NOTES AND CASES ON BANKING LAW AND NEGOTIABLE INSTRUMENTS LAW Volume 1 (Essentials of Negotiable Instruments Law, Warehouse Receipts Law, Letters of Credit and Trust Receipts Law) By TIMOTEO B. AQUINO Professor of Law Philippine Judicial Academy University of Perpetual Help College of Law Angeles University Fourtdation College of Law San Beda College of Law Arellano Law Foundation Former Prefect of Student Affairs, San Beda College of Law Author: Torts and Damages Philippine Corporate Law Compendium Bssentials of Insurance Law Casebook on Corporate Law Co-Author, Reviewer on Commercial Law Notes and Cases on the Law on Transportation ‘and other Publie Utilities Fundamentals of Negotiable Instruments Law Fundamentals of Obligations and Contract Revised Rules on Summary Procedure: Revisited Handbook on Summary and Small Claims Procedure and Bouncing Checks Law Third Edition ' 2009 Pubined& Oistnbuied by Book Store '856 Nicanor Reyes, Sr. St. Tel Nos. 736.05-67 "735-1064 1977 CAM. Recto Avenue Tel, Nos. 735-55-27 738.55.94 Mania, Philippines wor rexpublishing.com.phPhilippine Copyright, 2009 by Task Couino TEEN Gre arias ese For Bea, our children Leona Isabelle, Lean Carlo and Lauren Margaret No portion ofthis book may be copied or repro- 9 oa ees duced in books, pamphlets, outlines or notes, whether printed, mimeographed, typewritten, copied in dif- forent electronic devices or in any other form, for distribution or sale, without the written permission of the author except brief passages in books, articles, reviews, legal papers, and judicial or other official proceedings with proper citation. Any copy of this book without the corresponding number and the signature of the author on this page either proceeds from an illegitimate souree or is in possession of one who has no authority to dispose of the same, ALL RIGHTS RESERVED BY THE AUTHOR No 0342 (Mh 05-cm-00029 9 Wear i2tssagso Printed by ex printing company, inc. peng & nie ikea {8 Fern Qn Cy Tans Meth raatcer SRE REL VE ALAR EUR TA OS PREFACE ‘This book is the third edition of the author’s work on Nego- tiable Instruments Law and applicable laws on commercial docu- ment. The two previous incarnations of this book included a Part TIT on banking laws. The quantity of the materials on banking laws necessitated the separation of Part III into a separate valume, Vol- ume II. The two volumes are still treated as part of one integrated work, An introductory course on banking laws will be deficient ifthe study of the laws dealing with negotiable instrument laws will not be incorporated. After all, the issuance and negotiation of negotiable instruments are part of the functions of banks. ‘The book responds to the lessons learned by the author from his learned professors and in teaching the subjects included in this work. Instead of resorting to section by section annotation of the statutes, the author resorted to presentation of the topics in both transactional and conceptual lines. It is, ta the anthor's mind, the best approach to a book for use in an introductory course on the laws ‘on negotiable instruments and other commercial documents. Select- ed cases are reproduced in order to provide students with concrete examples of statutory and jurisprudential rules in operation, The present edition is leaner because the number of sample edited cas was reduced to make them more manageable for students. Some of the cases are now presented in “problem-answer” and/or digest form together with sample Bar examination problems. Nevertheless, the author believes that students should be guided by, but should not be satisfied with digest of Supreme Court cases or cases blem form provided in this work. The cases should be read in the original. THE AUTHOR ‘Teresa, Rizal