UNIVERSITY OF PERPETUAL HELP LAGUNA

Sto. Niño, Biñan, Laguna

COLLEGE OF LAW

COURSE SYLLABUS

Date of Applicability:

a. First Semester
b. School Year 2020-2021

Course Title: Credit Transactions Pre-requisite: Section Code: Schedule: Saturday 4:00-7:00 pm

Course Description: Credit Transactions (3units lecture – recitation)

The course is a study on the concept and application of Credit Transactions.

Course Credit:
a. 3 units
b. 3 hours a week

Prepared: Approved: Noted:

Atty. Glenna Mari M. Dela Cruz - Huliganga Atty. Wilfredo L. Bejasa Dr. Ferdinand C. Somido
Professor Dean School Director

General Objectives:

To enable the students to understand the concept and application of Credit Transactions in Philippine law.

Specific Objectives: At the end of the course, the students should be able to:

-1-
Cognitive:
1. Understand concepts and principles underlying Credit Transactions.
2. Correlate principles of Credit Transactions in decided cases.
3. Comprehensively analyze selected decisions of the Supreme Court.

Affective:

1. Have an immense interest and sustained enthusiasm in the study of Credit Transactions.
2. Develop a dynamic understanding of Credit Transactions.
3. Develop an awareness of Credit Transactions in the all aspects in the study of the law.

Psychomotor:

1. To share their knowledge of Credit Transactions.

2. To apply their knowledge of Credit Transactions in their study of the law.

Prepared: Approved: Noted:

Atty. Glenna Mari M. Dela Cruz - Huliganga Atty. Wilfredo L. Bejasa Dr. Ferdinand C. Somido
Professor Dean School Director

Wee Time Learning Objectives Subject Matter Teaching Teaching Eval. Min.
k Allot and Values Integration Methodology Aids Tools Comp.
ment
Indicato
r

1-2 6 To know and understand  Introduction Socratic/ Textbooks: Recitation 75%

hours the laws governing Credit 1. Meaning and scope of credit Practical Azucena, Major
Transactions and its transactions Exercises Book II exams
application to decided 2. Meaning and kinds of security
cases Acme Shoe Rubber&Plastic Corp.

-2-
 vs. Court of Appeals, 260 SCRA 714
(1996);
3. Meaning, creation and elements of
bailment
4. Distinguished from Custody
5. Parties in bailment
6. Subject matter of bailment
7. Kinds of contractual bailment
8. Kinds of bailment for hire

I. LOAN (Arts. 1933-1961)

 Article 1933
People vs. Concepcion, 44 Phil. 126
(1922);
 Article 1934

Chapter 1 – Commodatum
Section 1. – Nature of Commodatum
 Article 1935
Pajuyo vs. Court of Appeals, 430 SCRA
492 (2004);
 Article 1936-1937
Producers Bank of the Philippines vs.
Court of Appeals, 397 SCRA 651
(2003);
 Article 1938
 Article 1939
 Article 1940

Section 2. – Obligations of the Bailee

 Article 1941
 Article 1942
 Article 1943
 Article 1944
 Article 1945

Section 3. – Obligations of the Bailor

-3-
 Article 1946
 Article 1947
Quintos and Ansaldo vs. Beck, 69 Phil.
108 (1939)
 Article 1948
 Article 1948
 Article 1950
 Article 1951
 Article 1952

Chapter 2. – Simple Loan or Mutuum

 Article 1953
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. Grijaldo, 15 SCRA 681
(1965);
 Article 1954
 Article 1955
 Article 1956
De la Paz vs. L&J Development
Company, 734 SCRA 364 (2014);
Nacar v. Gallery Frames and/or Felipe
Bordey, Jr., 703 SCRA 439 (2013);
Ligutan vs. Court of Appeals, 376
SCRA 560 (2002)
Delos Santos vs. Metropolitan Bank
and Trust Company, 684 SCRA 410
(2012)
 Article 1957
 Article 1958
 Article 1959
 Article 1960
 Article 1961
Silos vs. Philippine National Bank, 728
SCRA 617 (2014)

-4-
3-4 6 To know and understand II. USURY LAW (Act No. 2655, as Socratic/ Recitation 75%
hours the laws governing Credit amended) Practical Major
Transactions and its  Sections 1-12 Exercises exams
application to decided Advocates for Truth in Lending, Inc.
cases vs. Bangko Sentral Monetary Board,
688 SCRA 530 (2013);

5-6 6 To know and understand III. DEPOSIT (Arts. 1962-2009) Socratic/ Recitation 75%
hours the laws governing Credit Practical Major
Transactions and its Chapter 1. – Deposit in General and Its Exercises exams
application to decided Different Kinds
cases  Article 1962
Chan vs. Maceda, 402 SCRA 352
(2003);
 Article 1963
 Article 1964
 Article 1965
Triple-V Food Services, Inc. vs. Filipino
Merchants Insurance Company, Inc.,
G.R. No. 160544, 21 February 2005;
 Article 1966
 Article 1967

Chapter 2. – Voluntary Deposit

Section 1. – General Provisions
 Article 1968
 Article 1969
 Article 1970
 Article 1971

Section 2. – Obligations of the Depositary

 Article 1972
Roman Catholic Bishop of Jaro v. De
La Peña, 26 Phil. 144 (1913)
 Article 1973
 Article 1974
 Article 1975

-5-
 CA Agro-Industrial Development
Corp., vs. Court of Appeals, 219 SCRA
426 (1993);
 Article 1976
 Article 1977
 Article 1978
 Article 1979
 Article 1980
 Article 1981-1982
 Article 1983
 Article 1984
 Article 1985
 Article 1986
 Article 1987
 Article 1988
 Article 1989
 Article 1990
 Article 1991

Section 3. – Obligations of the Depositor

 Article 1992
 Article 1993
 Article 1994
 Article 1995

Chapter 3. – Necessary Deposit

 Articles 1996-1997
 Articles 1998-1999
Durban Apartments Corporation vs.
Pioneer Insurance and Surety
Corporation, 639 SCRA 441 (2011);
 Articles 2000-2002
 Article 2003
YHT Realty vs. Court of Appeals, 451
SCRA 638 (2005);
 Article 2004

-6-
 Chapter 4. – Sequestration or Judicial
Deposit
 Articles 2005-2008
Province of Bataan vs. Villafuerte Jr.,
367 SCRA 620 (2001);
 Article 2009

7 3 To know and understand IV. THE WAREHOUSE RECEIPTS Socratic/ Recitation 75%
hours the laws governing Credit LAW (Act. No. 2137, as amended) Practical Major
Transactions and its  Sections 1-61 Exercises exams
application to decided  Scope
cases  Applicability of the Civil Code
 Purposes

8-9 6 To know and understand V. GUARANTY AND SURETYSHIP Socratic/ Recitation 75%
hours the laws governing Credit (Arts. 2047-2084) Practical Major
Transactions and its Exercises exams
application to decided Chapter 1. – Nature and Extent of Guaranty
cases  Article 2047
Machetti vs. Hospicio de San Jose and
Fidelity & Surety Co., 43 Phil. 297
(1922)
 Article 2048
 Article 2049
 Article 2050
 Article 2051
 Article 2052
 Article 2053
 Article 2054
 Article 2055
Aglibot vs. Santia, 687 SCRA 283
(2012);
 Article 2056-2057
Estate of Hemady v. Luzon Surety Co.,
Inc., 100 Phil. 388 (1956)

Chapter 2. – Effects of Guaranty

-7-
Section 1. – Effects of Guaranty Between
the Guarantor and the Creditor
 Article 2058
 Article 2059
 Articles 2060-2061
 Article 2062
 Article 2063
 Article 2064
 Article 2065

Section 2. Effects of Guaranty Between the

Debtor and the Guarantor
 Article 2066
 Article 2067
Gidwani v. Domestic Insurance Co. of
the Philippines, 122 SCRA 732 (1983)
 Article 2068
 Article 2069
 Article 2070
 Article 2071
Kuenzle v. Streiff v. Tan Sunco, 16 Phil.
670 (1910)
Banzon v. Cruz, 15 SCRA 475 (1972)
 Article 2072

Section 3. – Effects of Guaranty as Between

Co-guarantors
 Article 2073
 Article 2074
 Article 2075

Chapter 3. – Extinguishment of Guaranty

 Article 2076
Citizens Surety and Insurance Co., v.
Court of Appeals, 162 SCRA 738
 Article 2077
 Article 2078
 Article 2079

-8-
  Article 2080
E. Zobel, Inc. v. Court of Appeals, 290
SCRA 1 (1998)
 Article 2081

Chapter 4. Legal and Judicial Bonds

 Article 2082
 Article 2083
 Article 2084

10 3 To know and understand VI. PLEDGE (Arts. 2085-2123) Socratic/ Recitation 75%
hours the laws governing Credit Practical Major
Transactions and its Chapter 1. – Provisions Common to Pledge Exercises exams
application to decided and Mortgage
cases  Articles 2085-2087
Calibo v. Court of Appeals, 350 SCRA
427 (2001)
 Article 2088
Uy Tong v. Court of Appeals, 161 SCRA
383 (1988)
Bustamante v. Rosel, 319 SCRA 413
(1999)
 Articles 2089-2090
 Article 2091
 Article 2092

Chapter 2. – Provisions Applicable Only to

Pledge
 Article 2093
 Article 2094-2095
 Article 2096
 Article 2097
Estate of G. Litton v. Mendoza, 163
SCRA 246 (1988)
 Article 2098
 Article 2099
 Article 2100

-9-
  Article 2102
 Article 2103
 Article 2104
 Article 2105
 Article 2106
 Article 2107
 Article 2108
 Article 2109
 Article 2110
 Article 2111
 Article 2112
 Article 2113
 Article 2114
 Article 2115
 Article 2116
 Article 2117
 Article 2118
 Article 2119
 Article 2120
 Articles 2121-2122
 Article 2123

11 3 To know and understand VII. REAL MORTAGGE (Arts. 2124- Socratic/ Recitation 75%
hours the laws governing Credit 2131) Practical Major
Transactions and its Rule 68, Rules of Court Exercises exams
application to decided Act. No. 3135, as amended by Act No. 4118
cases (Extra-Judicial Foreclosure of Mortgage)

Chapter 3. – Mortgage
 Article 2124
 Article 2125
 Article 2126
 Article 2127
 Article 2128
 Article 2129
 Article 2130
 Article 2131

- 10 -
 Malayan Bank v. Lagrama, 357 SCRA
429 (2001);
Lanuza v. De Leon, 20 SCRA 369
(1967)
Bundalian v. Court of Appeals, 129
SCRA 645 (1984);
Tioseco v. Court of Appeals, 143
SCRA705 (1986)

12 3 To know and understand VIII. ANTICHRESIS (Arts. 2132-2139) Socratic/ Recitation 75%
hours the laws governing Credit Practical Major
Transactions and its Chapter 4. – Antichresis Exercises exams
application to decided  Article 2132
cases  Article 2133
 Article 2134
 Article 2135
 Article 2136
 Article 2137
 Article 2138

Samonte v. Court of Appeals, 141 SCRA

189 (1986);
Ramirez v. Court of Appeals, 144 SCRA
292 (1986)

11 3 To know and understand IX. CHATTEL MORTGAGE (Arts. Socratic/ Recitation 75%
hours the laws governing Credit 2140-2141) Practical Major
Transactions and its Exercises exams
application to decided Chapter 5. – Chattel Mortgage
cases  Article 2140
 Article 2141

Act No. 1508, Chattel Mortgage Law

Art. 319, Revised Penal Code

Makati Leasing and Finance Corp., v.

Wearever Textile, 122 SCRA 296 (1983);

- 11 -
 Northern Motors, Inc. v. Coquia, 68 SCRA
372 (1975)

12 3 To know and understand X. CONCURRENCE AND Socratic/ Recitation 75%

hours the laws governing Credit PREFERENCE OF CREDITS (Arts. Practical Major
Transactions and its 2236-2251) Exercises exams
application to decided  Features of Title XIX of the Civil Code
cases  Scope of Title XIX
 Meaning of concurrence of credits
 Meaning of preference of credits
 Nature and effect of preference
 Preference of credit vs. lien
 Credits must be due

Chapter 1. – General Provisions

 Article 2236
 Article 2237
 Article 2238
 Article 2239
 Article 2240

Chapter 2. – Classification of Credits

 Article 2241
 Article 2242
 Article 2243
 Article 2244
 Article 2245

Chapter 3. – Order of Preference of Credits

 Articles 2246-2250
 Article 2251

Roman v. Asia Banking Corp., 46 Phil. 705

(1922)
Central Bank v. Morfe, 63 SCRA 114 (1975)

11 3 To know and understand XI. FINANCIAL REHABILITATION Socratic/ Recitation 75%

- 12 -
 hours the laws governing Credit AND INSOLVENCY ACT OF 2010 Practical Major
Transactions and its (Republic Act No. 10142) Exercises exams
application to decided
cases

References: Hector S. De Leon, Hector M. De Leon, Jr. Comments and Cases on Credit Transactions, 2016 Edition
Aquino, Essentials of Credit Transactions and Banking Laws, 2015 Edition
Selected Cases

Grading System: 40% Class standing + 60% Major Exam = MG MG + FG

40% Class standing + 60% Major Exam = FG 2 = Final Grade

Prepared: Approved: Noted:

Atty. Glenna Mari M. Dela Cruz - Huliganga Atty. Wilfredo L. Bejasa Dr. Ferdinand C. Somido
Professor Dean School Director

- 13 -