2. Naguiat v. CA, 412 SCRA 591, G.R. No. 118375, October 03, 2003.-FORTES CelestinaNaguiat v.

CA, Aurora Queano (2003) Doctrine:loan contract is a real contract, not consensual, and, as such, is perfected only upon the delivery of the object of the contract Facts: Aurora applied for a loan with Celestina in the amount of P200K Celestina issued checks to Aurora but the former instructed her agent, Ruby Ruebenfeldt to hold the checks pending delivery of additional collateral from Aurora Aurora to secure the loan executed a Deed of Real Estate Mortgage in favor of Naguiat o Aurora issued postdated check payable to Celestina However, the check for Aurora was never released by Ruby or Celestina When Celestina presented the check issued by Aurora it was dishonored due to insufficiency of fund Aurora filed with the court a Complaint for Cancellation of of Real Estate Mortgage (REM) o RTC cancelled the REM WON: Aurora received the loan proceeds which were supposed to be covered by checks issued by Celestina NO! (Of course! Anggulangnaman!) HELD: The Court found that checks issued or indorsed to Aurora Queao were never encashed or deposited to her account CelestinaNaguiatsmere issuance of checks not result in perfection of contract of loan Only after the checks have produced the effect of payment that the contract of loan may be deemed perfected. Art. 1934 of the Civil Code provides: o An accepted promise to deliver something by way of commodatum or simple loan is binding upon the parties, but the commodatum or simple loan itself shall not be perfected until the delivery of the object of the contract The object of the contract in this case is the loan proceeds whichAurora Queao would enjoy only upon the encashment of the checks signed or indorsed byCelestinaNaguiat. If indeed the checks were encashed or deposited, CelestinaNaguiat would have certainly presented the corresponding documentary evidence, such as the returned checks and the pertinent bank records. o Since Naguiat presented no such proof, it follows that the checks were not encashed or credited to Queaos account. Ample evidence that Ruby Ruebenfeldt is authorized agent of Naguiat Ruebenfeldt told to hold checks for Queano pending delivery of additional collateral