Co v PNB

LETICIA CO, assisted by her husband MUI YUK KONG, in substitution of CITADEL CITADEL INSUANCE INSUANCE ! SUETY SUETY CO", CO", INC", #$ainti%&a# #$ainti%&a##e$$ #e$$ee, ee, vs. '(ILI''INE NATIONAL )ANK, defendant&a##e$$ant" No" L&*+-" .une /0, +01/ FACTS: CTS: Ap Appe peal al from from the the deci decisi sion on of the the CFI. CFI. In 19 1962 62,, Stan Standa dard rd Parts arts Manfa Manfact ctrin rin! ! Corpor Corporati ation on "Stand "Standar ard# d# e$ec e$ected ted a real real estate estate mort!a mort!a!e !e co%erin! properties sitated in &a!io Cit', in fa%or of P(&, as secrit' for a P)**, ***.** loan. In 196+, Standard amended the real estate mort!a!e to inclde a propert' in Maati as secrit' to the increased loan amont of P1, ***,***.**. In the same 'ear, it also e$ected a chattel mort!a!e for its personal properties. The total loan of Standard amonted to P-, 296,*+.)6. Stan Standa darrd defa defal lte ted d on its its loan loan o/li o/li!a !ati tion ons s ths ths P(& P(& for foreclo eclose sed d the the mort!a!es. P(& prchased the foreclosed properties "0l' 19, 19- for the &a! &a!io io prop proper erti ties es A A! !st st , 19 19- for for the the Maa Maati ti prop proper ert' t'#. #. It also also consolidated titles to the properties located in &a!io 3hen Standard failed to redeem the properties 3ithin the redemption period. The title 3as issed on Ma' Ma' ), 19 196 6.. 4n Ma' Ma' 11-,, 19 196 6,, titl title e to the the Maa Maati ti prop proper ert' t' 3as 3as also also transferred to P(&. In the meantime, on March ), 196, Citadel 3rote P(& a letter e$pressin! its desire to redeem the Maati propert', it alle!in! to /e assi!nee of the ri!ht of redemption of Standard "assi!nment 3as made on Fe/rar' 2*, 196# 3ith respect to the said propert'. P(& refsed considerin! that its total claim of P+, +66,)-6.-2 is mch hi!her than Citadel5s oer of  onl' P1, 621,9* as redemption price. 4n March 11, 1*6, Citadel consi!ned the pa'ment to the trial cort in an instant action. The trial cort rled in fa%or of Citadel ths this appeal. ISS7 ISS78: 8: het hethe herr Cita Citade dell e$er e$erci cise sed d its its ri!h ri!htt to redem edempt ptio ion n 3ith 3ithin in the the redemption period. 7;I( i>ca cate te of sale sale "Mar "March ch 11 11,, 19 19) )## de de to the the am/i am/i! !it it' ' in the the alle!ations of the parties. The provision of the PNB Charter are deemed included in mortgage loan contracts of PNB by virtue of express contractual incorporation :