[go: up one dir, main page]
Scribd
Upload
325 views1 page

Spouses Pio Data V BPI

Spouses Sia took out two loans from BPI totaling P4.24 million secured by real estate. Before these loans matured, they sought additional financing of P4.8 million from BPI. BPI instead offered a P5.7 million credit line secured by other properties. Spouses Sia only drew P800,000 from this credit line and failed to pay the original loans. They argued the original loans were extinguished when BPI released the properties securing the credit line. However, the court ruled the credit line and original loans were separate obligations, and releasing the credit line properties did not extinguish the debt from the original loans since the full credit line was not drawn. The petition was denied.

Uploaded by

laura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
325 views1 page

Spouses Pio Data V BPI

Spouses Sia took out two loans from BPI totaling P4.24 million secured by real estate. Before these loans matured, they sought additional financing of P4.8 million from BPI. BPI instead offered a P5.7 million credit line secured by other properties. Spouses Sia only drew P800,000 from this credit line and failed to pay the original loans. They argued the original loans were extinguished when BPI released the properties securing the credit line. However, the court ruled the credit line and original loans were separate obligations, and releasing the credit line properties did not extinguish the debt from the original loans since the full credit line was not drawn. The petition was denied.

Uploaded by

laura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Spouses Siav.

BPI
G.R. No. 181873 27 November 2013
J. Reyes
Facts:
-

Spouses Pio Data and Sonia Sia applied for a P 240,000 loan which was
granted by BPI with a term of six months and secured by a real estate
mortgage over a parcel of land covered by TCT 102434
Subsequently, petitioners availed of a P 4 million revolving promissory note
line with a term of one year secured by TCT 102434
Before both loans matured, petitioners approached BPI for additional loans of
Php 4.8 million in total. After some discussions, the petitioners agreed to take
a credit facility of Php 5.7 million instead secured by four other parcels of
land.
Petitioners took Php 800,000 from the credit facility and paid some interest of
the loan but it was insufficient to cover the entire amount.
BPI sent demand letters to settle the principal and interest of their two
original loans. Because of the petitioners failure to settle the said loans, their
Php 5.7 million credit facility were cancelled and the collaterals were
released. Despite this, they were unable to settle their existing loans.
Petitioners filed a complaint for the issuance of a TRO arguing that BPI failed
to comply with the condition of the loan for endorsement and approval to the
IGLF until the maturity of the loan. Eventually, they amended their complaint
to claim extinguishment of obligation on the basis of the release of the Php
5.7 million credit line which is enough to pay for the original loans.

Issue: Whether the obligation to pay the original loan was extinguished on the basis
of the Php 5.7 credit facility?
Held: No. Petition denied.
Reason:
-

A credit line is that amount of money or merchandise, which a banker,


merchant, or supplier agrees to supply to a person on credit and generally
agreed to in advance.
The Court takes no issue as regards to the Php 5.7 million credit line since it
is plain as day that the entire Php 5.7 million was not availed by Spouses Sia
and that the real estate mortgages securing that line was cancelled in their
favor

You might also like