Manila Banking Corp. v Anastacio Teodoro, Jr.

and Grace Teodoro

1. April 1966, Spouses Teodoro together with Teodoro Sr executed a PN for the
sum of P10,420 in favour of Manila Banking Corp (MBC);

- Payable within 120 days (until Aug), with 12% interest per annum;
- They failed to pay and left balance of 15k as of September 1969; (w/c
stood at P15,137.11)

2. May and June 1966, executed two PNs;

- 8k and 1k respectively payable within 120 days and 12% per annum;
- They made partial payment but still left P8,934 balance as of September
1969;

3. It appears than in 1964, Teodoro Jr executed a Deed of Assignment of

Receivables in favour of MBC from Emergency Employment Administration;

- Amounted to P44,635;
- The deed of assignment provided it was for consideration of certain credits,
loans, overdrafts and other credit accommodations extended to the spouses
and Teodoro Sr as security for the payment of said sum and interest thereon;
- and that they release and quitclaim all its rights, title and interest in the
receivables;
- Further, title to the AR is to remain in the assignee.