Caltex Phil.

v CA
Facts:
280 certificates of Time Deposit from Security Bank were given to Angel dela Cruz, which were delivered
by Dela cruz to Caltex for his fuel purchases. In March 1982, Dela Cruz declared the CTDs as lost, and the
Bank issued him new ones. Dela Cruz thereafter obtained a loan from the Bank in the amount of
P875,000, and as security, he assigned the CTDs under the full control of the Bank, and the amounts to
be gathered therefrom shall be applied to whatever becomes due on the loan. Caltex sought to claim
the payment of the amounts covered by the CTDs, while Security Bank requested for documents
evidencing the debt of Dela Cruz with Caltex, but they could not produce any. Thus, Caltex filed a case to
recover the amount of the CTDs. But the RTC and CA dismissed the same, saying the CTDs were non-
negotiable and thus could not have been validly transferred to Caltex.

Held:
The SC held that the CTDs were negotiable as they stated that they were payable to bearer.