The Securitization Act of 2004

Section 21

The Service shall perform its duties pursuant to the terms and conditions of the servicing agreement and such other written instructions as the SPE, the trustees or its interim representative may issue or in case-to-case basis. Collections made by the Servicer shall be remitted promptly to the SPE or as may be agreed upon the parties in the servicing agreement, but in no case shall be remittance period be longer than one (1) month.

Section 22

The Servicer shall prepare periodic reports as may be required by the SPE, the trustee or its interim representative within thirty (30) days, including reports of any borrower or obligator which fails to pay its debt or obligation at maturity date or any adverse development that may be affect the collectibility of any loan account or receivable comprising the asset pool.

Section 23

The Servicer shall have such authority as is expressly stated in the servicing agreement and unless otherwise specifically provided therein, such authority shall encompass the general powers of administration. The Servicer shall have no authority to waive penalties and charges except with the written authority from the Board of SPE, the trustee or the interim representative, should one be appointed

Section 24

The Servicer shall be a corporation duly incorporated under Philippine law, with a minimum authorized capitalization of Ten million pesos (P10,000,00.00) or such higher amounts as the Commission may prescribe. It shall be independent of the SPC or the trustee and shall not share common ownership, officers, or directors with the SPC or the trustees. The Originator or Seller may act as the Servicer as may be approved by the Commission or the BSP, as the case may be.

Section 25

The Servicer shall act with utmost good faith and shall perform its obligations under the servicing agreement with the due diligence of a good father of a family.

Section 26

Breach by the Servicer of its obligations arising from the failure to abide by the standard of conduct set forth in the preceding section shall subject the Servicer to the penalty of revocation of its corporate registration and a fine of not less than One Million pesos (P1,000,000.00) and shall subject its officers and employees responsible for such noncompliance with the standard of conduct referred to above, to a penalty of imprisonment for not more than five (5) years and a fine of not less than One Hundred Thousand pesos (100,000.00). Breach arising from bad faith or gross negligence shall subject the Servicer to revocation of its corporate registration and a fine of not less than Five million pesos (P5,000,000.00) and shall subject the officers and employees responsible for such breach to a penalty of imprisonment for not more than six (6) years and one (1) day up to a maximum of twenty (20) years and a fine of not less than Five hundred thousand pesos (P500,000.00).