Caltex Phils., v. CA, G.R. No.

97753, 10 August 1992

FACTS
On various dates, Security Bank and Trust Company (SBTC), through its Sucat Branch
issued 280 certificates of time deposit (CTD) in favor of one Angel dela Cruz who later lost
them.
Date of Maturity FEB. 23, 1984 FEB 22, 1982, 19____
This is to Certify that B E A R E R has deposited in this Bank the sum of PESOS: FOUR
THOUSAND ONLY, SECURITY BANK SUCAT OFFICE P4,000& 00 CTS Pesos, Philippine
Currency, repayable to said depositor 731 days. after date, upon presentation and
surrender of this certificate, with interest at the rate of 16% per cent per annum.
(Sgd. Illegible)
Caltex (Phils.) Inc. went to the SBTCSucat branch and presented for verification the CTDs
declared lost by Angel dela Cruz alleging that the same were delivered to herein plaintiff
“as security for purchases made with Caltex Philippines, Inc.” by said depositor. SBTC
rejected Caltex’s demand and claim. Caltex sued SBTC but case was dismissed
rationalizing that CTD’s are non-negotiable instruments.
ISSUE:
Whether or not Certificate of Time Deposit (CTD) is a negotiable instrument.
RULING
YES. The CTDs in question undoubtedly meet the requirements of the law for negotiability
under Section 1 of the Negotiable Instruments Law. The accepted rule is that the
negotiability or non-negotiability of an instrument is determined from the writing, that is,
from the face of the instrument itself. In the construction of a bill or note, the intention of
the parties is to control, if it can be legally ascertained. Here, if it was really the intention
of respondent bank to pay the amount to Angel de la Cruz only, it could have with facility
so expressed that fact in clear and categorical terms in the documents, instead of having
the word “BEARER” stamped on the space provided for the name of the depositor in each
CTD.
While the writing may be read in the light of surrounding circumstances in order to more
perfectly understand the intent and meaning of the parties, yet as they have constituted
the writing to be the only outward and visible expression of their meaning, no other words
are to be added to it or substituted in its stead.