CREDIT TRANSACTIONS ATTY. BENZON JUDD C. CONG, J.D., L.L.M. 1st Semester, School Year 2014-2015 COURSE OUTLINE AND MATERIALS:
References: De Leon, Hector S. Comments and Cases on Credit Transactions, Transactions , Eighth Edition, Rex Printing Company, Inc. 2010 Tolentino, Arturo M. Commentaries & Jurisprudence on the Civil Code of the Philippines , Vol. 5, Central Pub., 1987 I.
CREDIT TRANSACTIONS A. The Concept of Credit 1. Credit, Debt and Security 2. Credit and Credit Transactions 3. Commercial Credit Transactions
Code of Commerce, Arts. 1 to 3; New Civil Code, Arts. 1933 and 1934; Republic Act No. 3765, Sec. 3. (2); Acme Shoe, Rubber & Plastic Corporation v. Hon. Court of Appeals, G.R. No. 103576 / 260 SCRA 714, 22 August 1996; Central Bank of the Philippines v. Hon. Court of Appeals, G.R. No. L-45710 / 139 SCRA 46, 3 October 1985; Francisco Herrera v. Pethrophil Corporation, G.R. No. L-48349 / 146 SCRA 385, 29 December 1986; Olivia and Ernesto Navoa v. Court of Appeals, G.R. No. 59255 / 251 SCRA 545, 29 December 1995; People of the Philippines Islands v. Venancio Concepcion, G.R. No. L-19190 / 44 Phil 126, 29 November 1922; Raoul S.V. Bonnevie v. Hon. Court of Appeals, G.R. No. L-49101 / 125 SCRA 122, 24 October 1983; Saura Import and Export Co., Inc. v. Development Bank of the Philippines, G.R. No. L24968 / 44 SCRA 445, 27 April 1972; B. Loans, Mutuum and Commodatum 1. The Concept of Loan a. General Concepts Obligation to Deliver Object of a Loan Consideration of a Loan Obligation to Return or Pay b. Contract to Loan
New Civil Code, Arts. 418, 1232-33, 1305, and 1933-61;
BPI Investment Corporation v. Hon. Court of Appeals, G.R. No. 133632 / 377 SCRA 117, 15 February 2002; Carolyn M. Garcia v. Rica Marie S. Thio, G.R. No. 154878 / 518 SCRA 433, 16 March 2007; Celestina T. Naguiat v. Court of Appeals, G.R. No. 118375 / 412 SCRA 591, 3 October 2003; Felix De los Santos v. v. Agustina Jarra, G.R. No. L-4150 L -4150 / 15 Phil 147, 10 February 1910; People of the Philippines Islands v. Venancio Concepcion, supra.; supra.; Polo S. Pantaleon v. American Express International, Inc., G.R. No. 174269 / 629 SCRA 276, 25 August 2010; Saura Import and Export Co. Inc. v. Development Bank of the Philippines, supra.; supra.;
2. Commodatum a. General Concepts Consideration in Commodatum Object of Commodatum b. Parties to a Commodatum Ownership by Bailor Use by Bailee
Solidary Liability of Bailees c. Liability for Expenses and Damages Ordinary Expenses Extraordinary Expenses Other Expenses Abandonment by Bailor Right of Retention by Bailee d. Liability for Loss e. Obligation to Return
New Civil Code, Arts. 1933, and 1935-1952;
Alejandra Mina v. Ruperta Pascual, G.R. No. L-8321 / 25 Phil 540, 14 October 1913; Colito T. Pajuyo v. Court of Appeals, G.R. No. 146364 / 430 SCRA 492, 3 June 2004; Margarita Quintos v. Beck, G.R. No. L-46240 / 69 Phil 108, 3 November 1939; Producers Bank of the Philippines v. Hon. Court of Appeals, G.R. No. 115324 / 397 SCRA 651, 19 February 2003; Republic of the Philippines v. Jose V. Bagtas, G.R. No. L-17474 / 6 SCRA 262, 25 October 1962;
3. Mutuum a. General Concepts b. Obligation to Pay c. Interest Conventional Interest Escalation Clauses o Interest on Interest Compensatory, Penalty or Indemnity Interest Forbearance of Money o Legal Rate of Interest o Finance Charges
Act No. 2137, Warehouse Receipts Law, Sec. 58; Act No. 2655, Secs. 1, 7, and 7-a (as inserted by Presidential Decree No. 1684); Central Bank Circular No. 416, Series of 1974; Central Bank Circular No. 799, Series of 2013; New Civil Code, Arts. 1169, 1226, 1249-50, 1253, 1423, 1933, 1935-1961, 1980, 2154, 2209, 2212-13, and 2226-7; Republic Act No. 3765, Secs. 4 and 6; Angel Jose Warehousing Co., Inc. v. Childa Enterprises, G.R. No. L-25704 / 23 SCRA 119, 24 April 1968; Antonio Tan v. Court of Appeals and Cultural Center of the Philippines, G.R. No. 116285 / 419 Phil 857, 19 October 2001; Arwood Industries v. D.M. Consunji, Inc., G.R. No. 142277 / 394 SCRA 11, 11 December 2002; Bobie Rose V. Frias v. Flora San Diego-Sison, G.R. No. 155223 / 520 SCRA 244, 03 April 2007; BPI Family Bank v. Amado Franco, G.R. No. 123498 / 538 SCRA 184, 23 November 2007; Cleofe Velez v. Maximo Balzarsa, G.R. No. L-48389 / 73 Phil 630, 27 July 1942; Cu-Unjieng e Hijos v. Mabalacat Sugar Co., G.R. No. L-32644 / 54 Phil 976, 4 October 1930; Dario Nacar v. Gallery Frames, G.R. No. 189871, 13 August 2013; Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412 / 234 SCRA 78, 12 July 1994; Emerito M. Ramos v. Central Bank of the Philippines, G.R. No. L-29352 / 137 SCRA 685, 22 July 1985; Gil Jardenil v. Hefti Solas, G.R. No. L-47878 / 73 Phil 626, 24 July 1942; Hermojina Estores v. Sps. Arturo and Laura Supangan, G.R. No. 175139, 18 April 2012; Jesus T. David v. Court of Appeals, G.R. No. 115821 /316 SCRA 710, 13 October 1999; Josue Soncuya v. Juan Azarraga, G.R. No. L-43579 / 65 Phil 635, 14 June 1938; Leticia Y. Medel v. Court of Appeals, G.R. No. 131622 / 299 SCRA 481, 27 November 1998; Lirag Textile Mills v. Social Security System, G.R. No. L33205 / 153 SCRA 338, 31 August 1987; Lucia Tan v. Arador Valdehueza, G.R. No. L-38745 / 66 SCRA 61, 6 August 1975;
Mansueto Cuaton v. Rebecca Salud, G.R. No. 158382, 27 January 2004; Overseas Bank of Manila v. Vicente Cordero, G.R. No. L-33582 / 113 SCRA 303, 30 March 1982; Pedro Martinez v. Antonino Ramos, G.R. No. L-9417 / 28 Phil 589, 4 December 1914; People of the Philippines v. Teresa Puig and Romeo Porras, G.R. No. 173654-765 / 563 SCRA 564, 28 August 2008; Philippine National Bank v. Honorable Court of Appeals, G.R. No. 88880 / 196 SCRA 536, 30 April 1991; Republic of the Philippines v. Jose Grijaldo, G.R. No. L-20240 / 122 Phil 1020 / 15 SCRA 681, 31 December 1965; Sebastian Siga-an v. Alicia Villanueva, G.R. No. 173227 / 576 SCRA 696, 20 January 2009; Sentinel Insurance Co., Inc. v. Hon. Court of Appeals, G.R. No. L-52482 / 182 SCRA 517, 23 February 1990; Severino Tolentino v. Benito Gonzales Sy Chiam, G.R. No. 26085 / 50 Phil 558, 12 August 1927; Sps. Antonio and Manuela Concepcion v. Court of Appeals, G.R. No. 122079 / 274 SCRA 614, 27 June 1997; Sps. Ignacio F. and Alice P. Juico v. China Banking Corporation, G.R. No. 187678, 10 April 2013; The Royal Shirt Factory v. Co Bon Tic, G.R. No. L-6313 / 94 Phil 994, 14 May 1954; Tolomeo Ligutan v. Hon. Court of Appeals, G.R. No. 138677 / 376 SCRA 560, 12 February 2002; United Coconut Planters Bank v. Sps. Samuel and Odette Beluso, G.R. No. 159912 / 530 SCRA 567, 17 August 2007;
Usury General Concepts o Usurious Acts o Remedies o Remedy of Debtor Remedy of Creditor
Act. 2655; Monetary Board Resolution No. 796, 16 May 2013; Central Bank Circular No. 905-82, Sec. 1; New Civil Code, Arts. 1175, 1413, 1957 and 1961; Advocates for Truth in Lending, Inc. v. Bangko Sentral Monetary Board, G.R. No. 192986, 15 January 2013; Aurelio G. Briones v. Primitivo P. Cammayo, G.R. No. L-23559 / 41 SCRA 404, 4 October 1971; Danilo D. Mendoza v. Court of Appeals, G.R. No. 116710 / 359 SCRA 438, 25 June 2001; Dario Nacar v. Gallery Frames, supra.; Development Bank of the Philippines v. Bonita O. Perez, G.R. No. 148541, 11 November 2004; Dr. Ileana Macalinao v. Bank of the Philippines Islands, G.R. No. 75490, 17 September 2009; Eastern Assurance and Surety Corporation v. Hon. Court of Appeals, G.R. No. 127135 / 322 SCRA 73, 18 January 1999 Eastern Shipping v. Court of Appeals, supra.; First Metro Investment Corporation v. Este del Sol, G.R. No. 141811 / 369 SCRA 99, 15 November 2001; Investors Finance Corporation v. Autoworld Sales Corporation, G.R. No. 128990 / 340 SCRA 735, 21 September 2000; Jesus T. David v. Court of Appeals, supra.; Liam Law v. Olympic Sawmill Co., G.R. No. L-30771 / 124 SCRA 439, 28 May 1984; Pacita F. Reformina v. Hon. Valeriano P. Tomol, Jr., G.R. No. L-59096 / 139 SCRA 260, 11 October 1985; Paterno R. Plantilla v. Rodrgio G. Baliwag, A.M. No. P-00-1446 / 358 SCRA 396, 6 June 2001; Philippine National Bank v. Court of Appeals, G.R. No. 123643 / 263 SCRA 766, 30 October 1996; Philippine Rabbit Bus Lines v. Hon. Leonardo I. Cruz, G.R. No. 71017 / 143 SCRA 158, 28 July 1986; Purifcacion Pascua v. Hon. Jesus Y. Perez, G.R. No. L-19554 / 10 SCRA 199, 31 January 1964; Rizal Commercial Banking Corporation v. Alfa RTW Manufacturing Corporation, G.R. No.
133877 / 368 SCRA 611, 14 November 2001; Rodzssen Supply Co. Inc. v. Far East Bank & Trust Co., G.R. No. 109087 / 357 SCRA 618, 9 May 2001; Sps. Danilo and Ursula Solangon v. Jose Avelino Salazar, G.R. No. 125944 / 360 SCRA 379, 29 June 2001; Sps. Silvestre and Celia Pascual v. Rodrigo V. Ramos, G.R. No. 144712 / 384 SCRA 105, 4 July 2002; Teodoro Sanchez v. Hon. Carlos R. Bueviaje, G.R. No. L-57314 / 126 SCRA 208, 29 November 1983; C. Deposit 1. The Concept of Deposit 2. Voluntary Deposit a. General Concepts b. Obligation to Safekeep Way of the Deposit Liability for Loss and Damage Liability of Depositary o Liability of Depositor o Liability for Expenses c. Obligation to Return By Whom and To Whom What to Return Where to Return When to Return Right of Retention 3. Necessary Deposit a. General Concepts b. Examples of Necessary Deposit Compliance with a Legal Obligation On the Occasion of a Calamity Passenger Baggage with Common Carriers Hotels or Inns 4. Judicial Deposit
Act No. 2137, Warehouse Receipts Law; Act No. 3893, Bonded Warehouse Act; New Civil Code, Arts. 1962-2009, 2168, 1754; PD No. 115, Trust Receipts Law; Angel Javellana v. Jose Lim, G.R. No. 4015 / 11 Phil 141, 24 August 1908; Aniceta Palacio v. Dionisio Sudario, G.R. No. 2908 / 7 Phil 275, 2 January 1907; Atty. Dionisio Calibo v. Court of Appeals, G.R. No. 120528 / 350 SCRA 427, 29 January 2001; Bank of the Philippine Islands v. Hon. Court of Appeals, G.R. No. 104612 / 232 SCRA 302, 10 May 1994; Bank of the Philippine Islands v. Intermediate Appellate Court, G.R. No. L-66826 / 164 SCRA 630, 19 August 1988; CA Agro-Industrial Development Corp. v. Hon. Court of Appeals, G.R. No. 90027 / 219 SCRA 426, 3 March 1993; Consolidated Terminals, Inc. v. Artex Development Co., Inc., G.R. No. L-25748 / 63 SCRA 46, 10 March 1975; Jose O. Sia v. People of the Philippines, G.R. No. L-30896 / 121 SCRA 661, 28 April 1983; Lua Kian v. Manila Railroad Company, G.R. No. L-23033 / 19 SCRA 5, 5 January 1967; Manuel Garcia Gavieres v. T.H. Pardo de Tavera, G.R. No. L-6 / 1 Phil 71, 14 November 1901; Manuel M. Serrano v. Central Bank of the Philippines, G.R. No. L-30511 / 96 SCRA 96, 14 February 1980; Paulino Gullas v. Philippine National Bank, G.R. No. L-43191 / 62 Phil 519, 13 November 1935; Ramon Aboitiz v. Oquinena & Co., G.R. No. 12407 / 39 Phil 926, 22 July 1919; Ramon Gonzales v. Go Tiong, G.R. No. L-11776 / 104 Phil 492, 30 August 1958; Raul Sesbreno v. Hon. Court of Appeals, G.R. No. 89252 / 222 SCRA 466, 24 May 1993; Roman Catholic Bishop of Jaro v. Gregorio De La Pena, G.R. No. L-6913 / 26 Phil 144, 21 November 1913; Romeo delos Santos v. Tan Khey, G.R. No. 26695-R / 58 OG 7693, 30 July 1962;
Silvestra Baron v. Pablo David, G.R. Nos. L-26948-9 / 51 Phil 2, 8 October 1927; Sps. Tirso I. and Loreto D. Vintola v. Insular Bank of Asia and America, G.R. No. 73271 / 150 SCRA 578, 29 May 1987; Triple-V Food Services, Inc. v. Filipino Merchants Insurance Company, Inc., G.R. No. 160544, 21 February 2005; United States v. Jose M. Igpuara, G.R. No. L-7593 / 27 Phil 619, 27 March 1913; YHT Realty Corporation v. Court of Appeals, G.R. No. 126780 / 451 SCRA 638, 17 February 2005; D. General Bonded Warehouse and Warehouse Receipts 1. General Concepts 2. Obligations and Rights of a Warehouseman a. Obligation to Deliver b. Liability for Goods c. Warehouseman’s Lien 3. Negotiation and Transfer 4. Criminal Liability 5. General Bonded Warehouses
Act Nos. 2137, 3893
Alfredo N. Cruz v. Jose M. Valero, G.R. No. L-2826 / 89 Phil 260, 11 June 1951; American Foreign Banking Corporation v. J.R. Herridge, G.R. No. L-21005 / 49 Phil 975, 20 December 1924; Bank of the Philippines Islands v. J.R. Herridge, G.R. Nos. L-21000, 21002-04 and 21006 / 47 Phil 57, 20 December 1924; Commissioner of Internal Revenue v. Hawaiian-Philippines Company, G.R. No. L-16315 / 11 SCRA 256, 30 May 1964; Consolidated Terminals, Inc. v. Artex Development Co., Inc., supra.; DMG Incorporated v. Consolidated Terminals Inc., G.R. No. 34331-R / 8 CA Rep. 678, 30 October 1965; Felisa Roman v. Asia Banking Corporation, G.R. No. L-17825 / 46 Phil 705, 26 June 1922; Jose P. Martinez v. Philippine National Bank, G.R. No. L-4080 / 93 Phil 756, 21 September 1953; Liberata Antonio Estrada v. Court of Agrarian Relations, G.R. Nos. L-17481 and L17537-59 / 2 SCRA 986, 15 August 1961; Lua Kian v. Manila Railroad Company, G.R. No. L-23033 / 19 SCRA 5, 5 January 1967; Philippine National Bank v. Hon. Benito C. Se, G.R. No. 119231 / 256 SCRA 380, 18 April 1996; Philippine National Bank v. Hon. Marcelino L. Sayo, Jr., G.R. No. 129918 / 292 SCRA 202, 9 July 1998; Philippine National Bank v. Laureano Atendido, G.R. No. L-6342 / 94 Phil 255, 26 January 1954; Philippine National Bank v. Noah’s Ark Sugar Refinery, G.R. No. 107243 / 226 SCRA 36 1 September 1993; Philippine National Bank v. Producers’ Warehouse Association, G.R. No. L-16510 / 42 Phil 608, 9 January 1922; Ramon Gonzalez v. Co Thiong, G.R. No. L-11776 / 164 Phil 492, 30 August 1958; Siy Cong Bieng & Co., Inc. v. Hong Kong & Shanghai Banking Corporation, G.R. No. L34655 / 56 Phil 598, 5 March 1932;
II.
SECURITY TRANSACTIONS
A. The Concept of Security 1. General Concepts a. Distinguished from Securities b. Distinguished from Securitization 2. Events of Default 3. Kinds of Security Transactions a. Personal Security Transactions b. Real Security Transactions
Republic Act No. 8799, Sec. 3.1 Republic Act No. 10142, Sec. 4 (p) (ll) (kk) (jj) (qq) (pp) (t) B. Guaranty and Surety 1. General Concepts
2. Guaranty a. Form of Guaranty b. Obligations Secured c. Parties to a Guaranty d. Benefit of Excussion e. Right to Protection f. Right to Indemnification g. Right to Subrogation h. Rights of Co-Guarantors Benefit of Division Right to Reimbursement i. Extinguishment and Right of Release 3. Surety a. Form of Surety b. Obligations Secured c. Distinguished from Standby Letter of Credit d. Distinguished from Guaranty e. Distinguished from Joint and Solidary Obligations
Arts. 1211, 1216-17, 1236-37, 1403, 2047-2084
Aleida Saavedra v. W.S. Price, G.R. No. L-46702 / 68 Phil 699, 6 October 1939; Associated Insurance & Surety Co., Inc. v. Bacolod-Murcia Milling Co., Inc., G.R. No. L12333 / 105 Phil 246, 28 February 1959; Autocorp Group v. Intra Strata Assurance Corporation, G.R. No. 166662 / 556 SCRA 250, 27 June 2008; Benjamin Bitanga v. Pyramid Construction Engineering Corporation, G.R. No. 173526 / 563 SCRA 544, 28 August 2008; Carmen Castellvi de Higgins v. George C. Sellner, G.R. No. L-158025 / 41 Phil 142, 5 November 1920; Central Surety and Insurance Company, Inc. v. Hon. Alberto Q. Ubay, G.R. No. L-40334 / 135 SCRA 58, 28 February 1985; Charles Lee v. Court of Appeals, G.R. Nos. 117913-4 / 375 SCRA 579, 1 February 2002; Commonwealth Insurance Corporation v. Court of Appeals, G.R. No. 130886 / 421 SCRA 367, 29 January 2004; Corazon Vizconde v. Intermediate Appellate Court, G.R. No. 74231 / 149 SCRA 226, 10 April 1987; E. Zobel, Inc. v. Court of Appeals, G.R. No. 113931 / 290 SCRA 1, 6 May 1998; Emerita Garon v. Project Movers Realty and Development Corporation, G.R. No. 166058 / 520 SCRA 313, 4 April 2007; Estate of K. H. Hemady v. Luzon Surety Co., Inc. G.R. No. L-8437 / 100 Phil 388, 28 November 1956; Estrella Palmares v. Court of Appeals, G.R. No. 126490 / 288 SCRA 422, 31 March 1998; Fabiola Severino v. Guillermo Severino, G.R. No. 34642 / 56 Phil 187, 24 September 1931; Florentina De Guzman v. Anastacio R. Santos, G.R. No. L-45571 / 68 Phil 371, 30 June 1939; General Indemnity Co., Inc. v. Estanislao Alvarez, G.R. No. L-9434 / 100 Phil 1059, 29 March 1957; Hospicio de San Jose v. Fidelity and Surety Company of the Philippine Islands, G.R. No. L30247 / 52 Phil 926, 11 March 1929; Imperial Insurance, Inc. v. Hon. Walfrdo De Los Angeles, G.R. No. L-28030 / 111 SCRA 24, 18 January 1982; International Finance Corporation v. Imperial Textile Mills, Inc., G.R. No. 160324 / 475 SCRA 149, 15 November 2005; Intra-Strata Assurance Corporation v. Republic of the Philippines, G.R. No. 156571 / 557 SCRA 363, 9 July 2008; Jose C. Tupaz IV v. Court of Appeals, G.R. No. 145578 / 475 SCRA 398, 18 November 2005; Jose M. A. Arroyo v. Florentino Hilario Jungsay, G.R. No. L-10168 / 34 Phil 589, 22 July 1916; Jose Ma. Cacho v. J. A. Valles, G.R. No. L-19493 / 45 Phil 107 , 27 August 1923; Lirag Textile Mills, Inc. v. Social Security System, G.R. No. L-33205 / 153 SCRA 338, 31 August 1987; Luis Saenz de Vizmanos Ong-Quico v. Yap Chuan, G.R. No. L-5470 / 16 Phil 76, 22 March 1910; Luzon Steel Corporation v. Jose O. Sia, G.R. No. L-26449 / 28 SCRA 58, 15 May 1969; Manila Railroad Company v. Hon. Carmelino Alvendia, G.R. No. L-22137 / 17 SCRA 154, 19
May 1966; Manila Surety & Fidelity Co., Inc. v. Noemi Almeda, G.R. No. L-27249 / 34 SCRA 136, 31 July 1970; Manila Surety and Fidelity, Incf. v. Batu Construction and Company, G.R. No. L-9353 / 101 Phil 494, 21 May 1957; Mira Hermanos, Inc. v. Manila Tobacconists, Inc., G.R. No. L-48979 / 74 Phil 367, 29 September 1943; Municipality of Gasan v. Miguel Marasigan, G.R. No. 43486 / 63 Phil 510, 30 September 1956; National Marketing Corporation v. Gabino Marquez, G.R. No. L-25553 / 26 SCRA 722, 31 January 1969; Philippine Blooming Mills, Inc. v. Court of Appeals, G.R. No. 142381 / 413 SCRA 445, 15 October 2003; Philippine Export and Foreign Loan Guarantee Corporation v. V.P. Eusebio Construction, Inc., G.R. No. 140047 / 434 SCRA 202, 13 July 2004; Philippine National Bank v. Luzon Surety Co., Inc., G.R. No. L-29587 / 68 SCRA 207, 28 November 1975; Philippine National Bank v. Manila Surety and Fidelity Co., Inc., G.R. No. L-20567 / 14 SCRA 776, 30 July 1965; Plaridel Surety and Insurance Co., Inc. v. P.L. Galang Machinery Co., Inc., G.R. No. L-9542 / 100 Phil 679, 11 January 1957; Radio Corporation of the Philippines v. Jesus R. Roa, G.R. No. 42829 / 62 Phil 211, 30 September 1935; Republic of the Philippines v. Pal-Fox Lumber Co., Inc., G.R. No. L-26473 / 43 SCRA 365, 29 February 1972; Rizal Commercial Banking Corporation v. Hon. Jose P. Arro, G.R. No. L-49401 / 115 SCRA 777, 30 July 1982; Romulo Machetti v. Hospicio de San Jose, G.R. No. L-16666 / 43 Phil 297, 10 April 1922; Rosa Villa v. Guillermo Garcia Bosque, G.R. No. L-24543 / 49 Phil 126, 12 July 1926; Salvador P. Escano v. Rafael Ortigas, Jr., G.R. No. 151953 / 526 SCRA 26, 29 June 2007; Security Bank and Trust Company, Inc. v. Rodolfo M. Cuenca, G.R. No. 138544 / 341 SCRA 781, 3 October 2000; Smith, Bell & Company, Ltd. v. Philippine National Bank, G.R. No. 16482 / 42 Phil 733, 1 February 1922; Southern Motors, Inc. v. Eliseo Barbosa, G.R. No. L-9306 / 99 Phil 263, 25 May 1956; Sps. Alfredo and Susana Ong v. Philippine Commercial International Bank, G.R. No. 160466, 17 January 2005; Standard Oil Co. of New York v. Cho Siong, G.R. No. L-29588 / 52 Phil 612, 29 December 1928; Traders Insurance and Surety Company v. Dy Eng Giok, G.R. No. L-9073 / 104 Phil 806, 17 November 1958; Tuason, Tuason Inc. v. Antonio Machuca, G.R. No. L-22177 / 46 Phil 561, 2 December 1924; Willex Plastic Industries Corporation v. Hon. Court of Appeals, G.R. No. 103066 / 256 SCRA 478, 25 April 1996; Wise & Co. (Ltd.) v. James Kelly, G.R. No. L-11073 / 37 Phil 696, 21 February 1918; Wise & Co., Inc. v. Dionisio P. Tanglao, G.R. No. L-42518 / 63 Phil 372, 29 August 1936; C. Pledge and Mortgage 1. General Concepts 2. Obligations Secured 3. Contract to Pledge or to Mortgage 4. Remedies of Pledgee and Mortgagee 5. Indivisibility of a Pledge or Mortgage 6. Pactum Commissorium a. Elements b. Effect on Pledge or Mortgage 7. Equitable Mortgage
Articles 1602-1605, 2085 – 2092
Cavite Development Bank v. Sps. Cyrus and Lolita Chan Lim, G.R. No. 131679 / 324 SCRA 346, 1 February 2000; Cebu International Finance Corporation v. Court of Appeals, G.R. No. 107554 / 268 SCRA 178, 13 February 1997; Central Bank of the Philippines v. Hon. Court of Appeals, supra.;
Cristina vda. De Bautista v. Brigida Marcos, G.R. No. L-17072 / 3 SCRA 434, 31 October 1961; D.J. Mahoney v. Mariano Tuason, G.R. No. 14129 / 39 Phil 952, 30 July 1919; Development Bank of the Philippines v. Court of Appeals, G.R. No. 118342 / 284 SCRA 14, 5 January 1998; Development Bank of the Philippines v. Prudential Bank, G.R. No. 143772 / 475 SCRA 623, 22 November 2005; Dr. Roberto De Leon v. Eduardo Calalo, G.R. No. 152332 / 391 SCRA 752, 15 November 2002; Estanislaua Arenas v. Fausto O. Raymundo, G.R. No. L-5741 / 19 Phil 46, 13 March 1911; Mamera vda. de Jayme v. Hon. Court of Appeals, G.R. No. 128669 / 390 SCRA 380, 4 October 2002; Maria Bautista vda. de Reyes v. Martin de Leon, G.R. No. L-22331 / 20 SCRA 369, 6 June 1967; Metropolitan Bank and Trust Company, Inc. v. SLGT Holdings, Inc., G.R. Nos. 175181-82, 175354 and 175387-88 / 533 SCRA 516, 14 September 2007; Natalia P. Bustamante v. Sps. Rodito F. and Norma A. Rosel, G.R. No. 126800 / 319 SCRA 413, 29 November 1999; Pedro Alcantara v. Ambrosio Alinea, G.R. No. 3227 / 8 Phil 110, 22 March 1907; Philippine National Bank v. Paz Agudelo, G.R. No. L-39037 / 58 Phil 655, 30 October 1933; Rosana Erena v. Vida Dana Querrer-Kauffman, G.R. No. 165853 / 492 SCRA 298, 22 June 2006; Rural Bank of Caloocan, Inc. v. Court of Appeals, G.R. No. L-32116 / 104 SCRA 151, 21 April 1981; Sps. Enrique M. and Florencia G. Belo v. Philippine National Bank, G.R. No. 134330 / 353 SCRA 359, 1 March 2001; Sps. Vicente and Demetria Yu v. Philippine Commercial International Bank, G.R. No. 147902 / 485 SCRA 56, 17 March 2006; Sps. Wilfredo N. Ong and Edna Sheila Paguio-Ong v. Roban Lending Corporation, G.R. No. 172592 / 557 SCRA 516, 9 July 2008; Union Motor Corporation v. Court of Appeals, G.R. No. 117187 / 361 SCRA 506, 20 July 2001; Vincent P. Dayrit v. Court of Appeals, G.R. No. L-29388 / 36 SCRA 549, 28 December 1970; D. Pledge 1. General Concepts 2. Form of Pledge 3. Obligations Secured 4. Object of Pledge 5. Ownership of Collateral 6. Rights of Third Party Pledgor 7. Right to Possession a. Right of Retention b. Right to Payment 8. Return of Collateral 9. Foreclosure of Pledge a. Who May Bid b. Effect of Notarial Sale Extinction of Principal Obligation Right of Redemption Right to Surplus or Deficiency 10. Legal Pledges a. Examples of Legal Pledges b. Foreclosure of Legal Pledge
Arts. 416-17, 546, 1731, 1944, 1951, 1994, 2004, 2066-70, 2079-81, 2085, 2087, 20932123; Supreme Court Circular 32-2001; Citibank, N.A. v. Modesta R. Sabeniano, G.R. No. 156132 / 504 SCRA 378, 12 October 2006; Cornelio Cruz v. Chua A. H. Lee, G.R. No. L-31018 / 54 Phil 10, 6 November 1929; Diosdado Yuliongsiu v. Philippine National Bank, G.R. No. L-19227 / 22 SCRA 585, 17 February 1968; Estate of George Litton v. Ciriaco B. Mendoza, G.R. No. L-49120 / 163 SCRA 246, 30 June 1988;
Filomena Sarmiento v. Glicerio Javellana, G.R. No. L-18500 / 43 Phil 880, 2 October 1922; Fort Bonifacio Development Corporation v. Yllas Lending Corporation, G.R. No. 158997 / 567 SCRA 454, 6 October 2008; Manila Banking Corporation v. Anastacio Teodoro, Jr., G.R. No. L-53955 / 169 SCRA 95, 13 January 1989; Manila Surety and Fidelity Company, Inc. v. Rodolfo R. Velayo, G.R. No. L-21069 / 21 SCRA 515, 26 October 1967; Ocejo, Perez & Co. v. International Banking Corporation, G.R. No. L-10658 / 37 Phil 631, 14 February 1918; Philippine National Bank v. Laureano Atendido, G.R. No. L-6342 / 94 Phil 254, 26 January 1954; Sps. Bonifacio and Faustina Paray v. Dra. Abdulia C. Rodriguez, G.R. No. 132287 / 479 SCRA 571, 24 January 2006; Victoria Yau Chu v. Hon. Court of Appeals, G.R. No. L-78519, 26 September 1989; E. Pawnshop Regulation Act
Presidential Decree No. 114;
Enrico B. Villanueva v. Sps. Alejo and Virginia Salvador, G.R. No. 139436, 25 January 2006; First Planters Pawnshop, Inc. v. Commissioner of Internal Revenue, G.R. No. 174134, 30 July 2008; Gloria Sondayon v. P.J. Lhuiller, Inc., G.R. No. 153587, 27 February 2008; H. Tambunting Pawnshop, Inc. v. Commissioner of Internal Revenue, G.R. No. 171138, 7 April 2009 Loreta Serrano v. Court of Appeals, G.R. No. 45125, 22 April 1991; Pilipinas Loan Company, Inc. v. Hon. Securities and Exchange Commission, G.R. No. 104720, 4 April 2001; Roberto C. Sicam v. Lulu and Cesar Jorge, G.R. No. 159617, 8 August 2007;
F. Real Estate Mortgage 1. General Concepts 2. Form of Real Estate Mortgage 3. Obligations Secured 4. Object of Real Estate Mortgage a. After Acquired Properties b. Effect and Extent 5. Right to Alienate Real Estate Mortgage Credit 6. Right to Alienate Collateral 7. Foreclosure of Real Estate Mortgage a. Judicial Foreclosure Judgment on Foreclosure Equity of Redemption Foreclosure Sale Right of Redemption Right to Surplus or Deficiency b. Extrajudicial Foreclosure Special Powers Foreclosure Sale Requirement of Notice o Conduct of Sale o Right of Redemption Who may Redeem o How to Redeem o Right to Deficiency Right to Surplus Right to Possession During Redemption Period o After Consolidation of Ownership o When Held by a Third Party o
A.M. No. 99-10-05-0, as amended, 7 August 2001 Act. No. 3135, as amended by Act No. 4118 Arts. 415, 1625, 1627, 2085, 2087, 2124-2131, New Civil Code PD 1529, Sec. 63 PD 1079
PD 694, The PNB Act RA 85, as amended, The DBP Act Rule 39, Secs. 16, 27-34, Rule 68 and 86, Sec. 7, Rules of Court SC Circular 07-02) Section 47, Republic Act 8791 General Banking Act of 2000 Alpha Insurance and Surety Co., Inc. v. Esperanza C. Reyes, G.R. No. L-26274 / 106 SCRA 274, 31 July 1981; Antonio Chieng v. Sps. Eulogio and Teresita Santos, G.R. No. 169647 / 531 SCRA 730, 31 August 2007; Antonio G. Tady-y v. Philippine National Bank, G.R. No. L-18817 / 12 SCRA 19, 28 September 1964; Apolonia Santiago v. Angela Dionisio, G.R. No. L-4008 / 92 Phil 495, 15 January 1953; Bank of America v. American Realty Corporation, G.R. No. 133876 / 321 SCRA 659, 29 December 1999; Bank of the Philippine Islands v. Concepcion E. Hijos, Inc., G.R. No. 27701 / 53 Phil 806, 21 July 1928; BPI Family Savings Bank, Inc. v. Golden Power Diesel Sales Center, Inc., G.R. No.176019 / 639 SCRA 405, 12 January 2011; Candida Piano v. Generosa Cayanong, G.R. No. L-18603 / 7 SCRA 397, 28 February 1963; Carlo Lezama Bundalian v. Hon. Court of Appeals, G.R. No. 55739 / 129 SCRA 645, 22 June 1984; China Banking Corporation v. Sps. Oscar and Lolita Ordinario, G.R. No. 121943 / 399 SCRA 430, 24 March 2003; Cua Lai Chu v. Hon. Hilario L. Laqui, G.R. No. 169190, 11 February 2010; Development Bank of the Philippines v. Alejandro and Adelaida Licuanan, G.R. No. 150097 / 516 SCRA 644, 26 February 2007; Development Bank of the Philippines v. Dionisio Mirang, G.R. No. L-29130 / 66 SCRA 141, 8 August 1975; Development Bank of the Philippines v. Veronica Aguirre, G.R. No. 144877 / 364 SCRA 755, 7 September 2001; Dionisio Fiestan v. Court of Appeals, G.R. No. 81552 / 185 SCRA 751, 28 May 1990; Donna C. Nagtalon v. United Coconut Planters Bank, G.R. No. 172504, 31 July 2013; E. C. McCullough & Co., Inc. v. Mariano Veloso, G.R. No. L-21455 / 46 Phil 1, 5 April 1924; Eduardo Lucena v. Court of Appeals, G.R. No. L-77468 / 313 SCRA 47, 25 August 1999; First Marbella Condominium Association, Inc. v. Augusto Gatmaytan, G.R. No. 163196 / 557 SCRA 155, 4 July 2008; Godfrey Bohanan v. Court of Appeals, G.R. No. 111654 / 256 SCRA 355, 18 April 1996; Goldenway Merchandising Corporation v. Equitable PCI Bank, G.R. No. 195540, 13 March 2013; Grand Farms, Inc. v. Court of Appeals, G.R. No. 91779 / 193 SCRA 748, 7 February 1991; Heirs of the Late Spouses Flaviano Maglasang and Salud-Adaza Magsalang v. Manila Banking Corporation, G.R. No. 171206, 23 September 2013; Hermenegildo R. Rosales v. Peregrin Yboa, G.R. No. L-42282 / 120 SCRA 869, 28 February 1983; Home Bankers Savings & Trust Co., v. Hon. Court of Appeals, G.R. No. 128354 / 457 SCRA 167, 26 April 2005; Huerta Alba Resort Inc. v. Court of Appeals, G.R. No. 128567 / 339 SCRA 534, 1 September 2000; Ibaan Rural Bank Inc. v. Court of Appeals, G.R. No. 123817 / 321 SCRA 88, 17 December 1999; Isabel Ocampo v. Ignacio Domalanta, G.R. No. L-21011 / 20 SCRA 1136, 30 August 1967; Korea Exchange Bank v. Filkor Business Integrated, Inc., G.R. No. 138292 / 380 SCRA 381, 10 April 2002; Ladislao Afable v. Carmen Belando, G.R. No. L-32154 / 55 Phil 64, 20 October 1930; Langkaan Realty Development, Inc. v. United Coconut Planers Bank, G.R. No. 139437 / 347 SCRA 542, 8 December 2000; Leonardo Tioseco v. Hon. Court of Appeals, G.R. No. L-66597 / 143 SCRA 705, 29 August 1986; Leticia Co v. Philippine National Bank, G.R. No. L-51767 / 114 SCRA 842, 29 June 1982; Manuel D. Medida v. Court of Appeals, G.R. No. 98334 / 208 SCRA 887, 8 May 1992; Manuel Lopez v. Evaristo Alvarez, G.R. No. L-3438 / 9 Phil 28, 12 October 1907; Manuel R. Dulay v. Hon. Judge Glicerio V. Carriaga, G.R. No. L-52831 / 123 SCRA 794, 29 July 1983;
Marcelo Steel Corporation v. Court of Appeals, G.R. Nos. L-34317 ans L-34335 / 54 SCRA 89, 28 November 1973; Marylou B. Tolentino, M.D. v. Court of Appeals, G.R. No. 171354 / 517 SCRA 732, 7 March 2007; Metropolitan Bank and Trust Company v. Eugenio Peñafiel, G.R. No. 173976, 27 February 2009; Metropolitan Bank and Trust Company v. Francisco Y. Wong, G.R. No. 120859 / 359 SCRA 608, 26 June 2001; Metropolitan Bank and Trust Company v. Sps. Elisa and Antonio Tan, G.R. No. 178449 / 569 SCRA 814, 17 October 2008; Mobil Oil Philippines v. Ruth R. Diocares, G.R. No. L-26371 / 29 SCRA 656, 30 September 1969; Nimfa G. Ramirez v. Court of Appeals, G.R. No. 98147 / 219 SCRA 518, 5 March 1993; Norberto L. Dilag v. Legal Heirs of Fortunate Resurreccion, G.R. No. 48941 / 76 Phil 650, 6 May 1946; Pablo P. Garcia v. Yolanda Valdez Villar, G.R. No. 158891, 27 June 2012; Paz Samanilla v. Cenen A. Cajucom, G.R. No. L-13683 / 107 Phil 432, 28 March 1960; People’s Bank & Trust Co. v. Dahican Lumber Company, G.R. No. L -17500 / 20 SCRA 84, 16 May 1967; Pepito Velasco v. Court of Appeals, G.R. No. L-47544 / 95 SCRA 616, 28 January 1980; Philippine Bank of Commerce v. Higninio B. Macadaeg, G.R. No. L-14174 / 109 Phil 981, 31 October 1960; Philippine National Bank v. Court of Appeals, G.R. No. 98382 / 222 SCRA 134, 17 May 1993; Philippine National Bank v. Hon. Court of Appeals, G.R. No. L-60208 / 140 SCRA 360, 5 December 1985; Philippine National Bank v. Hon. Midpantao Adil, G.R. No. L-52823 / 118 SCRA 110, 2 November 1982; Philippine National Bank v. Nepomuceno Productions, Inc., G.R. No. 139479 / 394 SCRA 405, 27 December 2002; Philippine National Bank v. Sps. Tomas Cabatingan and Agapita Edullantes, G.R. No. 167058 / 552 SCRA 426, 9 July 2008; Philippine Sugar Estate v. Armando Camps, G.R. No. L-11607 / 36 Phil 85, 17 January 1917; Prudential Bank v. Don A. Alviar, G.R. No. 150197 / 464 SCRA 353, 28 July 2005; Prudential Bank v. Hon. Domingo D. Panis, G.R. No. L-50008 / 153 SCRA 390, 31 August 1987; Quirino Gonzales Logging Concessionaire v. Court of Appeals, G.R. No. 126568 / 402 SCRA 181, 30 April 2003; Renato Cristobal v. Court of Appeals, G.R. No. 124372 / 328 SCRA 256, 16 March 2000; Rodolfo Lanuza v. Martin de Leon, G.R. No. L-22331 / 20 SCRA 369, 6 June 1967; Sps. Esmeraldo and Elizabeth Suico v. Philippine National Bank, G.R. No. 170215 / 531 SCRA 514, 28 August 2007; Sps. Francisco and Merced Rabat v. Philippine National Bank, G.R. No. 158755, 18 June 2012; Sps. Francisco D. and Whelma Yap v. Sps. Zosimo Sr. and Natividad Chiu Dy, G.R. Nos. 171868 and 171991, 27 July 2011; Sps. Leopoldo S. and Mercedita Viola v. Equitable PCI Bank, Inc., G.R. No. 177886 / 572 SCRA 245, 27 November 2008; Sps. Maximo Landrito, Jr. and Pacita Edgalani v. Hon. Court of Appeals, G.R. No. 133079 / 466 SCRA 107, 9 August 2005; Sps. Norberto & Elvira Oliveros v. Hon. Presiding Judge, Regional Trial Court, Br. 24, Binan, Laguna, G.R. No. 165963 / 532 SCRA 109, 3 September 2007; Sps. Reynaldo K. Litonjua and Erlinda P. Litonjua v. L&R Corporation, G.R. No. 130722 / 320 SCRA 405, 9 December 1999; Sps. Rodrigo and Sonia Paderes v. Hon. Court of Appeals, G.R. Nos. 147074-5 / 463 SCRA 504, 15 July 2005; Sps. Ruben and Violeta Saguan v. Philippine Bank of Communications, G.R. No. 159882 / 538 SCRA 390, 23 November 2007; Star Two (SPV-AMC), Inc. v. Paper City Corporation of the Philippines, G.R. No. 169211, 6 March 2013; Suico Rattan & Buri Interiors, Inc. v. Court of Appeals, G.R. No. 138145 / 490 SCRA 560, 15 June 2006; Teresita Monzon v. Sps. James & Maria Nieves Relova, G.R. No. 171827 / 565 SCRA 514, 17 September 2008; Union Bank of the Philippines v. Court of Appeals, G.R. No. 133366 / 311 SCRA 795, 5 August 1999; Zacarias Cometa v. Court of Appeals, G.R. No. 141855 / 351 SCRA 294, 6 February 2001;
G. Chattel Mortgage 1. General Concepts 2. Form of Chattel Mortgage 3. Obligations Secured 4. Object of Chattel Mortgage a. Reasonable Description Rule b. After Acquired Properties 5. Ownership of Collateral 6. Foreclosure of Chattel Mortgage a. Equity of Redemption b. Right of Redemption c. Right to Possession d. Right to Surplus or Deficiency
Arts. 416-417, 1481-1485, 2085, 2087, 2124, 2140-2141 Chattel Mortgage Law (Act No. 1508) Art. 319, RPC SC Circular 7-02 (22 April 2007) Acme Shoe, Rubber & Plastic Corporation v. Court of Appeals, supra.; Allied Banking Corporation v. Hon. Emilio V. Salas, G.R. No. L-49081 / 168 SCRA 414, 13 December 1988; BA Finance Corporation v. Hon. Court of Appeals, G.R. No. 82040 / 201 SCRA 157, 27 August 1991; Bicol Savings & Loan Association v. Jamie Guinhawa, G.R. No. L-62415 / 188 SCRA 642, 20 August 1990; BPI Credit Corporation v. Hon. Court of Appeals, G.R. No. 96755 / 204 SCRA 601, 4 December 1991; Delfin Montano v. Jose Lim Ang, G.R. No. L-13057 / 7 SCRA 250 / 117 Phil 262, 27 February 1963; Florentina Aleman v. Presentacion de Catera, G.R. Nos. L-13693-4 / 1 SCRA 776 / 111 Phil 377, 25 March 1961; Luis G. Ablaza v. Gabriel A. Ignacio, G.R. No. L-11466 / 103 Phil 1151, 23 May 1958; Macondray and Co., Inc. v. Antonio E. Ruiz, G.R. No. L-44671 / 66 Phil 562, 26 November 1938; Magna Financial Services Group v. Elias Colarina, G.R. No. 158635 / 477 SCRA 245, 9 December 2005; Makati Leasing and Finance Corporation v. Wearever Textile Mills, Inc., G.R. No. L58469 / 122 SCRA 296, 16 May 1983; Manolo P. Cerna v. Hon. Court of Appeals, G.R. No. L-48359 / 220 SCRA 517, 30 March 1993; Montelibano Esguerra v. Hon. Court of Appeals, G.R. Nos. L-40062 and L-40102 / 173 SCRA 1, 3 May 1989; Montelibano Esguerra v. Hon. Court of Appeals, G.R. Nos. L-40062, L-40102 / 173 SCRA 1, 3 May 1989; Northern Motors, Inc. v. Hon. Jorge R. Coquia, G.R. No. L-40018 / 68 SCRA 374, 15 December 1975; PAMECA Wood Treatment Plant, Inc. v. Hon. Court of Appeals, G.R. No. 106435 / 310 SCRA 281, 14 July 1999; PCI Leasing and Finance, Inc. v. Trojan Metal Industries Incorporated, G.R. No. 176381 / 638 SCRA 615, 15 December 2010; Perfecto Dy, Jr. v. Court of Appeals, G.R. No. 92989 / 198 SCRA 826, 8 July 1991; Rizal Commercial Banking Corporation v. Royal Cargo Corporation, G.R. No. 179756 / 602 SCRA 545, 2 October 2009; Ruby L. Tsai v. Court of Appeals, G.R. No. 120098 / 366 SCRA 324, 2 October 2001; Salvador Piansay v. Conrado S. David, G.R. No. L-19468 / 12 SCRA 227, 30 October 1964; Servicewide Specialists, Inc. v. Court of Appeals, G.R. No. 110048 / 318 SCRA 493 / 320 SCRA 478, 19 November 1999; Superlines Transportation Company, Inc. v. ICC Leasing and Financing Corporation, G.R. No. 150673 / 398 SCRA 508, 28 February 2003; H. Ship Mortgage Decree
Presidential Decree 1521, The Ship Mortgage Decree of 1978;
Cebu International Finance Corporation v. Court of Appeals, supra.;
Crescent Petroleum, Ltd. v. M/V “Lok Maheshwari,” G.R. No. 155014, 11 November 2005; Negros Navigation Co., Inc. v. Court of Appeals, G.R. No. 163156 and 166845, 10 December 2008; Philippine National Bank v. Court of Appeals, G.R. No. 128661, 8 August 2000; Poliand Industrial Limited v. National Development Company, G.R. Nos. 143866 and 143877, 22 August 2005; I.
Antichresis 1. General Concepts 2. Form of Antichresis 3. Right of Retention 4. Foreclosure of Antichresis
New Civil Code, Arts. 2085, 2089-91, 2132-2139
Alberto Barretto v. Leonardo F. Barretto, G.R. No. L-11933 / 37 Phil 234, 1 December 1917; Cecilio Diego v. Segundo Fernando, G.R. No. L-15128 / 109 Phil 143, 25 August 1960; Cipriano E. Samonte v. Hon. Court of Appeals, G.R. No. L-44841 / 141 SCRA 189, 27 January 1986; Hilario Ramirez v. Hon. Court of Appeals, G.R. No. L-38185 / 144 SCRA 292, 24 September 1986; Licerio Legazpi v. Damaso Celestial, G.R. Nos. L-43673 / 66 Phil 372, 24 October 1938; Oscar and Emerita Angeles v. Hon. Secretary of Justice, G.R. No. 142612 / 465 SCRA 106, 29 July 2005; Peralta v. Quimpo (CA), 51 OG 3, p. 1383, 02 September 1954; Perfecto de la Vega v. Tomas Ballilos, G.R. No. L-9957 / 34 Phil 683, 8 August 1916; Recaredo F. Pando v. Antonio Gimenez, G.R. No. L-31816 / 54 Phil 459, 15 February 1930; Remedios S. Villanueva v. Juan Ipondo, G.R. No. 885-R / 44 O.G. No. 11, 24 September 1947;
J.
Letters of Credit 1. General Concepts 2. Kinds of Letters of Credit a. Commercial Letters of Credit b. Standby Letters of Credit 3. Rule of Strict Compliance 4. Independence Principle
Code of Commerce, Articles 2, 567 and 568;
Transfield Philippines, Inc. v. Luzon Hydro Corporation, G.R. No. 146717 / 443 SCRA 307, 22 November 2004; K. Trust Receipts 1. General Concepts 2. Form of Trust Receipts 3. Rights of Entruster 4. Obligations of Entrustee 5. Rights of Purchaser
Presidential Decree No. 115;
Melvin Colinares v. Court of Appeals, G.R. No. 90828 / 339 SCRA 609, 5 September 2000;
III.
INSOLVENCY AND PREFERENCE OF CREDITS A. The Concept of Insolvency 1. Nature of Insolvency Proceedings 2. Civil and Criminal Liability in Insolvency Proceedings
Art. 2236-37 Republic Act No. 10142, Secs. 2-4, 6-7, 10, 145-148 B. Concurrence & Preference of Credits 1. General Concepts 2. Classification of Credits a. Special Preferred Credits b. Ordinary Preferred Credits
c. Common Credits
Act No. 1956, as amended, Insolvency Law Art. 2236-2251 P. D. No. 442, Art. 110 Republic Act No. 10142, Secs. 62, 133, 136 Central Bank of the Philippines v. Hon. Jesus P. Morfe, G.R. No. L-38427 / 63 SCRA 114, 12 March 1975; Development Bank of the Philippines v. Court of Appeals, G.R. No. 126200 / 363 SCRA 307, 16 August 2001; Felisa Roman v. Asia Banking Corporation, G.R. No. L-17825 / 46 Phil 705, 26 June 1922; Francisco C. Manabat v. Laguna Federation of Facomas, Inc., G.R. No. L-23888 / 19 SCRA 621, 18 March 1967; J.L. Bernardo Construction v. Court of Appeals, G.R. No. 105827 / 324 SCRA 24, 31 January 2000; Jose Cordova v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, G.R. No. 146555 / 526 SCRA 300, 3 July 2007; Magdalena C. De Barreto v. Jose G. Villanueva, G.R. No. L-14938 / 1 SCRA 288, 28 January 1961; Magdalena C. De Barreto v. Jose G. Villanueva, G.R. No. L-14938 / 1 SCRA 288, 29 December 1962; Philippine Commercial and Industrial Bank v. National Mines & Allied Workers Union, G.R. No. L-50402 / 115 SCRA 873, 19 August 1982; Philippine Savings Bank v. Hon. Gregorio T. Lantin, G.R. No. L-33929 / 124 SCRA 476, 2 September 1983; Sampaguita Pictures, Inc. v. Jalwindor Manufacturers, Inc., G.R. No. L-43059 / 93 SCRA 420, 11 October 1979; Zosimo D. Uy v. Jose R. Zamora, G.R. No. L-19482 / 13 SCRA 508, 31 March 1965; C. Suspension of Payments 1. General Concepts a. Automatic Stay b. Suspension Order c. Injunction Against Debtor 2. Commissioner 3. Creditors’ Meeting 4. Proposed Agreement 5. Treatment of Claims a. Secured Creditor Claims b. Exempt Claims c. Excluded Claims
Republic Act No. 10142, Sec. 2, Sec. 94-102 D. Rehabilitation 1. General Concepts 2. Court-Supervised Rehabilitation a. Voluntary Proceedings b. Involuntary Proceedings c. Provisions Common to Voluntary and Involuntary Proceedings Commencement Order Stay or Suspension Order General Concepts o Exceptions to Stay or Suspension Order o Subsequent Actions Rehabilitation Receiver General Concepts o Powers, Duties and Responsibilities o Creditors’ Committees Management Committee Claims Determination of Claims o Treatment of Claims o Secured Creditor Claims
Rehabilitation
Employee Claims Excluded Claims Treatment of Assets Unencumbered Assets o Encumbered Assets o Treatment of Contracts Confirmation or Termination of Contracts o Avoidance Proceedings o Rehabilitation Plan General Concepts o Cram Down Effect o Termination of Proceedings Conversion to Liquidation Proceedings 3. Pre-negotiated Rehabilitation, 4. Out-of-Court Rehabilitation a. General Concepts b. Benefits of Out-of-Court Rehabilitation
Republic Act No. 10142, Secs. 2, 4(c), 8-9, 12-89, 92
Bank of the Philippine Islands v. Sarabia Manor Hotel Corporation, G.R. No. 175844, 29 July 2013; Bank of the Philippine Islands v. Securities and Exchange Commission, G.R. No. 164641 / 541 SCRA 294, 20 December 2007; Metropolitan Waterworks and Sewerage System v. Hon. Reynaldo B. Daway, G.R. No. 160732 / 432 SCRA 559, 21 June 2004; Jose Marcel Panlilio v. Regional Trial Court, Branch 51, City of Manila, G.R. No. 173846 / 641 SCRA 438, 2 February 2011; Rizal Commercial Banking Corporation v. Intermediate Appellate Court, G.R. No. 74851 / 320 SCRA 279, 9 December 1999; Situs Development Corporation v. Asiatrust Bank, G.R. No. 180036, 25 July 2012; Sps. Eduardo and Fidela Sobrejuanite v. ASB Development Corporation, G.R. No. 165675 / 471 SCRA 763, 30 September 2005; Town and Country Enterprises, Inc. v. Hon. Norberto J. Quisumbing, Jr., G.R. Nos. 173610 and 174132, 1 October 2012;
E. Liquidation 1. General Concepts 2. Liquidation of Insolvent Individual Debtor a. Voluntary Liquidation b. Involuntary Liquidation Acts of Insolvency Show Cause Order; Injunction; Default Absent Individual Debtor Custody of Property; Sale of Property 3. Liquidation of Insolvent Juridical Debtors a. Voluntary Liquidation b. Involuntary Liquidation 4. Provisions Common to Liquidation of Individual and Juridical Debtors a. Liquidation Order b. Liquidator General Concepts Powers, Duties and Responsibilities c. Claims Determination of Claims Treatment of Claims Secured Creditor Claims, o Unsecured Creditor Claims o d. Treatment of Contracts Termination or Breach of Contracts Avoidance Proceedings e. Liquidation Plan f. Termination of Proceedings 5. Ancillary Proceedings a. Securities Market Participant b. Banks and Other Financial Institutions Under Rehabilitation Receivership Pursuant to a State-funded or State-mandated Insurance System
c. Cross-Border Insolvency Proceedings
Art. 2238 to 2240 Republic Act No. 10142, Sec. 2, 4, 29, 58 , 90, 93, 103-121, 123-142 Consuelo Metal Corporation, v. Planters Development Bank, G.R. No. 152580 / 555 SCRA 465, 26 June 2008; Manuel D. Yngson, Jr. v. Philippine National Bank, G.R. No. 171132, 15 August 2012.
CLASS CALENDAR:
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
16 June 2014 23 June 2014 30 June 2014 07 July 2014 14 July 2014 21 July 2014 28 July 2014 04 August 2014 11 August 2014 18 August 2014 25 August 2014 01 September 2014 08 September 2014 15 September 2014 22 September 2014 29 September 2014 06 October 2014
--The Concept of Credit / The Concept of Loan Commodatum and Mutuum Deposit General Bonded Warehouse and Warehouse Receipts The Concept of Security / Guaranty and Surety MIDTERM EXAMINATIONS Pledge and Mortgage / Pledge / Pawnshop Regulation Real Estate Mortgage Chattel Mortgage Ship Mortgage and Antichresis Letters of Credit and Trust Receipts
Insolvency and Preference of Credits FINAL EXAMINATIONS
GRADE BREAKDOWN:
RECITATION MIDTERM EXAMINATIONS FINAL EXAMINATIONS TOTAL:
33.33% 33.33% 33.33% 100.00%
CONTACT INFORMATION:
For consultations and what not, you may email me through
[email protected]. You can similarly ask for consultations through my office, landline number (02) 584-1807.
