Republic of the Philippines

RTC of Manila

Branch 1

Sterling Bank of Asia Inc. Civil Case: for Sum of money with damages and Attorney’s fees and prayer for Writ of Preliminary Attachment

vs

Arsenio Locsin and Maria Lucia Locsin aka Lucille Jacinto Carlos

Judciail Affidavit of

Laarni O. Obtinario

This judicial Affidavit of Laarni O. Obtinatio is executed to serve as her direct testimony in the instant case. This judicial affidavit is offered to prove; 1. All the allegations in the complaint; 2. including all the annexes appended thereto, which she respectfully requests to be correspondingly marked as exhibits in this case 3. all matters related thereto, with reservation to present additional exhibits in the course of the proceedings of the instant case.

1. Please state you name, age, your occupation and your office address Ans: My name is Laarni Obtinario, of legal age, I am an Account Officer of Sterling Bank of Asia, with office address at the Ground floor, Sterling Bank of Asia Corporate Center, Ortigas Avenue Greenhills San Juan City.

2. How are you related to the petitioner in this case? Ans: I am the Attorney in Fact of the Chief Executive Officer of Sterling Bank Asia.

3. I’m Showing you this document (Special Power of Attorney) which we request to be marked as our Annex I, what is the relation of this document in your capacity as an Attorney in Fact of the Bank’s Chief Executive Officer?Ans. That was the document executed by our Chief Executive Officer that granted me the right to institute this case.

4. Is the Bank’s Chief Executive Officer authorized by its Board of Directors to initiate this case? Ans. Yes, there was a Board Resolution approved for that purpose

5. I’m showing you this document (Secretary’s Certificate) which we request to be marked as Annex H, is this the document that granted your Chief Executive Officer the right to institute this case? Ans: Yes, that was document prepared for that purpose.

6. How are you related to the defendants in this case?

Ans: as an Account Officer of the Bank, I handled the account of the defendants Arsenio Locsin and Ma. Lucia Locsin (collectively spouses Locsin)

7. How did they start to do business with the bank? Sometime in June 2008, Spouses Locsin, through Arsenio Locsin applied for and were granted by the Bank, a Promissory Note Lineworth P650,000 to finance their personal and working capital requirements. The line was secured by the pledge of one share of stock of The Country Club Inc.

8. I’m showing you this document (Deed of Assignment) we requested to be marked as Annex A, is this the document that the defendants executed in order for them to pledge the shares of stock you mentioned?Ans: Yes, that was the document duly signed by Arsenio Locsin

9. Did they avail the credit line prior to its expiration? Ans: Yes, for values received, Spouses Locsin, through Arsenio Locsin, executed and delivered a Promissory note to the Bank on 5 July 2010, promising to pay the latter the principal sum of P624,320 on October 1 2010.

10. I’m showing you this document (Promissory Note) which we request to be marked as Annex B, is this the document executed by the defendants through Arsenio Locsin? Ans: Yes, that was the document executed by him when he received the money.

11. Were they able to pay their obligation on time? Ans: No, beginning Sept 1 2010 spouses Locsin stopped paying their obligations under the Promissory note. Thus the bank made several demands letters for its payment.

12. Did they receive such demand letters?Ans: Yes, Mr Locsin himself personally received a letter dated November 4 2010 after our scheduled meeting.

13. I’m showing you this document (Demand Letter Dated November 4, 2010), which we request to be marked as Annex C, is this the demand letter that Mr Locsin personally received? Ans: Yes, he signed it in front of me.

14. How about the other demand letters? Ans. The final demand letter we sent through our messenger was returned due to the fact that Spouses Locsin already moved out from their previous address and did not leave any forwarding address.

15. Were they able to heed to such demands? Ans. To date, Spouses Locsin have not gotten in touch with the Bank, either to make arrangements for payment or even just to inform the latter to their new home address. Moreover, while we have been continuously trying to get in touch with them to enforce collection, they have persistently refused to take our calls.

Laarni C. Obtinario

Affiant