosure, certificate of insurance or coverage, in-Application disclosure, or other applicable document made available to you. These include, where applicable, the product's coverage, benefits, eligibility requirements, exclusions, fees or premiums, and other relevant conditions;
26. "Tendo" refers to Templetech Finance Corp. doing business under the names "Tendo" and "Tendo by Tonik," an affiliate of Tonik, acting as Tonik's agent in connection with the "Payroll Loans;"
27. "Tendo Platform" refers to Tendo's online loan onboarding, marketing and distribution of digital service mobile and web-based application;
28. "Tonik," "the Bank," "we," "us," "our" means Tonik Digital Bank, Inc.;
29. "Tonik Application" or "Application" means the Tonik Mobile Banking Application, in particular, offering Loans to the Borrowers;
30. "Tonik Savings Account" means the Savings Account of the Borrower with Tonik; and
31. "Value-Added Services ("VAS") Product" means any Payment Holiday, insurance coverage, warranty, or other value-added service that Tonik makes available to you in connection with a Loan or an Account, whether currently offered or introduced at a later date, as further described in Part III.

2. In the event of any conflict or inconsistency between these Loans Terms and Conditions and any of the other Loan Documents, the provisions of these Loans Terms and Conditions shall apply, unless otherwise expressly stated. Part II contains terms and conditions that apply specifically to a particular type of Loan. In the event of any conflict or inconsistency between the provisions of Part I and those of Part II, the latter shall prevail. Finally, in case of any conflict or inconsistency between the terms provided in these Loans Terms and Conditions and the Disclosure Statement, these Loans Terms and Conditions shall govern.

3. In these Loan Terms and Conditions, unless the context clearly states otherwise:
   1. words in the singular shall also include the plural, and vice versa;
   2. references to one (1) gender shall also include all other genders;
   3. if a period of time is stated as starting from a specific day, or from the day an act or event occurs, that day is not included in counting the period;
   4. references to "writing" shall include any form of legible communication, such as printed or electronic form, and shall include email unless expressly stated otherwise;
   5. references to "includes," "including," or "such as" shall mean "including but not limited to," or "including without limitation";
   6. references to "you" or "Borrower" shall refer to the person named as Borrower or co-borrower in the Loan Application and the other Loan Documents, and shall include all such persons collectively, if more than one (1); and
   7. the headings in these Loans Terms and Conditions are provided for convenience only and shall not affect their interpretation.

ELIGIBILITY AND APPLICATION

4. To apply and qualify for a Loan, you must: (a) meet the citizenship, residency, and/or immigration status requirements, where applicable; (b) have an active Tonik Account and/or an account on the Tendo Platform; (c) possess the legal capacity to enter into a binding contract; and (d) be within the age range prescribed by Tonik at the time of your Loan application. These requirements may vary depending on the specific Loan and may include additional qualifications, as specified in Part II of these Loans Terms and Conditions, on Tonik's website, in the Tonik Application, and/or or on the Tendo Platform, as applicable.

5. To apply for a Loan, you must provide true, complete, and accurate information, and submit all required documents or additional information that Tonik may request to process the application. These details will serve as the basis for the evaluation and/or approval of the Loan. Tonik reserves the right to approve, reject, decline, or cancel any Loan application at any stage before Loan disbursement, in accordance with Tonik's credit policies and evaluation procedures. Tonik is not required to disclose the reasons for its decision. Your eligibility and Loan approval remain subject to Tonik's evaluation and sole discretion.

6. The Bank may, at its sole discretion, offer new Loan products or credit facilities to you based on your profile, repayment history, and overall relationship with Tonik. These offers are intended to help maintain and enhance your continuing credit relationship with the Bank.

7. The Bank may assess your eligibility for any new and separate Loan facility, in accordance with its prevailing credit policies, internal assessment procedures, and applicable regulatory guidelines.

8. Any such Loan offer shall be treated as a separate and distinct Loan facility and shall not be interpreted as an extension, renewal, or restructuring of any prior Loan. Acceptance of any new Loan offer shall be entirely voluntary on your part.

9. Tonik reserves the right, at its sole discretion, to cancel any approved but unutilized Loan at any time, in accordance with its internal policies and Applicable Law and regulations.

REPRESENTATIONS AND WARRANTIES

10. You represent and warrant that:
    1. you have the full and absolute legal right, power, and authority to execute, deliver, and perform the obligations contained in the Loan Documents;
    2. each of the Loan Documents constitutes your legal, valid, and binding obligation, and is enforceable against you in accordance with its terms;
    3. the execution, delivery, and performance of the Loan Documents, including the representations and warranties contained therein, do not contravene or violate any agreement, contract, Applicable Law, rule, regulation, or order applicable to or binding on you, your income, and/or you properties;
    4. you have no criminal record and are entering into the Loan Documents or Loan Agreement freely and voluntarily;
    5. your existing loans and obligations with other lenders, including but not limited to Tonik, other banks, financing companies, and credit cards companies, are updated and not delinquent or past due; and
    6. all documents, identification, communications, and information you provide, or that are provided on your behalf, are complete, accurate, and true.

11. The above representations and warranties are made by you as of the date of execution of each Loan Document and shall be deemed continuously made and reaffirmed throughout the duration of your Loan.

OBLIGATIONS AND COVENANTS

12. You must properly and promptly inform Tonik via call, email, or through the self-service feature in the Tonik Application, if applicable, any updates and/or changes to the information you previously provided, including but not limited to your address, contact details, or other relevant Personal Information. In case of any discrepancy in your name as stated in any of the Loan Documents, Tonik shall issue corrected Loan Documents to reflect the accurate name. You shall also notify Tonik of any change in your employment status within two (2) business days from the date such change occurs.

13. You agree to abide by and be bound by these Loans Terms and Conditions and all provisions stated in the Loan Documents.

14. You agree to pay Tonik any outstanding amounts, including but not limited to, fees, finance charges, interest, or any other unpaid amount, as stated in the Loan Documents.

15. You agree to review your Statements of Account regularly and inform Tonik of any errors or incorrect charges, transactions, or payment records within sixty (60) calendar days from the date the relevant Statement of Account is issued. Tonik will review any reported errors in accordance with its procedures and Applicable Law and regulations. If you do not report any errors within this period, Tonik may consider the charges, transactions, and payment records shown in your Statement of Account to be correct, unless you can show otherwise.

16. You agree to promptly provide and submit all documents or information that Tonik may require from time to time throughout the duration of your Loan.

17. You agree to use the Loan solely for personal use and the specific purpose declared in your application, and not for any unlawful or prohibited purposes or activities.

18. You agree that your authorization for automatic direct debit from your Tonik Savings Account or other linked accounts shall remain valid and effective even in the event of any unfortunate occurrence, such as your death or permanent disability, until Tonik receives formal written notice of such event.

19. You agree that these Loans Terms and Conditions and Loan Documents shall be binding upon, and inure to your and Tonik's benefit, as well as your respective estates, heirs, personal representatives, assigns and/or successors-in-title, and any other person lawfully deriving title or rights through them.

20. If a Loan is granted to two (2) or more Borrowers, including those who are married to each other, you and the other Borrower(s) shall be jointly and severally liable to Tonik for the full performance of all obligations under the Loan Documents. Each Borrower hereby irrevocably authorizes the other Borrower(s) to receive any and all notices and communications from Tonik on their behalf. Accordingly, service of notice or communication to any one (1) Borrower shall be deemed service to all Borrowers. An Event of Default affecting one (1) Borrower shall likewise be considered an Event of Default for all Borrowers. For example, and without limiting the foregoing, if any property of one (1) Borrower becomes the subject of garnishment, attachment, levy, expropriation, seizure, execution, or other any similar legal process, such event shall also constitute an Event of Default applicable to all Borrowers under the Loan Documents.

21. In the event of your death, your estate, heirs, and personal representatives shall be required to pay and repay your outstanding obligations under the Loan from the assets of your estate. No action will be taken against your heirs or personal representatives in their personal capacity.

22. Any Documentary Stamp Tax ("DST") legally due on your Loan shall be computed in accordance with Applicable Law and Bureau of Internal Revenue ("BIR") regulations and, where chargeable to you, may be deducted from the Loan proceeds before release. The applicable DST rate, exemptions, and computation rules shall apply, and the DST amount and its impact on net proceeds shall be disclosed to you in the relevant Loan Documents before the Loan is consummated. No duplicate DST shall be charged where prohibited by law.

INTEREST

23. Before your Loan takes effect, Tonik will disclose the applicable interest rates to you as stated in the Loan Documents. You agree to pay the applicable interest rate, whether regular or discounted, as provided therein.

24. Unless Tonik specifies otherwise, the regular interest rate indicated in the Disclosure Statement shall apply to your Loan.

COOLING-OFF PERIOD

25. Subject to applicable BSP regulations and any exemptions provided therein, you shall be entitled to a period of two (2) banking days from the date of signing of these Loans Terms and Conditions and/or Loan Documents, whichever occurs later, during which you may cancel the Loan without penalty ("Cooling-Off Period"). However, Tonik may deduct or collect reasonable processing fees, DST, or other regulatory charges that may have already been incurred prior to cancellation. For the avoidance of doubt, this Cooling-Off Period does not apply to SILs.

26. Loan cancellation may only be processed by Tonik if the proceeds of the approved cash Loan have not yet been withdrawn or utilized by you.

27. Any cash Loan cancellation request must be submitted to Tonik's Customer Care department and/or through the Tendo Platform, as provided under the Inquiries and Customer Complaints section of these Loans Terms and Conditions.

28. For SIL cancellations, the refund and replacement policy of the partner merchant where the product was purchased shall apply. You shall be responsible for fully complying with the partner merchant's refund and replacement procedures.

29. Tonik will cancel all remaining settlements related to the SIL only after confirmation by the partner merchant that the purchased product has been returned and the refund has been processed.

PAYMENT AND REPAYMENT [not applicable to Payroll Loans]

30. You agree to pay each Monthly Installment, including, but not limited to, any applicable charges and fees, on or before the relevant Payment Date. Payments shall be made by ensuring that you have sufficient and available funds in your Tonik Savings Account or any linked bank, or e-wallet account. All Loan payments shall be made in full, without any deductions for bank fees or charges, which shall be for your sole account. Tonik's determination of the amounts due on each Payment Date, including but not limited to the principal, interest, premiums, fees, penalties, and other charges, shall be final and binding, except in cases of manifest error in computation.

31. The Monthly Installments, which include all applicable fees and charges as stated in the Loan Documents, will be automatically debited from your Tonik Savings Account or any linked bank or e-wallet account on each Payment Date. This shall be without the need for further notice or demand from Tonik. You undertake to maintain sufficient funds in your Tonik Savings Account to ensure the successful payment of the Loan, including all interest, premiums, fees, penalties, and other charges due under the Loan Documents.

32. You may add funds or "top up" your Tonik Savings Account through electronic transfers or through other available payment channels, such as, but not limited" to, debit cards, e-wallets, transfers from other banks, or payments at designated remittance centers.

33. You shall make all Loan payments only through Tonik's authorized payment channels, as listed on Tonik's official website, mobile app, in-app payment facilities, or other official communications. Payments made through unauthorized, channels or to individuals or who are not authorized to receive payments on Tonik's behalf, including Tonik's promoters, employees, agents, or personnel of Tonik's partner merchants, shall not be recognized as Loan payments. You will be responsible for any resulting loss, delay, additional charge, or damage arising from such transactions.

34. You understand, agree, and undertake that you will not close your Tonik Savings Account until you have fully paid all amounts due under the Loan, including all principal, interest, premiums, fees, charges, and penalties.

35. If Tonik cannot debit any Monthly Installment from your Tonik Savings Account or any linked bank or e-wallet account on the scheduled Payment Date for any reason, such as, but not limited to, insufficient funds or other debit failure, you shall be considered in default. Without prejudice to other rights under the Loan Documents or Applicable Law, Tonik may collect and/or directly debit the unpaid Monthly Installment from your Tonik Savings Account and/or any linked bank or e-wallet account on the next or succeeding days until all amounts due are fully paid.

36. If any payment you make is insufficient to cover the total amount due on the applicable Payment Date or any other given date, Tonik may, at its discretion and in accordance with its internal policies, apply your payment in the following order:
    1. to applicable taxes (if any);
    2. to interest;
    3. to any monthly service fees (including, for the avoidance of doubt, and where applicable, VAS Product fees or premiums such as Payment Holiday fees, and any insurance-linked or other VAS Product fees, whether standalone or bundled, and all mortgage insurance);
    4. to the principal amount due;
    5. to penalty fees or penalty interest; and
    6. to other charges.

    In the case of bundled service packages, Tonik shall inform you of the specific provider of each included product, and you shall be given the option to choose accordingly.

37. You may pre-terminate your Loan at any time by making an early full repayment of your Loan through the Tonik Application. You may also submit a Loan pre-termination request to Tonik's Contact Center through the channels stated in the Inquiries and Customer Complaints section of these Loans Terms and Conditions. Tonik will process your request upon receipt.

38. Pre-termination Loan requests shall be subject to review and applicable bank charges, as specified in the Disclosure Statement. Tonik will inform you of the result of your request within three (3) banking days from the date of request submission.

LATE PAYMENT FEES AND PENALTIES

39. You agree to pay the late payment fee specified in the Loan Documents if you are unable to fully pay your Monthly Installment on the Payment Date.

40. Tonik will collect the late payment fee, applicable penalties, and interest starting from the day after the missed Payment Date, and on any date thereafter, until all overdue amounts have been fully settled.

EVENTS OF DEFAULT

41. At Tonik's sole discretion, you shall be considered in default, regardless of the reason and whether such default is voluntary or involuntary, if any of the following events occurs:
    1. You fail to pay any amount due to Tonik, including principal, interest, fees, or any other sums payable under these Loans Terms and Conditions, and any Loan Document, on or before the due date and in the manner set out therein;
    2. You provide any false, incorrect, or misleading information, representation, or warranty in connection with the Promissory Note, these Loans Terms and Conditions, other Loan Documents, and any other documents required by or submitted to Tonik;
    3. You fail to perform or comply with any term, obligation, or covenant contained in these Loans Terms and Conditions, the Loan Documents, or any other contract or evidence of indebtedness with Tonik;
    4. You fail to pay, default in payment, or fail to perform or comply with any term, obligation or covenant under any contract for borrowed money with any other bank, person, corporation, financial institution, or entity;
    5. You violate any term or condition of any contract with any bank or other person, corporation, or entity, for the payment of borrowed money, or if any event of default occurs under such contract(s);
    6. You become insolvent or unable to pay your debts or other payment obligations when due, or commit or suffer any act of insolvency, which includes: (i) the filing of a petition by or against you in any insolvency, administration, receivership, suspension of payment, or similar proceeding; (ii) making a general assignment for the benefit of your creditors; (iii) admitting in writing your general inability to pay your debts or other payment obligations; (iv) the issuance of any court order, judgment, or administrative ruling confirming your insolvency or inability to pay; (v) the appointment of a receiver or trustee to take possession of a substantial portion of your properties; or (vi) your taking of any action to authorize any of the foregoing;
    7. You apply for voluntary relief, receive involuntary relief, or become the subject of involuntary proceedings under any bankruptcy or insolvency law;
    8. You die, or become legally incapacitated;
    9. Any of your real or personal properties becomes the subject of garnishment, attachment, levy, expropriation, seizure, execution, or any similar legal process;
    10. You contest the validity or enforceability of the Promissory Note, these Loans Terms and Conditions, or any of the Loan Documents, or you deny in writing your general liability under any of them;
    11. Tonik determines, based on reasonable grounds, that you have fraudulently misrepresented any information or submitted any falsified documents in relation to your Loan application; or
    12. Any other event or circumstance arises or transpires that, in Tonik's reasonable opinion, may adversely affect your ability to perform or pay your obligations as they become due under the Loan.

CONSEQUENCES OF DEFAULT

42. If an Event of Default occurs, Tonik shall have the right, acting in good faith and in accordance with Applicable Law, regulations, and its internal policies, to declare the entire unpaid principal amount of the Loan, together with all accrued and unpaid interest, penalties and other charges, immediately due and payable. This shall be without the need for presentment, demand, protest, or any further notice, all of which you expressly waive. If you fail to comply with Tonik's demand for full payment of all outstanding obligations, Tonik shall have the full authority to take appropriate legal or remedial actions against you (or, if there are two (2) or more Borrowers, against all Borrowers), as provided under these Loans Terms and Conditions, the Loan Documents, or under Applicable Law, for the protection and enforcement of Tonik's rights and remedies

43. In case of default, and in addition to the principal amount, interest and late payment charges, you agree to pay the other applicable charges on the outstanding amount due as stated in the Loan Documents. These charges may include, but are not limited to:
    1. Liquidated damages;
    2. Collection fees;
    3. Attorney's fees;
    4. Cost and expenses of litigation; and
    5. Any other relevant charges.

    All of the above fees and charges are fully indicated in the Disclosure Statement and Amortization Schedule provided to you.

44. If you fail to pay the Loan, or any amount due under the Loan Documents, you hereby assign and transfer to Tonik any money, securities, real or personal property, or any other asset or thing of value that Tonik or any of its Affiliates may hold or control in your name, whether as a deposit, collateral or otherwise (the "Assigned Properties"). This assignment and transfer shall be without need of further notice or demand, and effective immediately upon such default. Tonik may apply these Assigned Properties to offset or settle your outstanding obligations in accordance with Applicable Law and regulations.

45. For this purpose, you consent, authorize, appoint, and irrevocably constitute Tonik your attorney-in-fact with full power and authority to:
    1. inquire into, claim, or assert its lien or legal interest over any of your Assigned Properties; and/or
    2. sell or dispose of such Assigned Properties, whether through public or private sale, and apply the proceeds to your outstanding obligations, in whole or in part.

    If there are no such Assigned Properties, or if the total outstanding balance of your Loan exceeds the proceeds from the sale, you agree to assign and deliver to Tonik any deposits or funds you may have with any other banks or financial institutions to the extent necessary to settle your obligations to Tonik. You also consent and authorize such banks or financial institutions to disclose to Tonik or its authorized representatives any relevant information relating to your deposits and/or placements, as may be required to enforce Tonik's rights under this provision.

46. You agree that in case of default, Tonik may, at its sole discretion, appoint or designate its representatives, agents, attorneys-in-fact, third-party collection agencies, or legal counsel (collectively, "Authorized Parties"), to perform any and all acts necessary to enforce its rights under the Loan and any security provided for it. You also consent to the disclosure of all relevant information related to your Loan or account to such Authorized Parties and agree to hold Tonik free and harmless against any and all damage, cost or liability arising from such lawful disclosure.

47. You further consent that Tonik may conduct collection activities, including, but not limited to, locating you or conducting field visits to your residential and/or office address. Tonik may, at its sole option, endorse the collection of the total outstanding balance of your Loan, including all applicable fees, penalties, and accrued interest, to an accredited collection agency in accordance with these Loan Terms and Conditions and applicable BSP regulations.

48. Pursuant to the provisions on Payment and Repayment, and without the need for prior notice, Tonik may offset the Monthly Installment Amount, including all applicable taxes, fees, and other charges, from your Tonik Savings Account, any linked bank or e-wallet account, or any of your Deposit Accounts (e.g., Stash and Time Deposit) that you currently maintain or may later create with Tonik. This shall continue until the entire total outstanding Loan and other fees and charges incurred have been fully settled.

49. For such purpose, you further unconditionally and irrevocably authorize Tonik to debit or set-off such amounts as may be necessary to implement the foregoing from any, some, or all of your accounts with Tonik and/or its Affiliates. To the extent that these actions involve the confidentiality or secrecy of bank deposits, accounts, placements, investments, and similar or related assets held by Tonik and/or Affiliates, you waive your rights in favor of Tonik and/or its Affiliates under the following laws: R. A. No. 1405 (Bank Secrecy Act of 1955), Section 55 of R. A. No. 8791 (The General Banking Law of 2000), R. A. No. 6426 (Foreign Currency Deposit Act of the Philippines of 1974), the DPA, and other relevant laws and/or regulations, including all amendments or supplements thereto. You also agree to hold Tonik, its Affiliates, and their respective directors, officers, employees, representatives, and agents, free and harmless from any and all liabilities, claims and/or damages arising from Tonik's and/or its Affiliates' exercise, or non-exercise, of any rights, remedies or authorities under this clause.

50. In the event of default, Tonik may contact you using any of the contact details you have provided, including but not limited to your mobile number, email address, social media accounts, or messaging apps, such as but not limited to, Viber, WhatsApp, Telegram, or other similar platforms.

51. If Tonik is unable to reach you for an unreasonable period, you acknowledge and agree that Tonik may use lawful skip-tracing methods to locate or reach you. These may include, but are not limited to, reaching out to your nominated references or contacts, conducting field visits, and other legitimate and legally permitted means of communication or verification. All collection and communication activities will be conducted in a fair, respectful, and lawful manner in line with applicable BSP and consumer protection regulations. Unless necessary to address fraud, account security, or other urgent matters, Tonik's collection calls to you shall be made only between 6:00 AM and 10:00 PM, including weekends and holidays.

CROSS DEFAULT

52. If an Event of Default occurs, Tonik shall have the right to recall and demand immediate repayment of all amounts you owe to Tonik under this Loan or any other credit facilities granted to you by Tonik.

DELINQUENCY

53. If you fail to pay the full amount due on any Payment Date, your account shall be considered delinquent.

54. In case of delinquency, you authorize Tonik to report and/or include your name, Loan details, and any other necessary information in the negative listings of any credit bureau, financial institution, industry association database, or other relevant regulatory body, in accordance with Applicable Law and regulations.

55. In addition, if your account becomes delinquent, you authorize Tonik to sell, assign, or transfer all or any portion of its rights, interests, benefits, or obligations under the Loan Documents to any person, entity, or third party, as permitted by law.

CUMULATIVE REMEDIES

56. The remedies provided in these Loans Terms and Conditions and in any Loan Document are exclusive. Each remedy is cumulative and may be exercised in addition to any other remedy provided in these Loans Terms and Conditions, the Loan Documents, or those available under law or equity.

AUTHORIZATION AND CONSENT

57. You authorize Tonik to obtain and verify the information collected from and/or through government agencies or third parties, including but not limited to banks, financial institutions, credit bureaus, financial industry associations, and/or financial industry bodies at any time during the term of your Loan. Pursuant to R. A. No. 9510 or the Credit Information System Act ("R. A. No. 9510") and its Implementing Rules and Regulations ("IRR"), you agree that Tonik is required and authorized to disclose, and may disclose from time to time, your basic credit data as defined under Section 4.4 of the IRR of R. A. No. 9510, and other relevant information to the Credit Information Corporation ("CIC") and/or the Negative File Information System of regulatory-accredited organizations, as may be necessary or required by Applicable Law, rules and regulations. You also consent to Tonik's conduct of background and verification checks, which may include, but are not limited to, reviews of your financial capacity, personal references, or any other legitimate purposes necessary for the processing, approval, or ongoing administration of your Loan. Tonik may use third-party vendors, service providers, partners, platforms, or applications to carry out these activities.

58. You represent and warrant that all third-party reference persons whose information you provide to Tonik are personally known to you, are of legal age, possess full legal capacity, reside in the Philippines, and have active local mobile numbers. You further confirm that you have secured their prior consent before submitting their names and contact details to Tonik. You also warrant that these persons have consented to be contacted by Tonik for verification purposes. You agree that Tonik may contact such reference persons in any of the following situations: (a) your account becomes delinquent; (b) in case of your default; (c) if Tonik is unable to reach you through your registered contact details; or (d) when Tonik finds it reasonably necessary to conduct additional verification or validation related to your Loan. You also authorize Tonik and your reference persons to share and exchange information with each other regarding the Loan, as may be reasonably necessary for verification, contact, collection, or any other lawful purposes.

59. Pursuant to applicable regulations and circulars issued by the BSP, the Anti-Money Laundering Council, and other relevant government and/or regulatory authorities, you waive the confidentiality of your client information for the purposes allowed under such regulations and circulars. Tonik is authorized to conduct random verification with the BIR to verify the authenticity of any and all income tax returns, financial statements, or other documents you have submitted. If any document is found to be false, fraudulent, or materially inaccurate, Tonik may terminate your Loan or any other credit facility granted on the basis of such document, and shall demand immediate repayment or settlement of all outstanding obligations. Tonik also reserves the right to seek legal remedies, including filing an action in court, to recover any loss or damage caused to Tonik by the submission of falsified or misleading documents.

60. You waive your rights under existing laws on confidentiality in favor of Tonik, the BSP, the proper courts, and other administrative or government agencies that may lawfully require the disclosure of your Loan, the Promissory Note, or any related information and documents. Such disclosure shall be made only as permitted or required by Applicable Law and regulations.

61. You authorize Tonik to use, assign, or include your Loan as part of its loan portfolio to serve as security or collateral for any loan, financing arrangement, or securitization transaction that Tonik may undertake with any local or international financing institution, in accordance with Applicable Law and regulations.

62. You agree that Tonik may, at its sole discretion, accept the use of digital signatures including, but not limited to, digital signature equivalents such as ticking an "I accept" or "I agree" checkbox as a valid form of customer agreement within the Tonik Application and/or the Tendo Platform for signing any documents made available to you. You acknowledge and accept that any document electronically or digitally signed by you shall be deemed valid, binding, and enforceable, and shall be treated as an official document issued by Tonik. In any proceeding arising from or related to such electronic document, you agree not to dispute or challenge its validity, enforceability, or due execution solely on the basis that it was digitally signed or electronically stored by Tonik. These documents shall remain valid, legally binding, and enforceable against you. Tonik reserves the right to enable or disable the digital signature feature at its sole discretion. Where Tonik enables such a feature, you will be informed of the minimum requirements necessary for its use, and you may only utilize this feature if you are able to meet such requirements. Tonik may, however, decide not to allow the use of digital signatures in your dealings with Tonik, at its sole discretion.

63. You consent to Tonik's collection, storage, processing, disclosure, and disposal of your Personal Information in compliance with the DPA, as well as Tonik's Data Privacy Statement and the Data Privacy Notice applicable to each product offering. This may include, but is not limited to, information such as your transaction and payment history. Such information may be shared with government agencies, financial institutions, credit bureaus, Affiliates, partners, and authorized third parties for legitimate business purposes, including: (a) evaluating your financial profile, preferences, and needs; (b) offering or recommending products and services that may be relevant to you from Tonik, its Affiliates, or its third-party partners; (c) conducting market research, analytics, and product development activities; (d) improving customer experience and service quality; (e) preventing fraud, ensuring security, and complying with anti-money laundering and other regulatory requirements; and (f) maintaining internal records, audits, and risk management systems in accordance with Applicable Law and regulations.

64. You agree and give your continuing consent to all authorizations contained in these Loans Terms and Conditions for as long as your Loan remains active, and for any future credit products that Tonik may offer to maintain or enhance your existing credit relationship. Such consent shall remain subject to the Bank's prevailing credit policies and all applicable regulatory requirements.

ASSIGNMENT

65. You shall not assign or transfer any of your rights or obligations under these Loans Terms and Conditions or the Loan Documents.

66. Tonik may, at any time and from time to time, sell, transfer, assign, or grant participation or sub-participation, in whole or in part, its rights, interests, benefits, and obligations under the Loan, these Loans Terms and Conditions, and/or the other Loan Documents, to any person or entity. This may be done without your prior consent or notice. The buyer, assignee, participant, or sub-participant shall, to the extent of their acquired interest, enjoy the same rights and protections that Tonik has under these Loans Terms and Conditions. For clarity, Tonik's rights and remedies remain enforceable even after an Event of Default has occurred.

67. Any sale, transfer, assignment, participation, or sub-participation by Tonik will not change your obligations under the Loan or these Loan Terms and Conditions. You must continue making all payments as scheduled, and Tonik will remain responsible for servicing and administering your Loan unless otherwise advised in writing. For your understanding, "participation" or "sub-participation" refers to standard financial arrangements that allow Tonik to share or transfer an interest in its rights under the Loan for risk-management or funding purposes, without transferring ownership of your Loan or altering your repayment terms.

68. In addition to any other assignment permitted under this Section, you acknowledge and agree that Tonik, whether by itself or together with its Affiliates or authorized third parties (collectively, "Lender Parties"), may sell, transfer, or securitize your Loan ("Securitization"). This may include pledging, mortgaging, and/or assigning the Loan as collateral, or issuing direct or indirect interests in the Loan through financial instruments such as asset-backed or collateralized loan obligations, or similar structures. You understand that in such cases, Tonik may act as the servicing or collecting bank on behalf of the Lender Parties throughout the Securitization. This Securitization may be rated by a duly recognized-rating agency in accordance with Applicable Law and regulations. You agree to cooperate with Tonik and the Lender Parties to facilitate any such Securitization by: (a) executing additional documents; and (b) providing relevant information, that may be reasonably requested by Tonik, the Lender Parties, or any rating agency in connection to the rating of the Loan or the Securitization. These actions will not affect your payment obligations or your rights under the Loan.

69. Without limiting the foregoing, and in line with Applicable Law, including but not limited to R. A. No. 11523 and its IRR, Tonik may assign, transfer, or sell any Non-Performing Loan or delinquent Loan to a duly registered SPV or FISTC. Any such transfer will not affect your rights and obligations under these Loan Terms and Conditions or any related Loan Documents.

70. If Tonik sells, transfers, assigns, or securitizes your Loan to another entity, such as an FISTC, SPV, or any authorized assignee, your obligations under these Loans Terms and Conditions and the Loan Documents shall continue until fully paid. You agree that: (a) you shall not claim or set-off any amount that Tonik may owe you against your outstanding Loan obligations; and (b) you shall continue to be responsible for paying your Loan in full under the same terms and conditions. Any such assignee or successor will respect your rights as a Borrower in accordance with Applicable Law and regulations.

71. If Tonik is acquired by another entity, or if your Loan is sold or transferred to another authorized financial institution or assignee, your obligations under these Loans Terms and Conditions and the Loan Documents shall continue until fully settled. In such cases, the acquiring or new entity will assume Tonik's rights under your Loan, and you agree to continue making payments and complying with the same terms and conditions. Tonik may assist in coordinating or facilitating the transition to ensure a smooth and orderly transfer. You also agree to follow reasonable instructions from Tonik or the acquiring entity regarding payment arrangements or documentation necessary to fulfill your Loan obligations in relation to the Loan and Loan Documents.

WAIVERS

72. No failure, omission, or delay by Tonik to exercise any right, power, privilege, or remedy under these Loans Terms and Conditions or the Loan Documents shall impair such right, power, privilege, or remedy, or it be construed as a waiver of it. Likewise, Tonik's waiver of any single breach or default shall not be deemed a waiver of any other or future default or breach. All rights and remedies available to Tonik, whether under the Promissory Note, these Loans Terms and Conditions, the Loan Documents, Applicable Law, or otherwise afforded to Tonik, shall be cumulative, and may be exercised together or separately, at Tonik's discretion. Any notice or demand made by Tonik in one (1) instance shall not entitle you to require the same notice or demand in similar or subsequent circumstances.

CONFIDENTIALITY AND DISCLOSURE OF INFORMATION

73. You agree to treat as confidential any information obtained from Tonik during the course of the Loan application or relationship with Tonik. This includes, without limitation, details about Tonik's Loan products and services, and any information relating to Tonik, its business, operations, processes, Affiliates, as well as Tonik's and its Affiliates' shareholders, directors, officers, employees, advisors, and agents. You undertake to keep all such confidential information in strict confidence and agree not to directly or indirectly disclose, or permit anyone else to disclose, any confidential information to any person or entity except when required by law or with Tonik's prior written consent.

COMMUNICATIONS AND DATA PRIVACY

74. You reaffirm your consent to, and agreement with, Tonik's Data Privacy Notice and Data Privacy Statement. These documents are deemed incorporated by reference into these Loans Terms and Conditions and govern the collection, use, processing, storage, sharing, disposal, and protection of your Personal Data in connection with your application for, and use of, Tonik's products and services.

75. You agree to provide true, complete, and accurate information about yourself, and if applicable, about any other person related to your Loan application, including any co-borrower, if any. You consent to Tonik's collection, processing, storage, verification, use, and/or disposal of this information pursuant to Tonik's Data Privacy Statement, and the terms, conditions, and permissions set out therein.

76. In addition to the consents, authorizations, and agreements stated in Tonik's Data Privacy Statement and Data Privacy Notice, you agree that the Personal Information collected from you may also be used for the following purposes:
    1. sending you updates, reminders, and notifications in relation to your Loan;
    2. conducting market research or studies to help Tonik improve its Loan products and customer experience;
    3. marketing Tonik's products and services, as well as those of its Affiliates, and Merchant-Partners as defined hereunder, including special offers, promotions or marketing initiatives, sent through push notifications, in-app calls and messages, email, SMS, Viber, WhatsApp, Telegram, telephone calls, social media, e-commerce platforms or other communication channels;
    4. enhancing Tonik's products and services through various activities, which include, but are not limited to, surveys, benchmarking, profiling, statistical analysis, planning, and research; and
    5. curating offers or recommendations for other products or services that are tailored to your needs, preferences, and profile.

77. In line with Tonik's Data Privacy Statement, and without limiting the permissions and consents you have already granted, you agree and consent for Tonik to collect, store, use, and share your Personal Information with its Affiliates, collection agencies, merchants, and co-branding and other strategic partners (such merchants and co-branding and strategic partners, collectively referred to as the "Merchant-Partners"). This consent remains valid for as long as your records and Personal Information are required and/or allowed by law to be retained and processed. Such retention may be for your protection, for Tonik's legitimate business interests and/or purposes, or to comply with regulatory requirements. These purposes also include but are not limited to: (a) accepting, reviewing, and processing your Loan application; (b) determining your eligibility for the Loan; and, (c) managing, servicing, granting, disbursing, monitoring, collecting, or enforcing your Loan, these Loans Terms and Conditions, and other Loan Documents.

78. In line with, but without limiting the foregoing, you:
    1. allow and authorize Tonik to use your Personal Information to disclose to, and verify information with, Tonik's agents and third-party service providers, the CIC, or any similar central monitoring entity or recipients as defined in R. A. No. 9510, which process information, transactions, services, or accounts, on behalf of Tonik;
    2. agree that Tonik, directly or through its Affiliates, agents, third-party service providers, and/or Merchant-Partners, may collect, retrieve, process, use, store, and dispose of your Personal Information, such as but not limited to, your name, age, photographs, fingerprints, other biometric data (e.g., facial recognition and voice recognition), mobile number/s, email address, mobile phone usage and device data, employment details, social media footprint, income, financial data, financial profile, credit standing, loan payment history, and other information provided in the application form. This information may be used for the purpose of reviewing and processing your Loan application, and enforcing and defending Tonik's rights and remedies under the Loan Documents;
    3. consent to the collection of your Personal Information from yourself, any co-borrower(s), if applicable, or other Personal Information Controllers such as, but not limited to, telecommunications companies (e.g., Globe Telecom, Inc., SMART Communications, Inc.), for credit scoring purposes. "Personal Information Controller" means any person or organization that decides how and why your personal information is collected, used, or shared;
    4. consent to the sharing of your Personal Information, such as mobile number, email address, name, device data, IP address, and address, with a credit scoring service provider for credit investigation, credit scoring (including telco score), data analytics, and data profiling, which includes the regular updating of your credit score; and
    5. agree that Tonik may contact and communicate with your co-signor(s), relatives, friends, payees, beneficiaries, attorneys, attorneys-in-fact, guarantors, and, employees or officers of your employer only when necessary and for lawful purposes, such as, but not limited to, confirming your current address, contact details, or employment, or delivering notices or documents required under these Loan Terms and Conditions. Tonik may obtain the contact details of such persons from you or, when allowed by law, from publicly available sources such as social media or online directories, but shall use such Personal Information solely for verification or location purposes and without disclosing the amount, status, or nature of your Loan, and such other legitimate purposes set out in these Loans Terms and Conditions and Tonik's Data Privacy Statement. Tonik and its representatives shall conduct all such communications in accordance with the SEC's Rules on Unfair Debt Collection Practices and applicable privacy laws, and shall always act in a professional, lawful, and respectful manner.

79. You waive the confidentiality of your Personal Information for each of the purposes set out in these Loans Terms and Conditions and in Tonik's Data Privacy Statement.

80. Throughout the collection, use, processing, and disposal of your Personal Information, Tonik shall uphold all your rights under the DPA. These include: (a) your right to be informed about how your data is collected, used, stored, and shared; (b) your right to object to the processing of your Personal Information, when legally appropriate; (c) your right to access the Personal Information that Tonik holds about you; (d) your right to request correction or updating of inaccurate or outdated data; (e) your right to request deletion or blocking of your data, when permissible by law; (f) your right to file a complaint with the National Privacy Commission for any violation of your data privacy rights; and (g) your right to claim damages for any proven violation of these rights. Entities to whom Personal Information may be shared will also respect these rights.

AUTOMATED CREDIT ASSESSMENT AND USE OF ARTIFICIAL INTELLIGENCE (AI)

81. Tonik may use automated systems and artificial intelligence (AI) models for purposes which may include, among others, assessing your Loan application, evaluating your creditworthiness, determining Loan pricing, managing Loan performance, and supporting the collection of payments. These models and tools are carefully reviewed and regularly monitored to ensure that they remain fair, accurate, and compliant with Tonik's internal credit and risk policies as well as Applicable Law.

82. Tonik may also use AI tools to send payment reminders, segment accounts, and analyze repayment behavior to help manage your account efficiently. However, any material action and important decision that could affect your rights or obligations, such as Loan acceleration, legal escalation, or other material account measures, will always be reviewed and approved by authorized Tonik personnel.

83. Tonik follows strict governance and monitoring processes for all AI and automated systems to ensure they operate accurately, fairly, and securely. These systems are periodically tested and updated to avoid bias, systemic errors, or other unfair outcomes, including in connection with loan management and payment collection activities.

SEVERABILITY

84. If any provisions of these Loans Terms and Conditions, or any document executed in connection with them, including any other Loan Document, is found by a court or regulator with proper authority to be void, invalid, illegal, or unenforceable under any Applicable Law, the remaining provisions or such document shall continue to be in valid, binding, and fully enforceable.

GOVERNING LAW AND VENUE OF ACTIONS

85. These Loans Terms and Conditions and all related Loan Documents shall be governed by and interpreted in accordance with the laws of the Republic of the Philippines. You irrevocably agree that any legal action, suit, or proceeding arising out of or relating to these Loans Terms and Conditions shall be filed exclusively with the proper courts of Pasig City, which shall have jurisdiction over you and if applicable, any of your co-borrower(s). You and any of your co-borrower(s) expressly submit to the jurisdiction of such courts, in respect of your properties or assets, and waive any objections to their venue or jurisdiction. This agreement, however, shall not limit or be interpreted to limit Tonik's rights to initiate legal proceedings or enforce any judgment in another venue or jurisdiction where you or your assets may be located.

MISCELLANEOUS

86. Tonik may update, add to, or change these Loans Terms and Conditions ("Changes") from time to time. You shall be notified of such Changes at least sixty (60) calendar days before their effectivity. Tonik will provide both: (a) individual notice through your preferred communication channel, as indicated during your onboarding or subsequently updated by you. If no preference has been specified, Tonik may send the notice through any method Tonik deems appropriate and suitable before the effective date of the Changes; and (b) public notice through the Tonik's official website, Tonik-owned social media accounts, and/or other public communication channels permitted under applicable regulations.

87. For the avoidance of doubt, the introduction of a new Loan product or changes to the eligibility criteria and requirements for future Loan applications will not be considered Changes under this Section, provided they do not affect existing Loans. Any revised eligibility criteria and requirements will apply only to applications submitted on or after their effective date and will not alter the Loan Documents of a previously approved Loan.

88. Subject to the sixty (60) calendar-day notice period, any amendment, revision, or modification to these Loans Terms and Conditions will take effect and become binding on you once Tonik announces it through your registered communication channels or other reasonable means of individual and public notices. If you do not agree with the Changes, you may choose to terminate your Loan by fully paying your total outstanding balance and sending Tonik a written notice within thirty (30) calendar days from the date the Change was communicated. For the avoidance of doubt, if Tonik does not receive such notice within this period, your continued use of the Loan or failure to object shall be treated as your acceptance of the Changes to the Loans Terms and Conditions.

INQUIRIES AND CUSTOMER COMPLAINTS

89. If you have any questions, concerns, feedback, or inquiries about these Loans Terms and Conditions or any aspect of your Loan, you may contact Tonik through any of the following channels:

Contact Center Hotline:                  +63 253222645

Contact Center Email Address:    [email protected];  [email protected].

90. You acknowledge and declare that the terms, authorizations, covenants, undertakings, consents, and waivers in these Loans Terms and Conditions have been fully explained to you. You further confirm that you have read, understood, and freely agreed to be bound by all of them. You also acknowledge, agree, and declare that these Loans Terms and Conditions are binding upon you, you heirs, successors, and assigns. Tonik shall be entitled to rely on and enforce these terms against you and your properties or assets in accordance with Applicable Law.

91. Tonik is regulated by the BSP. For more information, you may visit the BSP website at https://www.bsp.gov.ph.

PART II. ADDITIONAL PROVISIONS FOR EACH TYPE OF LOAN

This Part II contains additional terms and conditions that apply to the specific Loan you have applied for and/or may incur under these Loans Terms and Conditions.

A. ADDITIONAL PROVISIONS APPLICABLE TO BNPL LOAN OR SIL

DEFINITIONS

In addition to the terms defined in Part I:

1. "Merchant" refers to any business or entity that sells appliances, equipment, products, or services and has an existing agreement with Tonik to offer BNPL Loans or SILs to its customers.

ELIGIBILITY AND APPLICATION

2. In addition to the requirements set out in the Eligibility and Application section of Part I, to apply and qualify for a BNPL Loan or SIL, you must also meet Tonik's prescribed internal credit risk policies and standards for this specific product type, which are in accordance with existing BSP regulations.

OBLIGATIONS AND COVENANTS

3. You further agree that, if your Loan is approved, Tonik has the sole option and discretion to either credit the Loan proceeds to your Tonik Savings Account or pay the proceeds directly to Tonik's partner Merchants.

PAYMENT AND REPAYMENT

4. You authorize Tonik to automatically debit (auto-debit) the applicable fee or premium for any VAS Product you have enrolled in from your Deposit Account. You also authorize the automatic renewal of such VAS Product in accordance with its Specific VAS Terms, unless you submit a written request for its termination within the period and in the manner specified in the Specific VAS Terms. Where applicable, the fee or premium shall be included in your Monthly Installment amount, which is subject to the auto-debit arrangement under your BNPL Loan or SIL. Otherwise, the fee or premium will be or reflected in the relevant statement or record for your Tonik Savings Account.

5. You must make your Loan payments only through Tonik's duly authorized payment channels, as listed on Tonik's official website, mobile app, in-app facilities, or other verified communications issued by the Bank. Any payment made through unauthorized, unofficial, or unverified third parties, including but not limited to, individuals or agents claiming to represent Tonik, or its promoters or other personnel, shall not be recognized as valid, and any resulting loss, delay, or consequence shall be your sole responsibility.

B. ADDITIONAL PROVISIONS APPLICABLE TO LOAN SECURED WITH A MORTGAGE

DEFINITIONS

In addition to the terms defined in Part I:

6. "Deed of Mortgage" means the deed of real estate mortgage executed or to be executed by you, and, if applicable, your Co-Borrowers and/or Property Co-Owner(s), under the Loan with Mortgage, in such form and with such contents as may be acceptable to Tonik;

7. "Loan Documents," as defined in Part I, shall be deemed to include the Deed of Mortgage;

8. "Property" means any type of real property, such as but not limited to, agricultural, industrial, commercial, or residential land, with or without improvements, that serves as the security or collateral for the Loan with Mortgage, as properly described in the corresponding Deed of Mortgage executed between you, your Co-Borrowers and/or Property Co-Owner(s), whichever is applicable, and Tonik;

9. "Co-Borrower" refers to any individual who jointly applies for, signs, or becomes jointly and severally liable with you for the repayment of the Loan. A Co-Borrower shares full legal responsibility for all obligations under the Loan and the Loan Documents, including payment of amounts due and compliance with all terms and conditions; and

10. "Property Co-Owner" refers to any individual who co-owns the Property offered as security for the Loan with Mortgage and who executes the Deed of Mortgage together with you to constitute the mortgage over the Property in favor of Tonik. The Property Co-Owner may or may not be a Co-Borrower but must consent to and sign the Deed of Mortgage to acknowledge the encumbrance of their ownership interest in the Property.

ELIGIBILITY AND APPLICATION

11. Notwithstanding the provisions in the Eligibility and Application section in Part I, to apply and qualify for a Loan with Mortgage, you must: (a) own a Property as defined in number 3 of the previous section (Definitions), located within Tonik's acceptable areas as specified in the Loan Application Form. The Property must be suitable and acceptable as collateral for the Loan; (b) have a valid and existing Original Certificate of Title, Transfer Certificate of Title, or Condominium Certificate of Title, whichever is applicable, registered in your name and, if applicable, in the name of your Property Co-Owner(s). The title must be free from any liens or encumbrances; and, (c) if you, and if applicable, your Property Co-Owner(s), are married, and your spouse is not a Co-Borrower ("Spouse"), your Spouse (or "each Spouse") must also meet the same qualifications listed in items (a) to (b) above. Your Spouse will also be required to give consent to the mortgage and related Loan Documents as required by law. You must also meet Tonik's prescribed internal credit risk policies and standards for this specific product type, which are in accordance with existing BSP regulations.

12. Before Tonik releases your Loan, you, and if applicable, your Property Co-Owner(s), and if married, your Spouse or each Spouse, must personally appear at Tonik's designated closing center, to: (a) submit all the additional documents; and (b) physically sign these Loans Terms and Conditions, the Deed of Mortgage, and such other Loan Documents, as Tonik may require.

13. In addition, before the Loan is released, and for every renewal of the Loan, you and, if applicable, your Property Co-owner(s), must obtain a Mortgage Redemption Insurance and a Property Insurance. A Mortgage Redemption Insurance is an insurance policy that pays off the remaining Loan balance in the event of your death or Total and Permanent Disability during the term of the Loan. Meanwhile, a Property Insurance is an insurance policy that protects the mortgaged Property against loss or damage caused by events such as fire, earthquake, or other covered risks.

14. Both insurance policies must be secured from insurance company/ies acceptable to Tonik and under such terms and conditions as may be approved by Tonik. These insurance policies should name Tonik as the beneficiary and must remain valid and effective for the entire duration of your Loan. If you and, if applicable, your Property Co-owner(s), choose to get these insurance policies from Tonik-accredited providers, the premium for the first (1st) year will be automatically deducted from your Loan proceeds. Renewal premiums for the succeeding years, depending on the term of your Loan, shall be paid in lump sum on or before each anniversary date. If you, and if applicable, your Property Co-Owner(s), choose to get these insurance policies from other providers, you shall submit to Tonik a copy of the insurance policies, proof of premium payments, and other relevant documents which Tonik may reasonably require from time to time.

15. You and, if applicable, your Property Co-owner(s) and your Spouse or each Spouse, agree and irrevocably appoint Tonik as your attorney-in-fact, with full authority to act on behalf of you, your Spouse, and, where applicable, your Property Co-owner(s) or other Borrower(s), to: (a) collect any insurance proceeds or indemnities payable under the Mortgage Redemption Insurance or Property Insurance; and (b) apply such proceeds, in whole or in part, to the payment of your Loan.

16. If you and, if applicable, your Property Co-owner(s), are married, your Spouse, or each Spouse, agree to be bound by and consents to these Loans Terms and Conditions and all other Loan Documents, and undertakes to comply with them. For clarity, and without limiting the foregoing:
    1. under the Sections entitled "REPRESENTATIONS AND WARRANTIES," your Spouse shall be deemed to make the same representations and warranties as you. All references to the "Borrower" in the said relevant sections shall include the Spouse; and
    2. if any of the events enumerated under the Section entitled "EVENTS OF DEFAULT" occurs to your Spouse (for example, if any of your Spouse's properties becomes subject to garnishment, attachment, levy, expropriation, seizure, execution, or other similar legal process), such event shall also be considered as an Event of Default under your Loan Documents. For this purpose, all references to the "Borrower" in the said section shall also include the Spouse.

17. Together with your Spouse, you jointly and severally covenant and undertake, in favor of Tonik, to:
    1. pay Tonik, on demand, all amounts that may now or in the future become due and payable under the Loan Documents;
    2. perform and comply with all covenants and obligations under the Loan Documents; and
    3. observe and be bound by the terms and conditions set out in the Loan Documents.

18. You and, if applicable, your Property Co-owner(s), represent and warrant that your Spouse, or each Spouse, is fully aware of, and has agreed to be bound by these Loans Terms and Conditions and all other Loan Documents. Your Spouse or each Spouse is likewise deemed to have made the same representations and warranties, and to have undertaken the covenants and undertakings set out in these Loans Terms and Conditions and the other Loan Documents. Furthermore, you and, if applicable, your Property Co-owner(s), represent and warrant that your Spouse, or each Spouse, has irrevocably authorized you to act for and on behalf in all matters relating to the Loan. This includes, without limitation, the authority to: (a) send and receive notices, demands, and other communications to and from Tonik and third parties; and (b) sign, execute, and deliver agreements, supplements, amendments, documents, and other papers for and on behalf of your Spouse, or each Spouse.

REPRESENTATIONS AND WARRANTIES

19. In addition to the representations and warranties contained in Part I and the Deed of Mortgage, you and, if applicable, your Property Co-owner(s), and/or your Spouse, or each Spouse, further represent and warrant that:
    1. you and/or your Property Co-owner(s) are the owner of the Property and have full power and authority to mortgage or encumber it;
    2. the Property is not involved in any legal action, suit, proceeding, or official investigation before a court, arbitral tribunal, or other government body that is pending or threatened against, or affecting the Property;
    3. the Property is free and clear from any legal claims, liens, encumbrances, charges, or any other restrictions of whatsoever nature;
    4. you and/or your Property Co-owner(s) shall continue to pay all real property taxes and the applicable homeowner's or condominium association/corporation charges due on the Property for the duration of the Loan; and
    5. if the Transfer Certificate of Title or Condominium Certificate of Title, whichever is applicable, covering the Property is registered in your name and your Spouse's name (e.g., "[Borrower] married to [Spouse's name]") and, if applicable, your Property Co-owner(s) and their respective Spouse(s), if married, you and your Property Co-owner(s) further represent and warrant that your respective Spouse(s) are fully aware of, and have consented to, your application for the Loan with Tonik. You and, if applicable, your Property Co-owner(s), also agree to immediately deliver, from time to time upon Tonik's request, the written proof of such consent from your respective Spouse(s).

OBLIGATIONS AND COVENANTS

20. In the event of your death or permanent disability, and if applicable, your Property Co-owner(s) or your Spouse, or each Spouse, and/or if the Property is lost or damaged, (a) the outstanding principal balance of the Loan shall be paid in full to Tonik as the primary beneficiary of the Mortgage Redemption Insurance and Property Insurance; (b) any excess insurance proceeds shall be paid to you, your Property Co-owner(s), Spouse(s), or your respective secondary beneficiary/beneficiaries; and (c) all such payments should be coursed through Tonik.

21. If the Property is partially lost or damaged, the insurance provider shall pay Tonik or compensate you and, if applicable, your Property Co-owner(s), and/or your respective Spouse(s) for any partial loss or damage under the applicable insurance policy. This compensation shall be subject to Tonik's prior approval.

22. In accordance with Part I of these Loans Terms and Conditions, if an insurance claim has been filed for the loss or damage of the Property, Tonik may, at its sole discretion, suspend or put on hold the automatic direct debit arrangement of your payments while the claim is being processed. Once Tonik receives the payment from the Mortgage Redemption Insurance and/or Property Insurance, the insurance proceeds shall be applied to your Loan. Tonik shall give you with a copy of the updated remaining Loan balance. The automatic direct debit arrangement shall then resume on the next Payment Date.

23. You agree and acknowledge that Tonik has the right, but not the obligation, to register the mortgage over the Property with the appropriate Registry of Deeds in the Philippines. You and, if applicable, your Spouse, undertake to execute and perform all acts, deeds, registrations, filings, deposits and other formalities as maybe necessary or reasonably required to give full effect to the mortgage, ensuring its enforceability against you and any third party.

24. If the Loan with Mortgage will be renewed for one (1) year or more, the renewal premiums and/or fees for the Mortgage Redemption Insurance and Property Insurance will be debited from your Tonik Savings Account on the Payment Date immediately prior to the expiration of the relevant insurance policy/ies, or on any date thereafter until such renewal premiums and/or fees are paid in full. If the balance in your Tonik Savings Account is insufficient, Tonik may consider you in default.

ADDITIONAL COLLATERAL

25. If the Property is destroyed, whether wholly or partially, or if Tonik determines that the physical condition or the market value of the Property has deteriorated or diminished for any reason, including force majeure, or if the Property becomes the subject of expropriation proceedings, in whole or in a part, Tonik shall have the right to demand that you: (a) immediately pay the Loan in full; or (b) promptly provide additional properties of sufficient value, quantity, and quality acceptable to Tonik ("Additional Collateral"). The Additional Collateral shall be treated as part of the Property under the Loan Documents, and the term "Property" shall include the Additional Collateral without needing further action. However, Tonik may require you, from time to time, to promptly execute, deliver and register, at your own expense, any instruments and documents, including, without limitation, any additional or supplemental mortgage document or agreement, or any other actions Tonik reasonably deems necessary to: (a) perfect, preserve and protect the security interest over the Additional Collateral and Tonik's rights thereto; and/or (b) enable Tonik to fully exercise and enforce its rights and remedies over the Additional Collateral or any part thereof. For clarity, if you fail to provide the Additional Collateral to Tonik's satisfaction, this shall constitute a breach of the Loan Documents, and you shall be considered in default.

CONSEQUENCE OF DEFAULT

26. As an additional remedy, Tonik has the right to exercise and enforce its rights under the Deed of Mortgage.

C. ADDITIONAL PROVISIONS APPLICABLE TO TONIK SOLAR LOAN

27. If you avail of a Tonik Solar Loan secured by a Solar Energy System under a Security Agreement, you acknowledge and agree that, upon an Event of Default, Tonik may, directly or through its duly authorized representatives, agents, or third-party service providers, including the Solar Energy System Provider, recover possession of the Solar Energy System in accordance with the Security Agreement, the other Loan Documents, and Applicable Law. You agree to reasonably cooperate with Tonik and its authorized representatives in facilitating such recovery.

D. ADDITIONAL PROVISIONS APPLICABLE TO LOANS LINKED TO A SALARY CARD, OR OTHER BANK OR E-WALLET ACCOUNT

DEFINITIONS

In addition to the terms defined in Part I:

28. "Salary Bank Account" means the employment payroll account held by you at any BSP-registered bank in the Philippines;

29. "Salary ATM Bank" means the BSP-registered bank where you have your Salary Bank Account and Salary ATM Card; and

30. "Salary ATM Card" means the ATM debit card issued in the Philippines that is linked to your Salary Bank Account.

ELIGIBILITY AND APPLICATION

31. In addition to the eligibility requirements under Part I of these Loans Terms and Conditions, to apply and qualify for this Loan, you must have either: (a) a valid and active locally-issued 3DS-enabled Salary ATM Card, or (b) an active account with another bank or e-wallet provider, which Tonik accepts as a payment method for the Loan. You must also meet Tonik's prescribed credit risk policies and standards for this specific product type, which are in accordance with Applicable Law and existing BSP regulations.

PAYMENT AND REPAYMENT

32. The Monthly Installment will be automatically debited from your linked Salary Bank Account, or from another linked bank or e-wallet account, on each Payment Date as reflected in the Disclosure Statement. No further notice or demand from Tonik will be required. The debited payment will be transferred to your registered Tonik Savings Account, from which the amounts will be debited on the Payment Date. You should ensure that there are sufficient funds in your Salary Bank Account, or other linked bank or e-wallet accounts to successfully collect the Monthly Installment. You undertake to maintain sufficient funds in your Tonik Savings account to ensure that the Loan, interest, premiums, fees, penalties, and charges are successfully paid according to the Loan Documents.

33. Before the Loan is released, you will choose your monthly Payment Date based on your payroll schedule. This will be reflected in the Disclosure Statement for the Loan. Once you select a payment date, and unless Tonik provides further notice, you will not be able to change the due date.

34. If your Salary ATM Card or other linked bank or e-wallet account, is deactivated, or a new Salary ATM Card or other bank or e-wallet account is issued or created (e.g., if your Salary Bank Account changes due to a job transfer), you must: (a) update your account details and link the new Salary ATM Card or other bank or e-wallet account for the Loan; and (b) submit an updated Direct Debit Form and any other necessary documents. If you cannot get a new Salary ATM Card or other bank or e-wallet account, or while you are updating your account details, you must top up your Tonik Savings Account so that the Monthly Installments can be debited from your Tonik Savings Account in accordance with the relevant provisions of the Section on Payment and Repayment of Part I.

35. At Tonik's sole discretion, and subject to its future determination, the applicable fees and charges due may be deducted from your Salary Bank Account or other linked bank or e-wallet account. If Tonik is unable to debit these fees and charges from your Salary Bank Account or other linked bank or e-wallet accounts for reasons such as, but not limited to, insufficient funds, Tonik shall have the right to collect and/or directly debit these applicable fees and charges from your Tonik Savings Account.

36. You agree that the authorization for automatic direct debit from your Tonik Savings Account, linked Salary Bank Account, or other bank or e-wallet account shall remain effective even if an unfortunate event, such as your death or permanent disability, occurs. This authorization will stay active until Tonik receives a written notice of such an unfortunate event.

E. ADDITIONAL PROVISION APPLICABLE TO AN UNSECURED CASH LOAN

37. While an Unsecured Cash Loan is not secured by a mortgage or any other collateral, you acknowledge and agree that Tonik has the right to automatically debit your Monthly Installments from your Tonik Savings Account. You must also meet Tonik's prescribed credit risk policies and standards for this specific product type, which are in accordance with existing BSP regulations.
38. Additionally, Tonik may have certain rights over your Assigned Properties, such as your bank account or funds, to ensure payment of such Unsecured Cash Loan. These rights will only be exercised in accordance with the provisions as outlined in Part I of these Loans Terms and Conditions.

F. ADDITIONAL PROVISIONS APPLICABLE TO PAYROLL LOANS

39. Notwithstanding the requirements set out in the Eligibility and Application section in Part I of these Terms and Conditions, to apply and qualify for a Payroll Loan, you must: (a) be an employee of an employer, or a consultant of a company, that has an existing partnership with Tendo (the "Partner Company"); (b) be at least eighteen (18) years old at the time of the Loan application and not more than sixty-five (65) years old upon Loan maturity. Tonik may verify your age and decline your Loan application or restrict access to the Payroll Loan if you do not meet the applicable age requirements; (c) if you are a foreign national, have a minimum remaining period of authorized stay of twelve (12) months in the Philippines at the time of the Loan application, as evidenced by a valid visa or other immigration documents acceptable to Tonik. Your Loan maturity date must not be later than the expiration date of your authorized stay in the Philippines; and (d) submit a Loan application through the Tendo Platform.

    Opening a Tonik Savings Account is not required for a Payroll Loan. You must also meet Tonik's prescribed credit risk policies and standards for this specific product type, which are in accordance with Applicable Law and existing BSP regulations.

40. Payroll Loan disbursements shall be credited to the bank, digital wallet, or other beneficiary accounts you nominate in the Tendo Platform.
41. Notwithstanding the Payment and Repayment provisions in Part I of these Loans Terms and Conditions, your Payroll Loan shall be repaid through payroll deductions made by the Partner Company, as your employer. By applying for a Payroll Loan, you irrevocably authorize the Partner Company to deduct the amounts due directly from your salary, final pay, including any amounts payable upon your resignation, retirement, termination, redundancy, or other separation from employment, 13th month pay, statutory and seasonal bonuses, and other compensation and benefits to the extent permitted by Applicable Law and regulations. This authorization covers deductions that may be made on a weekly, bi-monthly, or monthly basis. Priority shall be given to Tendo Payroll Loan repayments over any other deductions, including those relating to loans from other banks or financial institutions, if any.
42. (A) Non-payment of your Payroll Loan installment when due; (b) submission of false or misleading information in connection with your Loan application or Loan Documents; or, (c) termination of your employment, resignation, retirement, redundancy, or any other form of separation with the Partner Company shall be deemed a breach of the Loan Documents, and you shall be considered in default. Upon default, (a) your entire outstanding Loan obligation shall immediately be accelerated, and become immediately due and payable; (b) you shall be liable for any applicable interest, fees, and late payment penalties; and (c) Tonik shall initiate collection and recovery actions, including legal proceedings and reporting to credit bureaus.
43. If your employment with the Partner Company ends due to resignation, retirement, termination, redundancy, or any other form of separation, your outstanding Payroll Loan balance shall become immediately due and payable. You irrevocably authorize the Partner Company to deduct the total outstanding Loan amount from your final pay and remit them to Tonik, to the extent permitted by Applicable Law. This authorization covers unpaid salary or wages, prorated 13th month pay, cash conversion of unused leave credits, separation or redundancy pay, retirement pay or benefits, seasonal and statutory bonuses, incentives, commissions, allowances, tax refunds, and other compensation or benefits payable to you upon or in connection with your separation from employment. If your final pay is insufficient to settle your outstanding Payroll Loan balance, you shall remain liable for the unpaid amount. Tonik shall collect the remaining balance directly from you or exercise any other collection and recovery remedies available under these Loan Terms and Conditions, the Loan Documents, and Applicable Law. The Loan Documents for the Payroll Loan shall remain valid and enforceable until all obligations, including fees and penalties, are fully repaid even if you separate from the Partner Company, regardless of the reason for such separation.
44. You acknowledge that Tendo and its operators act solely as facilitators of the Payroll Loan product issued by Tonik and are not liable for Loan repayment or the Partner Company's obligations on salary deductions.
45. You also acknowledge that if a Payroll Loan is issued via a partner-merchant in the form of purchased goods, at no instance shall both Tendo and Tonik be responsible for the quality, delivery, or fulfillment of the goods purchased. Such partner-merchant shall assume full and sole responsibility for any issues related to such goods.
46. All customer service and complaint management related to the Payroll Loan shall be coursed only through the Tendo helpdesk via [email protected].

PART III. SPECIAL PROVISIONS FOR VALUE-ADDED SERVICES PRODUCT ("VAS PRODUCT")

1. This Part III sets out the terms and conditions applicable to VAS Products offered in connection with a Loan. The specific coverage, benefits, eligibility criteria, exclusions, fees or premiums, and other product-specific conditions shall be set out in the corresponding Specific VAS Terms.
2. Tonik may, at its sole discretion and from time to time, introduce, modify, suspend, or discontinue any VAS Product without further amendment of this Part III. Enrollment in a VAS Product is optional and requires your prior affirmative consent. The applicable Specific VAS Terms will be made available and disclosed to you before you enroll in or agree to avail of the VAS Product, whether during the loan application process or through other channels made available by Tonik. Your decision not to enroll in a VAS Product shall not affect the terms and conditions of your existing Loan.
3. Once you accept a VAS Product, its Specific VAS Terms shall form part of your Loan Agreement, but only in relation to that VAS Product. In case of any inconsistency between this Part III and the Specific VAS Terms, the Specific VAS Terms shall prevail with respect to that VAS Product.
4. The introduction of a new VAS Product under this Part III shall not, by itself, constitute an amendment to these Loan Terms and Conditions requiring prior notice, provided that it does not affect the terms and conditions of your existing Loan.

DEFINITIONS

5. In addition to the terms defined in Part I:
1. "Actively-At-Work" means you are able to perform your regular activities despite an injury or illness, or you are not confined to a hospital;
2. "Evidence of Insurability" means a written statement or proof of your eligibility for insurance, which the Insurance Partner will use to determine whether you qualify for coverage under a VAS Product;
3. "Insurance Partner" means the insurance provider duly registered with and regulated by the Insurance Commission of the Philippines, with which Tonik has partnered to offer insurance coverage under a VAS Product. Tonik has the sole discretion and prerogative to choose the Insurance Partner for each VAS Product. Different VAS Products may have different Insurance Partners;
4. "Outstanding Indebtedness" means the total amount of unpaid debt under a Loan Agreement for which you are covered by an insurance-bundled VAS Product;
5. "Payment Holiday" or "PayHinga" means the period during which interest and late payment fees on your Loan are suspended. During this period, auto-debit arrangements from either your Tonik Savings Account or linked debit card, if any, are suspended and disabled until the Payment Holiday ends. You shall also be excluded from collection calls during this time. Additionally, if your Payment Holiday is bundled with an insurance-linked VAS Product, Tonik will pay your insurance premiums for you during the Payment Holiday;

   The following terms and conditions apply to the Payment Holiday:

   1. no interest and late payment fees will be charged on your outstanding Loan balance during the Payment Holiday;
   2. your Equivalent Monthly Installment ("EMI") and the total number of installments will remain unchanged after the Payment Holiday. For the avoidance of doubt, EMI refers to the monthly payment amount that is due to repay your Loan, including principal, interest, and applicable fees;
   3. your final installment date ("Maturity Date") may change depending on the Payment Holiday you avail of;
   4. you may request a Payment Holiday, with or without a bundled VAS Product, as displayed and made available in the Tonik Application. Approval is at Tonik's sole discretion, subject to the applicable eligibility criteria and your compliance with these terms and conditions. Tonik may change the eligibility criteria from time to time. Tonik may also withdraw an approved Payment Holiday if a change in your circumstances, or inaccurate information you have provided, makes you ineligible; and
   5. you may cancel your Payment Holiday only if you submit your cancellation request at least five (5) banking days before your monthly installment due date. Requests submitted after this deadline will not take effect for the relevant month.
6. "Payment Holiday Month" or "PayHinga Month" means the specific month during which your Loan installment is postponed, as displayed in the Tonik Application, and confirmed by email;
7. "Protection Insurance" or "PI" means an insurance-linked VAS Product underwritten as an insurance policy by an Insurance Partner, as distinguished from a VAS Product provided under a non-insurance arrangement; and
8. "VAS Provider" means an insurance company, service provider, product manufacturer, retailer, warranty administrator, or other third party engaged by Tonik to provide, underwrite, administer, or fulfill a VAS Product, whether as an Insurance Partner or otherwise. Tonik has the sole discretion and prerogative to select which VAS Provider for each VAS Product. Different VAS Products may have different VAS Providers.

ELIGIBILITY, APPLICATION AND LIMITATIONS

6. The eligibility requirements for each VAS Product, including any applicable age, health, minimum Loan amount, occupational, or other criteria, shall be set out in its Specific VAS Terms.

7. Unless the Specific VAS Terms provide otherwise, you are not eligible to enroll in an insurance-linked VAS Product if you: (a) are in military, naval, or air force service; or (b) engage in hazardous activities, such as but not limited to deep-sea diving, mountain climbing, or underground mining.

8. You may enroll in a VAS Product at the time and in the manner made available by Tonik, including during Loan onboarding or at another point in your banking relationship with Tonik). Enrollment is subject to any applicable fee or premium disclosed in the Disclosure Statement or Specific VAS Terms. The fee or premium for a VAS Product shall be reflected in your Amortization Schedule or in an equivalent statement or record for your Tonik Savings Account, as applicable.

9. You may avail of a Payment Holiday, subject to the applicable fee and eligibility requirements as provided in the Disclosure Statement and/or Tonik Application, and in accordance with the criteria below:
   1. the Payment Holiday VAS must be added during Loan booking or such other time and manner made available by Tonik;
   2. your Loan must meet the minimum payment term, if any, set by Tonik. You must also satisfy the required number of consecutive installment payments to earn a Payment Holiday credit;
   3. you may accumulate Payment Holiday credits up to the maximum number set by Tonik. Once you reach this limit, you cannot earn additional Payment Holiday credits unless otherwise provided by Tonik;
   4. you may use your Payment Holiday credits within the period and in the manner prescribed by Tonik. You must submit your request before the applicable payment due date; and
   5. any unused Payment Holiday credits shall be forfeited once your Loan is fully repaid. Earned Payment Holiday credits may also be forfeited under the conditions set by Tonik, including when your Loan account becomes past due. You may earn Payment Holiday credits again upon satisfying the applicable reinstatement requirements.

INSURABILITY

10. Before enrolling in an insurance-linked VAS Product, you must confirm that you meet the health and insurability requirements set out in the applicable Specific VAS Terms. These may include confirmation that you are physically and mentally healthy, have no material pre-existing conditions, and have not recently undergone surgery, hospitalization, or medical treatment. You must also submit any additional Evidence of Insurability as may be required by Tonik and/or the Insurance Partner.

11. You must be Actively-At-Work, and not in military, naval, or air service, unless the Specific VAS Terms provide otherwise.

12. If you fail to pay the number of installments specified in the Specific VAS Terms, your coverage under the relevant insurance-linked VAS Product coverage shall automatically terminate. Coverage may only be reinstated if: (a) all outstanding dues, including principal, interest, fines, and penalties, have been fully paid; and (b) you submit Evidence of Insurability to the Insurance Partner. Reinstated coverage shall take effect only upon approval of such evidence by the Insurance Partner, provided that you remain Actively-At-Work. The Insurance Partner may decline coverage if you do not meet its insurability requirements.

BENEFICIARIES

13. Where a VAS Product includes a death or disability benefit, you may designate one (1) or more beneficiaries to receive any excess of the insurance amount over your Outstanding Indebtedness, in the manner set out in the Specific VAS Terms. Beneficiary designations are revocable unless you expressly designate a beneficiary as irrevocable in the form provided by the Insurance Partner. You may change a revocable beneficiary by submitting a written notice to the Insurance Partner. The change shall be effective on the date the notice is signed, subject to any action already taken by the Insurance Partner before receiving the notice.

Where a beneficiary is designated as irrevocable, you may revoke or change such designation only with the consent of the irrevocable beneficiary or beneficiaries, subject to Applicable Law.

Unless otherwise provided in the Specific VAS Terms, if no beneficiary was designated, or no designated beneficiary is alive at the time of your death, or the designated beneficiary is disqualified by law, any excess of the insurance amount over your Outstanding Indebtedness shall be payable to the first surviving class in the following order: (a) your widow or widower; (b) your surviving legitimate and illegitimate children; (c) your surviving parents; (d) your surviving brothers and sisters of the full blood; (e) your surviving brothers and sisters of the half-blood; or (f) your executors, administrators, or assigns. Beneficiaries within the same class shall share equally. Any share payable to a minor shall be paid in accordance with law.

INCONTESTABILITY

14. For an insurance-linked VAS Product involving life insurance payable upon your death, the coverage shall become incontestable after the policy has been in force during your lifetime for two (2) years from the date of its issue or last reinstatement, in accordance with R. A. 10607, otherwise known as the "Insurance Code." During the contestability period, Tonik or the Insurance Partner may contest the validity of the coverage on the grounds of material misrepresentation or non-disclosure, subject to Applicable Law and the relevant insurance policy. No statement relating to your insurability may be used to contest the validity of your insurance coverage unless it is contained in a written instrument signed by you.

15. Any increase in the death benefit shall become incontestable after it has been in force for one (1) full year from the effective date of such increase, except in cases of nonpayment of premiums.

EXCLUSIONS

16. Unless the Specific VAS Terms of a particular VAS Product provide otherwise, no benefit shall be payable if the insured event results from, including but not limited to: (a) self-inflicted injuries; (b) insurrection, civil commotion, or hostile action of armed forces, whether or not you participated; (c) an injury or illness sustained, or that is pre-existing or recurring, prior to the effective date of the benefit or its last reinstatement; or (d) an event occurring while you are committing or attempting to commit a crime, felony, or other illegal act, or resulting from drug or alcohol abuse.

17. "Pre-existing," for purposes of the exclusion above, means any illness or condition that, before the effective date of the benefit: (a) existed, or had an underlying cause that already; (b) was known to you or for which you received treatment or medical consultation; or (c) was indicated as likely present by any laboratory test or investigation.

18. The Specific VAS Terms may set out additional or different exclusions applicable to that VAS Product, including any applicable thresholds, durations, or specific conditions relevant to that coverage.

CLAIMS PROCESS AND PROCEDURES

19. A written notice of claim and any supporting documents and proof of claim must be submitted to the Insurance Partner within the period set out in the Specific VAS Terms. Failure to submit the notice and proof of claim within the prescribed period shall not invalidate or reduce a claim if it is shown that timely submission was not reasonably possible, and that the notice and proof were submitted as soon as reasonably possible.

20. You, your duly authorized representative, or your surviving heirs, as applicable, shall be responsible for filing the notice of claim with complete and accurate details, and cooperating with the Insurance Partner, including submitting to any examinations reasonably required to verify the claim.

21. Upon approval of a claim, the VAS Provider shall pay the benefit in the manner and to the payee(s) set out in the applicable Specific VAS Terms. This may include, but is not limited to, payment to Tonik in full or partial satisfaction of your Outstanding Indebtedness, payment to you or your beneficiary, repair or replacement of a covered item, or a combination of these benefits. Where a VAS Product's benefit is applied against your Outstanding Indebtedness, such Outstanding Indebtedness for that purpose shall include any accrued interest and charges due to default in the payment of installments.

FEES, PREMIUMS, AND RATES

22. The VAS Provider reserves the right to establish or revise fees or premium rates for a VAS Product, which shall apply only to new enrollments or renewals of existing enrollments. Any revised fees or premium rates shall not affect your existing enrollment during its current term. The VAS Provider shall notify Tonik of any new or revised fees or premium rates before their effective date. Tonik shall, in turn, disclose the applicable fees or premium rates to you before your enrollment or renewal, as applicable.

23. Where the VAS Product is a PI product, the Insurance Partner may require you to submit Evidence of Insurability. The results of the Insurance Partner's assessment may affect the scope of coverage or insured amount, as applicable, but shall not result in an increase in the premium payable by you. Any adjustments to the coverage or insured amount shall be disclosed to you before the insurance coverage takes effect.

TERMINATION

24. Coverage or service under a VAS Product shall terminate upon the earliest occurrence of any of the events set out in the applicable Specific VAS Terms, which may include, but are not limited to: (a) full repayment, renewal, or refinancing of your Loan before its scheduled Maturity Date; (b) default in installment payments beyond the period specified in the Specific VAS Terms; (c) transfer or assignment of your Loan to another creditor; (d) expiration of the period covered by the paid fees or premiums; (e) Tonik's notice to the VAS Provider that your enrollment has been terminated; or (f) reaching the maximum age or any other eligibility limit specified in the Specific VAS Terms.

    Termination shall not affect any valid claims arising before the effective date of termination.

COMMUNICATIONS AND DATA PRIVACY

25. You consent to and authorize Tonik and the VAS Provider of each VAS Product you enroll in, including their respective employees, duly authorized representatives, related companies, third-party service providers, and vendors, to process the information you provide in relation to the availed VAS Product, and share such information with any other person or organization exclusively for the following purposes: (a) servicing or administering the VAS Product; (b) processing transactions and enforcing the relevant VAS contract; and (c) pursuing the legitimate and lawful rights and interests of Tonik and/or the VAS Provider, as well as other purposes allowed by Applicable Law and regulations, including, but not limited to, those relating to data privacy and anti-money laundering.

26. You further agree that your Personal Information shall be retained for the duration of the relevant VAS Product's coverage or service period and for such additional period as may be required or permitted under Applicable Law and regulations.

27. You likewise confirm that you have read, fully understood, and agreed with the above declarations and authorizations for each VAS Product in which you enroll.

MISCELLANEOUS PROVISIONS

28. Where a VAS Product is a PI product that includes a death benefit, and you die by suicide within one (1) year from the effective date of that benefit or its last reinstatement, whichever is later, the pertinent provisions of the Insurance Code shall apply. If the death benefit is not payable on this ground, the Insurance Partner shall refund to your estate all premiums paid from the effective date of your insurance or its last reinstatement, whichever is later, until the date of your death.

29. With respect to these Loans Terms and Conditions, particularly any declaration you make in connection with a VAS Product, you agree to hold the relevant VAS Provider, its Affiliates, and their respective directors, officers, employees, legal representatives, agents and assignees, free and harmless from any loss or damage arising from third-party claims and/or actions relating to the processing of your application, your declarations, or actions taken in accordance with these Loans Terms and Conditions and the relevant VAS contract.

Last updated: 31 October 2026