CREDIT TRANSACTIONS August 19, 2022

Course Outline

LOAN (Articles 1933-1961 NCC)

General Provisions (Arts. 1933-1934 NCC)

 People vs. Concepcion (44 Phil. 126 [1922])

 Re: Anonymous Letter-Complaint on the Alleged Involvement and for Engaging
in the Business of Lending Money at Usurious Rates of Interest of Ms. Dolores
T. Lopez, SC Chief Judicial Staff Officer, and Mr. Fernando M. Montalvo, SC
Supervising Judicial Staff Officer, Checks Disbursement Division, Fiscal
Management and Budget Office (A.M. No. 2010-21-SC, Sept.30, 2014)

Chapter 1. Commodatum (Arts. 1935-1952 NCC)

Section 1. Nature of Commodatum (Arts. 1935-1940 NCC)

 Republic vs. Bagtas (6 SCRA 262 [1962])

 Pajuyo vs. CA (430 SCRA 492 [2004])
 Producers Bank of the Phils. vs. CA (397 SCRA 651 [2003])

Section 2. Obligations of the Bailee (Arts. 1941-1945 NCC)

Section 3. Obligations of the Bailor (Arts. 1946-1952 NCC)

 Quintos and Ansaldo vs. Beck (69 Phil. 108 [1939])

Chapter 2. Simple Loan or Mutuum (Arts. 1953-1961 NCC)

 Sy vs. Westmont Bank (806 SCRA 541 [2016])

 Garcia vs. Thio (518 SCRA 433 [2007])
 People vs. Puig (563 SCRA 564 [2008])
 BPI Family Bank vs. Franco (538 SCRA 184 [2007])
 Republic vs. Jose Grijaldo (15 SCRA 681 [1965])
 De la Paz vs. L & J Devt. Company, (734 SCRA 364 [2014])
 Nacar vs. Gallery Frames, et.al. (703 SCRA 439 [2013])
 Buenaventura vs. Metrobank (G.R. No. 167082, Aug.3, 2016)
 Joven de Cortes vs. Venturanza (79 SCRA 709 [1977])
 Ligutan vs. CA (376 SCRA 560 [2002])
 Delos Santos vs. Metrobank (684 SCRA 410 [2012])
 BPI vs. Land Investors & Developers Corp. (882 SCRA 286 [2018])

The Usury Law (Act No. 2655, as amended)

 Bulos, Jr. vs. Yasuma (G.R. No. 164159, July 17, 2007)
 Silos vs. PNB (G.R. No. 181045, July 2, 2014)
DEPOSIT (Articles 1962-2009 NCC)

Chapter 1. Deposit in General and Its Different Kinds (Arts. 1962-1967 NCC)

 Chan vs. Maceda (402 SCRA 352 [2003])

 Triple-V Food Services, Inc. vs. Fil. Merchants Insurance
Company, Inc. (G.R. No. 160544, Feb.21, 2005)

Chapter 2. Voluntary Deposit (Arts. 1968-1995 NCC)

Section 1. General Provisions (Arts. 1968-1971 NCC)

Section 2. Obligations of the Depositary (Arts. 1972-1991 NCC)

 Roman Catholic Bishop of Jaro vs. De la Pena (26 Phil. 144 [1913])
 CA Agro-Industrial Devt. Corp. vs. CA (219 SCRA 426 [1993])
 Javellana vs. Lim (11 Phil. 141 [1908])
 Gavieres vs. Tavera (1 Phil. 71 [1901])
 Baron vs. David (51 Phil 1 [1927])
 US vs. Igpaura (27 Phil 619 [1913])

Section 3. Obligations of the Depositor (Arts. 1992-1995 NCC)

Chapter 3. Necessary Deposit (Arts. 1996-2004 NCC)

 Durban Apartments Corp. vs. Pioneer Insurance & Surety Corp. (639 SCRA
441 [2011])
 YHT Realty vs. CA (451 SCRA 638 [2005])

Chapter 4. Sequestration or Judicial Deposit (Arts. 2005-2009 NCC)

The Warehouse Receipts Law (Act No. 2137, as amended)

GUARANTY AND SURETYSHIP (Articles 2047-2084 NCC)

Chapter 1. Nature and Extent of Guaranty (Arts. 2047-2057 NCC)

 Games and Garments Developers, Inc. vs. Allied Banking Corp. (762
SCRA 447 [2015])
 Allied Banking Corp. vs. Yujuico (760 SCRA 397 [2015])
 Bank of Commerce vs. Flores (637 SCRA 563 [2010])
 Castellvi de Higgins & Higgins vs. Sellner (41 Phil.142 [1921])
 Machetti vs. Hospicio de San Jose, et.al. (43 Phil 297 [1922])
 Piczon vs. Piczon (61 SCRA 67 [1974])
 IFC vs. Imperial Textile Mills, Inc. (475 SCRA 149 [2005])

 Severino and Vergara vs. Severino (56 Phil. 185 [1931])

 Municipality of Gasan vs. Marasigan (63 Phil.510 [1936])

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  Plaridel Surety & Insurance Co. vs. Artex Devt. Co., Inc. (120 SCRA 827
[1983])

 Aglibot vs. Santia (687 SCRA 283 [2012])

 Standard Oil Co. of New York vs. Cho Siong (52 Phil.612 [1928])
 Municipality of Lemery vs. Mendoza and Blas (48 Phil.415 [1925])
 Pacific Tobacco Corp. vs. Lorenzana (102 Phil. 234 [1957])
 Reparation Commission vs. Northern Lines, Inc. (34 SCRA 203 [1970])
 Texas Co., Inc. vs. Alonso (73 Phil. 90 [1941])
 Pastoral vs. Mutual Security Insurance Corp. (14 SCRA 1011 [1965])

 Estate of Hemady vs. Luzon Surety Co. Inc. (100 Phil. 388 [1956])

Chapter 2. Effects of Guaranty (Arts. 2058-2075 NCC)

Section 1. Effects of Guaranty Between the Guarantor and the Creditor

(Arts. 2058-2065 NCC)

 Autocorp Group vs. Intra Strata Assurance Corp. (556 SCRA 250 [2008])
 Wise & Co. vs. Tanglao (63 Phil. 372 [1936])
 Mira Hermanos, Inc. vs. Manila Tobaconists, Inc. (74 Phil. 367
[1943])

Section 2. Effects of Guaranty Between the Debtor and the Guarantor

(Arts. 2066-2072 NCC)

 Tuason, Tuason, Inc. vs. Machuca (46 Phil. 561 [1924])

 Saenz vs. Yap Chuan (16 Phil. 76 [1910])

 Gidwani vs. Domestic Insurance Co. of the Phils. (122 SCRA 732
[1983])
 General Indemnity Co., Inc. vs. Alvarez (100 Phil. 1059 [1957])

Section 3. Effects of Guaranty as Between Co-Guarantors

(Arts. 2073-2075 NCC)

Chapter 3. Extinguishment of Guaranty (Arts. 2076-2081 NCC)

 J.V. House vs. Dela Costa (68 Phil. 742 [1939])

 Citizens Surety & Insurance Co., Inc. vs. CA (162 SCRA 738 [1988])
 PNB vs. Manila Surety & Fidelity Co., Inc. (14 SCRA 776 [1965])
 E. Zobel, Inc. vs. CA (290 SCRA 1 [1998])

Chapter 4. Legal and Judicial Bonds (Arts. 2082-2084 NCC)

 PNB vs. Manila Surety & Fidelity Co., Inc. (supra.)

 Erma Industries, Inc. vs. Security Bank Corp. (G.R. No.191274, Dec.6, 2017)
 FGU Insurance Corp. vs. Spouses Roxas, et.al. (836 SCRA 16 [2017])
 People’s Trans-East Asia Insurance Corp. vs. Doctors of New Millenium
Holdings, Inc. (732 SCRA 631 [2014])
 Trade & Investment Devt. Corp. of the Phils. vs. Asia Paces Corp. (716 SCRA

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 67 [2014])
 Phil. Charter Insurance Corp. vs. Petroleum Distributors & Service Corp. (670
SCRA 166 [2012])

REAL ESTATE MORTGAGE & ANTICHRESIS (Articles 2085-2141 NCC)

Chapter 1. [General] Provisions Common to Pledge and Applicable to Real Estate

Mortgage (Arts. 2085-2092 NCC)

 Duran vs. IAC (138 SCRA 491 [1985])

 Torbela vs. Rosario (661 SCRA 633 [2011])
 Arenas vs. Raymundo (19 Phil. 46 [1911])
 Tabuada vs. Tabuada (880 SCRA 67 [2018])
 Alcantara vs. Alinea (8 Phil. 111 [1907])
 Uy Tong vs. CA (161 SCRA 383 [1988])
 DBP vs. CA (284 SCRA 14 [1998])
 Bustamante vs. Rosel (319 SCRA 413 [1999])
 Yau Chu vs. CA (177 SCRA 793 [1989])

Chapter 2. Pledge (Arts. 2093-2123 NCC)

 Sicam vs. Jorge (529 SCRA 443 [2007])

 Yuliongsui vs. PNB (22 SCRA 585 [1968])
 Estate of G. Litton vs. Mendoza (163 SCRA 246 [1988])
 Cruz and Serrano vs. Chua A.H. Lee (54 Phil 10 [1929])

Chapter 3. [Real Estate] Mortgage (Arts. 2124-2131 NCC)

 Hernandez vs. Ocampo (800 SCRA 227 [2016])

 Limso vs. PNB (782 SCRA 137 [2016])
 Soriano vs. Bautista (6 SCRA 946 [1962])
 Santiago vs. Dionisio (92 Phil. 495 [1953])
 Rural Bank of Caloocan, Inc. vs. CA (104 SCRA 151 [1981])
 Fiestan vs. Court of Appeals (185 SCRA 75 [1990])
 Ermitaño vs. Paglas (689 SCRA 158 [2013])
 Malayan Bank vs. Lagrama (357 SCRA 429 [2001])
 Teves vs. Integrated Credit & Corporate Services, Co. (860 SCRA 493
[2018])

Chapter 4. Antichresis (Arts. 2132-2139 NCC)

 Cotoner-Zacarias vs. Revilla (740 SCRA 51 [2014])

 Dizon vs. Gaborro (83 SCRA 688 [1978])

Chapter 5. Chattel Mortgage (Arts. 2140-2141 NCC)

 Belgian Catholic Missionaries vs. Magallanes Press (49 Phil. 647 [1926])
 Marquez vs. Elisan Credit Corporation (755 SCRA 31 [2015])

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PERSONAL PROPERTY SECURITY ACT (R.A. No. 11057)
(approved August 17, 2018)

A. Definitions and Scope

B. Asset-Specific Rules

1. Future Property

2. Rights to Proceeds and Commingled Funds

3. Tangible Assets Commingled in a Mass

4. Accounts Receivables

C. Perfection of Security Interests

D. Registration

E. Priority of Security Interests

F. Tangible Assets; Intangible Assets

G. Enforcement of Security Interests

H. Prior Interests and the Transitional Period

CONCURRENCE AND PREFERENCE OF CREDITS (Articles 2236-2251

NCC)

Chapter 1. General Provisions (Arts. 2236-2240 NCC)

Chapter 2. Classification of Credits (Arts. 2241-2245 NCC)

 Metrobank vs. S.F. Naguiat Enterprises, Inc. (753 SCRA 474 [2015])
 Jan-Dec Construction Corp. vs. Court of Appeals (481 SCRA 556 [2006])
 Atlantic Erectors, Inc. vs. Herbal Cove Realty Corp. (399 SCRA 409 [2003])
 De Barretto vs. Villanueva (1 SCRA 288 [1961])
 State Investment House, Inc. vs. CA (277 SCRA 209 [1997])
 Central Bank of the Phils. vs. Morfe (63 SCRA 114 [1975])
 Lipana vs. Devt Bank of Rizal (154 SCRA 257 [1987])
 DBP vs. Court of Appeals (363 SCRA 307 [2001]

Chapter 3. Order of Preference of Credits (Arts. 2246-2251 NCC)

 De Barretto vs. Villanueva (supra.)

 Phil. Savings Bank vs. Lantin (124 SCRA 476 [1983])

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FINANCIAL REHABILITATION AND INSOLVENCY ACT
(R.A. NO. 10142; FR Rules [A.M. No.12-12-11-SC]; and FLSP Rules
[A.M. No. 15-04-06-SC])

A. Basic concepts

1. Rehabilitation
2. Insolvency
3. Liquidation
4. Suspension of Payments

 Express Investments III vs. Bayan Telecommunications (687 SCRA 50 [2013])

 Steel Corp. of the Phils. vs. Mapfre Insular Insurance (707 SCRA 602 [2013])
 MWSS vs. Daway (432 SCRA 559 [2004])
 New Frontier Sugar Corp. vs. RTC Branch39, Iloilo City (513 SCRA 601 [2007])
 North Bulacan Corp. vs. PBCommunications (626 SCRA 260 [2010])

B. Modes of Rehabilitation

1. Court- supervised rehabilitation

a. Voluntary vs. involuntary

b. Commencement order (including stay order)
c. Rehabilitation receiver and management committee
d. Determination of claims
e. Rehabilitation plan

i. Concept of feasibility
ii. Material financial commitments
iii. Liquidation analysis

f. Creditor approval and confirmation

g. Failure of rehabilitation

 Rubberworld (Phils.), Inc. vs. NLRC (305 SCRA 721 [1999])

 Metropolitan Bank & Trust Co. vs. ASB Holdings, Inc. (517 SCRA 1 [2007])
 Wonder Book Corp. vs. Philippine Bank of Communications (676 SCRA 489 [2012])
 Philippine Islands Corp. for Tourism Dev. vs. Victorias Milling (554 SCRA 562 [2008])
 Phil. Veterans Bank Employees Union vs. Vega (360 SCRA 33 [2001])
 BIR vs. Lepanto Ceramics, Inc. (G.R. No. 224764, April 24, 2017)
 Alemar’s Sibal vs. Elbinias (186 SCRA 94 [1990])
 Ruby Industrial Corp. vs. CA (284 SCRA 445 [1998])
 Negros Navigation Co., Inc. vs. CA (573 SCRA 434 [2008])
 Bank of P.I. vs. CA (229 SCRA 223 [1994])
 Metropolitan Waterworks vs. Daway (432 SCRA 559 [2004])
 Tyson’s Super Concrete vs. CA (461 SCRA 469 [2005])
 Sobrejuanite vs. ASB Dev. Corp. (471 SCRA 763 [2005])
 Molina vs. Pacific Plans, Inc. (655 SCRA 356 [2011])
 Traders Royal Bank vs. CA (177 SCRA 788 [1989])
 Modern Paper Products vs. CA (286 SCRA 749 [1998])

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  Union Bank vs. CA (290 SCRA 198 [1998])
 Siochi Fishery Enterprises, Inc. vs. Bank of P.I. (659 SCRA 817 [2011])
 Jacinto vs. First Women’s Credit (410 SCRA 140 [2003])
 Phil. Asset Growth Two, Inc. vs. Fastech Synergy Phils. (794 SCRA 625)
 Bank of P.I. vs. Sarabia Manor Hotel (702 SCRA 432 [2013])
 Veterans Phil. Scout Security Agency vs. First Dominion Prime Holdings (679 SCRA 168 [2012])
 Panlilio vs. RTC Br.51, City of Manila (641 SCRA 438 [2011])
 New Frontier Sugar Corp. vs. RTC Branch 39, Iloilo City (513 SCRA 601 [2007])

2. Pre-negotiated rehabilitation

a. How initiated
b. Period and effect of approval

3. Out-of-Court or Informal Restructuring Agreement or Rehabilitation Plan

a. Minimum requirements
b. Standstill period
c. Cram down effect

C. Liquidation

1. Voluntary liquidation vs. involuntary liquidation vs. conversion

2. Procedure

a. Liquidation order; effects

3. Determination of claims

4. Cases

 Metropolitan Bank vs. S.F. Naguiat Enterprises, Inc. (753 SCRA 474 [2015])
 State Investment House vs. Citibank (203 SCRA 9 [1991])

D. Suspension of Payments; Suspension of Payment Order

E. Remedies

1. Motion for Reconsideration

2. Petition for Certiorari

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