CREDIT TRANSACTIONS

I. Loan
a. Commodatum
b. Mutuum

Cases:
• Producers Bank of the Phils v. Court of Appeals, G.r.no.115324, Feb. 09, 2003
• Catholic Vicar Apostolic Church v. Court of Appeals, G.r. no.L-80294-95, September
21, 1988
• ColitoPajuyo v. Court of Appeals, G.r.no. 146364, June 03, 2004
• Herrera vsPetrophil Corporation G.r. No. L-48349, December 29, 1986
• Advocates for Truth in Lending Inc., v. BangkoSentral Monetary Board, G.r.no.
192986, Jan 15, 2013
• Eastern Shipping Lines v. Court of Appeals, G.r.no. 97412, July 12, 1994
• BSP circular 799 series of 2013
• Nacar v. Gallery Frames, G.r. no. 189871, August 13. 2013
• Federal Builders Inc. v. Foundation Specialist, Inc., G.r. 194507, September 08,
2014
• Pantaleon v. American Express International, Inc., G.r. no.174269, August 25,
2010

II. Deposit
a. Nature and purpose (Articles 1962, 1963, 1966)
b. Obligations of depositary
c. Fortuitous event (Art.1979)
d. Nature of Bank deposits (Art.1980)
e. Obligation to Return
f. Right of retention
g. Extinguishment
h. Necessary deposit
i. Liability of Hotel-Keepers
Cases:
• BPI v. Reyes, G.r.no. 116792, March 29, 1996
• Citibank N.A. v. Sabeniano, G.r.no. 156132, February 12, 2007
• Sia v. Court of Appeals, G.r.no. 102970, May 13, 1993

III. Guaranty and Suretyship

a. Nature (Arts. 2047-2048)
b. Continuing Guaranty (2053)
c. Qualifications of Guarantor (2056)
d. Benefit of Excussion; (2058-20160)
e. Benefit of Division (2065)
f. Rights of Guarantor (2066-2070)
g. When guarantor may proceed even before payment (2071)
h. Extinguishment of Guaranty (2076, 2077-2080)
Cases:
• The Manila Insurance Co. v. Amurao, G.r. 179628, January 16, 2013
• Jacinto Diño& Norberto Uy v. Court of Appeals, G.r. 89775, Nov. 26, 1992
• Baylon v. CA, G.r. no. 109941, August 17, 1999
 • Special steel products v. LutgardoVillareal& Frederick So, G.r. 143304, [2004]
• Spouses Toh v. Solidbank, G.r. 154183, August 07, 2003

IV. Common Provisions (Pledge, Mortgage, Anthicresis)

a. Requisites (2085)
b. Essence of Pledge or mortgage (2087)
c. Pactumcommissorium (2088)
Cases:
• Ereña v. Kauffman, G.r.no.165853, June 22, 2006 (requirement of absolute
ownership)
• Ramos v. Obispo, G.r.no. 193804, February 27, 2013 (accommodation
mortgage)
• Uy Tong v. Court of Appeals, G.r.no. 77465, May 21, 1988
• Francisco Realty v. Court of Appeals, G.r. 125055, Oct. 30, 1998
• PhilNico Industrial Corp., v. Privatization and Management Office, G.r. 199420/
G.r. 199432, August 27, 2014

V. Pledge
a. Requisites
b. Rights of Pledgee
c. Obligations of the Pledgee
d. Subject matter of pledge
(Articles 2095-2096)
i. Caltex Philippines vs. Court of Appeals, G.r.no. 97753, August 10, 1992
Extinguishment of Pledge
ii. Manila Surety vs. Velayo, G.r. no. L-21069, October 26, 1967

VI. Real Estate Mortgage

• Dionisio Mojica vs Court of Appeals, G.r. No. 94247, September 11, 1991
• Star Two Inc., vs Paper City Corp, G.r. no. 169211, March 06, 2013
• Briones-Vasquez vs. Court of Appeals, G.r. no. 144882, February 4, 2005
Object
• Prudential Bank vs. Panis, G.r. No. L-50008, August 31, 1987
Purpose of registration
• Mobil Oil vs. Diocares, G.r. no. L-26371, September 30, 1969
Effect of Mortgage
• PNB vs. RBL Enterprises, G.r. No. 149569, May 28, 2004
Extent of mortgage and exception
• PNB vs. Spouses Maranon, G.r. no. 189316, July 1, 2013

FORECLOSURE (see: Act 3135; A.M. No. 99-10-05-0 January 15, 2000 and Rule 68
Rules of Court)
• Bohanan vs Court of Appeals, G.r. No. 111654, April 18, 1996
• Caubang vs Crisologo, G.r. No. 174581, February 4, 2015
• Baluyut vs Eulogio and Salud Poblete, G.r. no. 144435, February 6, 2007
Deficiency claim
• Prudential Bank vs Martinez, G.r. No. L-51768, September 14, 1990
• Bpi vs. Avenido, G.r. no. 175816, December 7, 2011
 Redemption
• Spouses Yap vs. Spouses Dy, G.r. No. 17199 and 171868, July 27, 2011
Possession
• Spouses Gatuslao vs. Yanson, G.r. no. 191540, January 21, 2015
• Yulienco vs Court of Appeals, G.r. No. 141365, November 27, 2002
• Green Asia Construction vs. PCI Leasing, G.r. No. 163735, November 24,
2006

VII. CHATTEL MORTGAGE

Concept- Article 2140

Cases:
• Makati Leasing vs. Wearever Textile, G.r. No. L-58469, May 16, 1983
• Associated Insurance vs Iya, G.r. No. L-10837-38, May 30, 1958
• Filinvest Credit vs Court of Appeals, G.r. No. 82508, September 29, 1989
• Industrial Finance vs Ramirez, G.r. No. L-43821, May 26, 1977
• PCI Leasing & Finance vs. Trojan Metal Industries, G.r. No. 176381

VIII. Financial Rehabilitation and Insolvency Act of 2010 (FRIA Law) R.A. 10142

Concept of Insolvency – Sections 2, 4; Section 146 to 148

Concurrence and Preference of Credits – Sec. 62 and Section 133
Special Preferred Credit – Sec. 136
Ordinary Preferred Credit – Sec. 133

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