G.R. No.

L-49101 October 24, 1983

RAOUL S.V. BONNEVIE and HONESTO V. BONNEVIE, petitioners,

vs.
THE HONORABLE COURT OF APPEALS and THE PHILIPPINE BANK OF COMMERCE,
respondents.
Facts:

Spouses Lozano mortgaged their property to secure the payment of a loan amounting
to 75,000 with private respondent Philippine Bank of Communication (PBCom). The deed of
mortgage was executed on 12-6-66, but the loan proceeeds were received only on 12-12-66.
Two days after the execution of the deed of mortgage, the spouses sold the property to the
petitioner Bonnevie for and in consideration of 100,000—25,000 of which payable to the
spouses and 75,000 as payment to PBCom. Afterwhich, Bonnevie defaulted payments to
PBCom prompting the latter to auction the property after Bonnevie failed to settle despite
subsequent demands, in order to recover the amount loaned. The latter now assails the
validity of the mortgage between Lozano and PBCom arguing that on the day the deed was
executed there was yet no principal obligation to secure as the loan of P75,000.00 was not
received by the Lozano spouses, so that in the absence of a principal obligation, there is
want of consideration in the accessory contract, which consequently impairs its validity and
fatally affects its very existence.

Issue:

Was there a perfected contract of loan?

Decision:

WHEREFORE, the appeal being devoid of merit, the decision of the Court of Appeals is
hereby AFFIRMED. Costs against petitioners.

Ratio:

Yes. From the recitals of the mortgage deed itself, it is clearly seen that the mortgage
deed was executed for and on condition of the loan granted to the Lozano spouses. The fact
that the latter did not collect from the respondent Bank the consideration of the mortgage
on the date it was executed is immaterial. A contract of loan being a consensual contract,
the herein contract of loan was perfected at the same time the contract of mortgage was
executed. The promissory note executed on December 12, 1966 is only an evidence of
indebtedness and does not indicate lack of consideration of the mortgage at the time of its
execution.