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. “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.
2. “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.
3. “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.
4. “BSP” means Bangko Sentral ng Pilipinas, or the Central Bank of the Philippines.
5. “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.
6. “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).
7. “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.
8. “Direct Debit Form” means the authorization form executed by the Borrower allowing Tonik to automatically debit payments due from the Borrower’s designated Tonik Account or other nominated account for the purpose of settling loan amortizations, fees, or other obligations.
9. “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.
10. “Loan” means a loan applied for, and, if approved, disbursed by Tonik. The types of loans covered by these Loans Terms and Conditions include Buy Now Pay Later Loan (“BNPL Loan”), Loan Secured with Mortgage, Loan Linked to a Salary Card or other accounts, and Unsecured Cash Loan defined as follows:
1. “BNPL Loan” or “Shop Installment Loan (SIL)” means a buy now, pay later loan or loan disbursed at a merchant or physical/online retail partner of Tonik either to the customer or directly to the merchant or retailer.
2. “Loan Secured with Mortgage” means a loan secured by a mortgage.
3. “Loan Linked to a Salary Card or other accounts” means a loan linked to a salary deposit account or to accounts of other financial institutions.
4. “Unsecured Cash Loan” means a loan which is not secured by any mortgage, security, or other collateral, save to the extent set out in this Part I.
5. “Payroll Loan” means Tonik Loans secured via Tendo Platform and managed and repaid via Tendo.
11. “Loan Documents” collectively means these Loans Terms and Conditions, Disclosure Statement, Amortization Schedule, Promissory Note, Direct Debit Form, Loan Agreement and any other documents executed in relation to the Loan subject of these Loans Terms and Conditions.
12. “Loan Agreement” means the contract between the Borrower and Tonik that sets out the terms and conditions governing the Loan, including but not limited to the amount borrowed, repayment terms, interest rate, fees and charges, events of default, and the rights and obligations of both parties.
13. “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.
14. “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.
15. “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.
16. “Payment Protection Insurance” or “PPI” refers to one of the services that is bundled with the Payment Holiday feature for select Loans.
17. “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.
18. “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.
19. “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.
20. “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.
21. “Tendo” refers to Templetech Finance Corp. acting as Tonik’s agent for the “Payroll Loans.”
22. “Tendo Platform” refers to Tendo’s online loan onboarding, marketing and distribution of digital service mobile and web-based application.
23. “Tonik”, “the Bank”, “we”, “us”, “our” means Tonik Digital Bank, Inc.
24. “Tonik Application” or “Application” means the Tonik Mobile Banking Application, in particular, offering Loans to the Borrowers.
25. “Tonik Savings Account” means the Savings Account of the Borrower with Tonik.
26. “Value Added Services (VAS)” means the payment holiday and protection insurance bundle offered during the acquisition of select Loans.

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) be a Filipino citizen; (b) be currently residing in the Philippines; (c) have an active Tonik Savings Account and/or an account in the Tendo Platform; (d) possess the legal capacity to enter into binding contracts; and, (e) at the time of the Loan application, be within the age range prescribed by Tonik for the applicable Loan product. Part II of these Loans Terms and Conditions may specify additional requirements and/or a different age range. You must also meet those additional qualifications to be eligible for the particular Loan, as specified in Part II, on Tonik's website, and/or in the Tonik Application and/or Tendo Platform.

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

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. Any Documentary Stamp Tax (DST) or similar government-imposed tax or fee arising from the Loan, when applicable, shall be for your sole account and shall be deducted from the net proceeds of your Loan.

INTEREST

22. 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.

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

COOLING-OFF PERIOD

24. 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.

25. 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.

26. 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.

27. 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.

28. 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, as specified by Part II, E (3)]

29. 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.

30. 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.

31. 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.

32. 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 in other official communications issued by Tonik. Payments made through unauthorized, unofficial, or unverified third-party channels that are not endorsed by Tonik, including but not limited to, individuals or agents claiming to represent Tonik, or its promoters or personnel, shall not be recognized, and any resulting loss, delay, or damage arising from such transactions shall be solely at your risk and expense.

33. 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.

34. 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.

35. 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, PPI fees, Payment Holiday fees, bundled service packages that include both PPI and Payment Holiday fees, 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.

36. 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.

37. 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

38. 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.

39. 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

40. 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

41. If an Event of Default occurs, Tonik shall have the right, acting in good faith and in accordance with applicable laws, 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

42. 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 fee;
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.

43. 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 laws and regulations.

44. 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.

45. 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.

46. You further consent that Tonik may conduct collection activities, including, but not limited to, locating you or conducting field visits at 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.

47. 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.

48. 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.

49. 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.

50. 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.

CROSS DEFAULT

51. 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

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

53. 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 laws and regulations.

54. 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

55. 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

56. 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.

57. 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.

58. 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 Bureau of Internal Revenue 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.

59. 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 laws and regulations.

60. 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 Laws and regulations.

61. 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.

62. 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 laws and regulations.

63. 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

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

65. 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.

66. 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.

67. 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.

68. 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.

69. 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.

70. 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

71. 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

72. 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

73. 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.

74. 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.

75. 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.

76. 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.

77. 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.

78. 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.

79. 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)

80. 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 laws.

81. 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.

82. 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

83. 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

84. 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

85. Tonik may from time to time, update, add to, modify, or change these Loans Terms and Conditions (“Changes”). You shall be notified of such Changes at least sixty (60) calendar days before their effectivity. Tonik will send the notice through your preferred mode of communication provided during onboarding or your most recent preference update. 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.

86. 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 notice. 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

87. 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:    customercare@tonikbank.com;   helpdesk@tendo.ph

88. 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 laws.

89. Tonik is regulated by the Bangko Sentral ng Pilipinas 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.

3. At Tonik’s sole discretion, the interest rate for the Loan may be reduced to the discounted interest rate if you are able to submit the required documents within seven (7) business days as may be specified in the Loan Documents, and Tonik determines, in its final evaluation, that the said documents are acceptable.

4. If you fail to submit any of the requirements stated in the immediately preceding subsection, or if the documents submitted are not acceptable to Tonik, the BNPL Loan or SIL will be subject to the regular interest rate.

OBLIGATIONS AND COVENANTS

5. 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

6. You authorize Tonik to automatically debit (auto-debit) the monthly premium of the PPI from your Deposit Account and to automatically renew the coverage every year, unless you submit a written request for termination at least thirty (30) calendar days before the renewal date. The monthly premium shall be included in your Monthly Installment amount, which is subject to the auto-debit arrangement under your BNPL Loan or SIL.

7. 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:

1. “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.

2. “Loan Documents,” as defined in Part I, shall be deemed to include the Deed of Mortgage.

3. “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.

4. “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.

5. “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

6. Notwithstanding the provisions in the Eligibility and Application section in Part I, to apply and qualify for a Loan with Mortgage, you must: (a) possess the legal capacity to enter into binding contracts; (b) at the time of application, aged between 23 to 55 years old; (c) own a real estate 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; (d) 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, (e) 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 (d) above. Your Spouse will also be required to give consent to the mortgage and related Loan Documents as required by law.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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

14. 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;
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

15. 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.

16. 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.

17. 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.

18. 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.

19. 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

20. 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

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

C. 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:

1. “Salary Bank Account” means the employment payroll account held by you at any BSP-registered bank in the Philippines.

2. “Salary ATM Bank” means the BSP-registered bank where you have your Salary Bank Account and Salary ATM Card.

3. “Salary ATM Card” means the ATM debit card issued in the Philippines that is linked to your Salary Bank Account.

ELIGIBILITY AND APPLICATION

4. Despite the requirements in the Eligibility and Application section in Part I, to apply and qualify for this relevant Loan, you must: (a) have the legal capacity to enter into binding contracts; (b) be aged between 23 to 55 years old at the time of your application; and, (c) have an existing, valid, and local 3D-Secure (3DS) Salary ATM Card from a local bank as a payment method, or an active account with other banks or e-wallets.

PAYMENT AND REPAYMENT

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

D. ADDITIONAL PROVISION APPLICABLE TO AN UNSECURED CASH LOAN

1. 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. 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.

E. ADDITIONAL PROVISIONS APPLICABLE TO PAYROLL LOANS

1. Notwithstanding the requirements set out in the Eligibility and Application section in Part I, 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”); and, (b) submit an application via the Tendo Platform. To note, opening a Tonik Savings Account is not required for a Payroll Loan.
2. Payroll Loan disbursements shall be credited to the bank or digital wallet accounts you nominate in the Tendo Platform.
3. Despite the provisions in the Payment and Repayment section in Part I, your Payroll Loan shall be repaid by salary deductions by the Partner Company, being your employer. By applying for a Payroll Loan, you irrevocably authorize the Partner Company to deduct the loan repayments directly from your salary. 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 payroll loan deductions from other banks or financial institutions, if any.
4. (A) Non-payment of any Payroll Loan installment; (b) submission of false or misleading information; or, (c) termination of your employment or any other separation from the Partner Company shall be deemed a breach of the Loan Documents, and you shall be considered in default. Upon default, (a) the entire Loan obligation shall immediately become accelerated, or due and payable immediately; (b) you shall be liable for any late payment penalties; and, (c) Tonik may initiate recovery actions, including legal proceedings or reporting to credit bureaus.
5. If your employment with the Partner Company is terminated or you otherwise separate from the latter, all Payroll Loans shall be accelerated, and the remaining payments due shall be deducted from your final salary payment. You irrevocably authorize the Partner Company to deduct the total outstanding Loan amount from your final salary payment. If the final salary payment is insufficient to cover the total remaining payable amount, you will remain liable to repay the Loan based on a mutually agreed payment structure.
6. 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.
7. 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.
8. You also acknowledge that if a Payroll Loan is issued via a Partner-Merchants in the form of the purchased goods, at no instance shall both Tendo and Tonik be responsible for the quality, delivery, or fulfillment of the goods purchased. Partner-Merchants shall assume full and sole responsibility for any issues related to such goods.
9. All customer service and complaint management related to the Payroll Loan shall be coursed only through the Tendo helpdesk via helpdesk@tendo.ph.

PART III. SPECIAL PROVISIONS FOR VALUE-ADDED SERVICES

This Part III contains terms and conditions that are only applicable for Loans that include a payment holiday and/or protection insurance bundled value-added services (VAS). These provisions are additional to those in Parts I and II, whenever relevant.

These clauses shall initially apply to BNPL Loans or SILs but may be extended to other loan products offered by Tonik with prior written notice.

DEFINITIONS

1. In addition to the terms defined in Part I:

1. “Actively-At-Work” means you are not unable to perform your regular activities because of 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 PPI-Partner will use to decide if you qualify for coverage.
3. “Outstanding Indebtedness” means the total amount of unpaid debt under a Loan agreement for which you are covered by this insurance.
4. “Payment Holiday” or “PayHinga” is the period when the interest and late payment fees on your Loan are put on hold. During this period, auto-debit functions 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 the collections calling list during this time. Additionally, Tonik will pay your insurance premiums for you during the Payment Holiday.
5. “Payment Holiday Month” or “PayHinga Month” means the specific month in which your Loan installment is postponed, as displayed in the Tonik App, and confirmed in the email.
   For clarity, the following are the salient terms and conditions relating to the Payment Holiday with PPI bundle:
   1. no interest and late payment fees will be charged on your outstanding balance during the Payment Holiday.
   2. the Equivalent Monthly Installment (EMI) will remain the same amount after the Payment Holiday. The total number of installments will likewise remain unchanged. For the avoidance of doubt, EMI refers to the monthly payment amount that is due to repay the Loan, which includes the principal, interest, and applicable fees.
   3. your final installment date (“Maturity Date”) may change, depending on whether you avail a one (1) month or two (2) month-Payment Holiday.
   4. you can request the Payment Holiday feature by adding the “Payment Holiday with Free Life Insurance” on your monthly payment in the Tonik App. The decision to approve the Payment Holiday shall be at Tonik’s sole discretion, based on the eligibility criteria, which may change over time, and your compliance with these terms. Tonik may withdraw your Payment Holiday if your circumstances change, or the information you provide to Tonik becomes inaccurate, in a way that makes you no longer eligible.
   5. The additional provisions applicable to BNPL Loan or SIL do not constitute a waiver of Tonik’s rights and remedies pursuant to these Loans Terms and Conditions or otherwise provided by Applicable Law. Tonik shall remain entitled to enforce the original Loans Terms and Conditions.
   6. you can only cancel your Payment Holiday five (5) banking days before your monthly installment due date. If you cancel after that time, Tonik will not be able to cancel the Payment Holiday for the relevant month.
6. “Payment Protection Insurance” or “PPI” is part of the VAS and a type of coverage that is bundled with the Payment Holiday feature for select Loans.
7. “PPI-partner” means the insurance provider duly registered and regulated by the Insurance Commission of the Philippines, with whom Tonik has partnered to offer insurance coverage for you. Tonik has the sole discretion and prerogative to choose which PPI-Partner to engage with for purposes of the PPI bundle.
8. “Total and Permanent Disability (TPD)” means an incapacity resulting from bodily injury or illness, sustained while insured under this benefit, which prevents you from performing the material and substantial duties of any occupation for wage or profit. It also refers to Total Disability that has lasted continuously and uninterruptedly for at least six (6) whole months and is expected to continue for the remainder of your lifetime. For purposes of these Loans Terms and Conditions, if you sustain the entire and irrecoverable loss of sight in both eyes, or the loss by severance of both hands at or above the wrists, or both feet at or above the ankle joints, or one (1) hand at or above the wrist and one (1) foot at or above the ankle joint, such that you are unable to perform any such occupation described above, you shall be deemed by the PPI-Partner to have suffered from TPD.

ELIGIBILITY, APPLICATION AND LIMITATIONS

2. The PPI is available to eligible Borrowers who: (a) are in good health; (b) are at least 23 years old but not more than 58 years of age; (c) met the minimum loan amount; and, (d) have complied with the requirements in the succeeding provisions. However, you are not eligible to participate if you: (a) are in military, naval, or air service; or (b) engage in hazardous activities, such as but not limited to, deep-sea diving, mountain climbing, or underground mining.

3. You are eligible to avail of the Payment Holiday with PPI bundle only during Loan onboarding, subject to a fee as provided in the Disclosure Statement and in accordance with the criteria below:
1. the Payment Holiday VAS is added during the Loan booking;
2. your Loan payment term should be at least six (6) months;
3. the fee or premium for PPI is included in your Monthly Installment amount, as set by Tonik and its PPI-Partner, and will be displayed in your Amortization Schedule;
4. you must have made at least three (3) consecutive installment payments to be entitled to one (1) Payment Holiday credit. If you make six (6) consecutive installment payments, you will be entitled to two (2) Payment Holiday credits;
5. you may only accumulate a maximum of two (2) Payment Holiday credits for each Tonik account. If you have already earned two (2) Payment Holiday credits, you cannot earn any Payment Holidays anymore;
6. you can use your Payment Holiday credits consecutively, but you must request before your payment due date; and,
7. any unused Payment Holiday credits will be forfeited once your Loan is fully repaid. Additionally, all earned Payment Holiday credits may be forfeited if the Loan account becomes past due and has accrued a late payment fee at any point in time. However, you can earn Payment Holiday credits again once your Loan account is up to date, and the late payment fee is paid.

INSURABILITY

4. To be covered by the PPI, you confirm that, prior to Loan onboarding:
1. you are physically and mentally healthy;
2. you have never had any congenital birth defects, heart disease, high blood pressure, lung or kidney ailment, tumors, cancer, or any other physical impairments; and,
3. you have not undergone any surgery, operation or medical procedure, nor have you been hospitalized, or treated for any illness in the past twelve (12) months

5. Additionally, you must be Actively-At-Work, and not in military, naval or air service, and must meet and satisfy any additional Evidence of Insurability as maybe set by Tonik and/or its PPI-Partner.

6. If you default on payments for more than three (3) installments, the PPI shall automatically be terminated and may only be reinstated if:
1. all outstanding dues, including principal, interest, fines and penalties, have been fully paid; and,
2. you submit Evidence of Insurability to the PPI-Partner.

The PPI shall take effect on the date such evidence is approved by the PPI-Partner and provided you are still Actively-At-Work. The PPI-Partner reserves the right to decline coverage if you are deemed uninsurable.

BENEFICIARIES

7. In terms of the TPD benefit, you may designate a beneficiary or beneficiaries to receive any excess of your insurance amount over your Outstanding Indebtedness. All designations of beneficiaries are revocable unless otherwise stated by you on the form provided by the PPI-Partner. You may change a beneficiary by filing a written notice with the PPI-Partner on the form. The change shall then be effective as of the date it was signed, but it shall be subject to any actions taken before the PPI-Partner receives the notice at its office. If the PPI-Partner has already taken any action or made a payment before receiving the notice, the change in beneficiary will not affect any actions or payments already made by the PPI-Partner.

In the designation of an irrevocable beneficiary, your exercise of your privilege to revoke or change a beneficiary shall be subject to the consent of any beneficiaries designated as irrevocable beneficiaries while they exist.

INCONTESTABILITY

8. In terms of the TPD benefit, the policy shall be considered contestable (i.e., Tonik or its PPI-Partner may review or deny a claim if there was any misrepresentation or non-disclosure of material information made during your application) if the disability occurs within one (1) year from the effective date of the benefit’s attachment to your life insurance coverage, or from the date of its last reinstatement, whichever occurs later.

9. In terms of the death benefit, no statement relating to your insurability can be used to contest the validity of your insurance after it has been in force for one (1) full year from the later of the effective date or the date of its last reinstatement during your lifetime, and only if the statement is contained in a written instrument signed by you. Similarly, any increase in the death benefit shall be 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

10. Payment of the disability benefit under the PPI will not be made if your TPD results from any of the following:
1. self-inflicted injuries;
2. insurrection, civil commotion, or hostile action of armed forces, whether or not you were actually participating in such events;
3. a disability lasting less than six (6) full months or not expected to continue for the rest of your lifetime, except in cases of:
1. entire and irrecoverable loss of sight of both eyes; or
2. severance of both hands at or above the wrists; or, both feet at or above the ankle joints; or, one (1) hand at or above the wrist and one (1) foot at or above the ankle joint; resulting in your inability to perform the material and substantial duties of any occupation for wage or profit; and/or,
4. any injury or illness that was sustained before you applied for this benefit, or is pre-existing or recurring, which you contracted prior to the date this benefit was attached to your life insurance coverage, or became in force, or if later, the date of its last reinstatement. Pre-existing illness means any illness:
1. which existed or was existing; or,
2. the cause of which existed or was existing; or,
3. for which you had knowledge, received treatment, or medical consultation; or,
4. for which any laboratory test or investigation showed the likely presence of the illness; prior to the date this benefit was attached; or,
5. to your life insurance coverage, became in force, or if later, the date of its last reinstatement; or,
6. results from drug or alcohol abuse; or,
7. results from mental or nervous conditions; or,
8. occurs while you are committing or attempting to commit any crime, felony, or other illegal act.

CLAIM PROCESS AND PROCEDURES

12. In case of death, a written notice of claim must be submitted to the PPI-Partner’s office within thirty (30) days from date of death. Supporting documents and proof of claim must be submitted no later than ninety (90) days from date of death. Failure to submit the written notice and proof of claim within the prescribed periods shall not invalidate or reduce any claim, provided it is shown that submission within the time limits was not reasonably possible and that the claim was submitted as soon as was reasonably possible.

13. In the event of TPD, you or your duly authorized representative is solely responsible for filing a notice of claim with the PPI-Partner, in writing and with full details. You must provide the PPI-Partner with satisfactory proof of the claim within ninety (90) days from the date the notice is given. However, failure to submit the written notice and proof of claim within such time shall not invalidate or reduce any claim, if it is shown that submission within the required time was not reasonably possible and that proof was submitted as soon as was reasonably possible. Further, you are obliged to cooperate with the PPI-Partner if the latter shall require medical examinations by one (1) or more examiners of its choice as part of verifying your TPD.
    However, the proceeds of the PPI will not be paid if your TPD was due to the following:
    1. self-inflicted injuries;
    2. insurrection, civil commotion, or hostile action of armed forces, whether or not you were actually participating in such events;
    3. a disability lasting less than six (6) full months or that is not expected to continue for the rest of your lifetime, except in cases of:
    1. entire and irrecoverable loss of sight of both eyes; or,
    2. severance of both hands at or above the wrists; or, both feet at or above the ankle joints; or, one (1) hand at or above the wrist and one (1) foot at or above the ankle joint; resulting in your inability to perform the material and substantial duties of any occupation for wage or profit; and/or,
    4. injury or illness that was sustained before you applied for the relevant benefit, or pre-existing or recurring, which you contracted prior to the date this benefit was attached to your life insurance coverage, became in force, or if later, the date of its last reinstatement. Pre-existing illness means any illness:
    1. which existed or was existing; or,
    2. the cause of which existed or was existing; or,
    3. for which you had knowledge, received treatment or medical consultation; or,
    4. for which any laboratory test or investigation showed the likely presence of the illness; prior to the date this benefit was attached to your life insurance coverage, became in force, or if later, the date of its last reinstatement; or,
    5. results from drug or alcohol abuse; or,
    6. results from mental and nervous conditions; or,
    7. occurs while you are committing or attempting to commit any crime, felony, or other illegal act.

14. In case of death, any of your surviving heirs or duly appointed administrator must file a notice of claim with the PPI-provider within thirty (30) days from date of death. Proof of claim must be submitted no later than ninety (90) days from the date of death. Failure to submit the written notice and proof of claim within the time limits shall not invalidate or reduce any claim if it shall be shown that such submission was not reasonably possible within the required time and was completed as soon as was reasonably possible. Upon receipt and approval by the PPI-Partner of the necessary proof/s that you died while covered under the policy, the PPI-Partner shall pay:
1. Tonik – your Outstanding Indebtedness at time of death;
2. your beneficiary/ies; and,
3. the excess, if any, of your amount of insurance over your Outstanding Indebtedness.

The Outstanding Indebtedness in any contract of Loan shall also include any accrued interest charges due to your default in payment of the installments.

If no beneficiary is alive at the time of your death, or if you fail to designate a beneficiary, or if the designated beneficiary is disqualified as ordered by law, the excess of the amount of insurance over the Outstanding Indebtedness in any contract of Loan, as stated above, shall be payable to the first (1st) surviving class of the following order of classes of beneficiaries deemed named by you:

1. your widow or widower;
2. your surviving legitimate and illegitimate children;
3. your surviving parents;
4. your surviving brothers and sisters of the full blood;
5. your surviving brother and sister of the half-blood; or,
6. your executors, administrators or assigns.

If two (2) or more beneficiaries belong to the same class, they shall share equally in the excess of your amount of insurance over the Outstanding Indebtedness in any contract of Loan. Any minor’s share shall be paid in the manner prescribed by law. Any such payment shall discharge the PPI-Partner to the extent of the amount paid.

15. If the PPI-Partner receives a notice and proof of claim from Tonik that you, while the benefit is in effect, suffer from TPD: (a) for a continuous period of at least six (6) whole months; and, (b) before your 65th birthday, then upon approval of the claim and subject to the condition and provisions of the TPD benefit and the policy to which the benefit is attached, the PPI-Partner shall, in lieu of all obligations hereunder and in full discharge of all claims by you, pay:

1. Tonik – in one (1) lump sum, your Outstanding Indebtedness at the commencement of the disability as reported by you to the PPI-Partner; and,

2. You – any excess of your amount of insurance over your Outstanding Indebtedness.

If the PPI-Partner reasonably believes you to be incompetent, and receives a certificate signed by a medical practitioner confirming this, the PPI-Partner may pay any excess amount to your duly appointed guardian, spouse, or another family member, at PPI-Partner’s sole discretion. The receipt of such person shall discharge the PPI-Partner from further liability from the benefit claimed. However, if you pass away before any excess of your amount of insurance over your Outstanding Indebtedness is paid, the PPI-Partner shall pay the amount to the designated beneficiary.

PREMIUM RATES

16. The PPI-Partner reserves the right to establish new premium rates, which will take effect on any anniversary of the PPI-Partner’s effective date or whenever the terms and conditions of the insurance policy are changed. The PPI-Partner may charge a higher premium rate if you are required to submit Evidence of Insurability and are found to be a substandard risk. Notice of any new premium rates shall be given to Tonik before the date specified by the PPI-Partner for the new rates to become effective. Tonik will then provide you with a corresponding notice before the new rates are implemented.

TERMINATION

17. When Your TPD Benefit Ends – The TPD benefit under the PPI policy shall automatically terminate, and you will no longer need to pay the premium for it, on the earliest of: (a) the applicable date when your Borrower’s Insurance terminates, as stated in the policy; (b) the grace period for paying your TPD ends, and the premium remains unpaid to the PPI-Partner; or, (c) the day you reach the age of 65. However, termination of the TDP benefit shall not affect any valid claims arising prior to such termination.

18. When your PPI Policy Ends – On the other hand, the PPI policy itself, covering all benefits including the TPD benefit, terminates on the earliest of: (a) the date your Loan is fully paid, renewed, or refinanced before the scheduled Maturity Date; (b) the date your installment payments become in default for more than three (3) months; (c) the date your Loan is transferred or assigned to a creditor; (d) the period covered by the paid premiums ends; (e) the date Tonik advises the PPI-Partner that your insurance coverage has been terminated; or, (f) the date you reach the age of 65.

COMMUNICATIONS AND DATA PRIVACY

19. You consent to and authorize Tonik and its PPI-Partner, including their respective employees, duly authorized representatives, related companies, third-party service providers, and vendors, to process your information provided during the Loan application in relation to the availed VAS, and share the same with any person or organization exclusively for the following purposes: (i) to service the policy; (ii) to process transactions and enforce the PPI contract; and, (iii) to pursue its legitimate and lawful rights and interests, as well as any other purposes allowed by Applicable Law and regulations, including, but not limited to, those relating to data privacy and anti-money laundering.

20. You further agree that your Personal Information shall be retained for the duration of the insurance policy and/or until the expiration of the retention period set by Applicable Law and regulations.

21. You likewise confirm that you have read, fully understood, and agreed with the above declarations and authorizations.

MISCELLANEOUS PROVISIONS

22. If you die by suicide less than one (1) year after the effective date or date of reinstatement of your insurance, the pertinent provisions of the Insurance Code shall apply. If the death benefit is not payable, the PPI-Partner shall refund all premiums paid from the later of the effective date or the date of reinstatement of your insurance to the date of your death, to your estate.

23. With respect to these Loans Terms and Conditions, particularly your health declaration, you agree to hold the PPI-Partner, its Affiliates, and their respective directors, officers, employees, legal representatives, agents and assignees, free and harmless from any loss or damage arising from any claims and/or actions made by any third party, including the parties to the PPI policy or their representatives. This includes claims related to the processing of your application form, or any action taken or not taken by the PPI-Partner or its Affiliates based on the remedies and authorities outlined herein.

Last updated:November 1, 2025