CREDIT TRANSACTIONS Arellano University School of Law

COURSE OUTLINE
REFERENCES: RA 386 (New Civil Code of the Philippines)
Act 2137 (Warehouse Receipts Law)
Act 2655 (Usury Law)
BSP Circular No. 799, Series of 2013
Act 1508 (Chattel Mortgage Law)
RA 10142 (Financial Rehabilitation and Insolvency Act)
De Leon, H.S., Comments and Cases on Credit Transactions (Rex)

I. Meaning and Scope Credit Transactions

II. Loan
A. Commodatum
B. Simple Loan or Mutuum
C. Distinctions
D. Obligations of Bailor and Bailee

(1) Navoa v. CA, GR 59255, December 29, 1995

(2) People v. Concepcion, GR L-19190, November 29, 1922
(3) Republic v. PNB, GR L-16106, December 30, 1961
(4) Saura Import and Export Co., Inc. v. DBP, GR L-24968, April 27, 1972
(5) BPI Investment v. CA, GR 133632, February 15, 2002
(6) Bonnevie v. CA, GR L-49101, October 24, 1983
(7) Central Bank of the Philippines v. CA, GR L-45710, October 3, 1985
(8) Mina v. Pascual, GR L-8321, October 14, 1913
(9) Catholic Vicar Apostolic of the Mt. Province v. CA, GR 80294-95,
September 21, 1988
(10) Tolentino v. Gonzales, GR 26085, August 12, 1927
(11) Consolidated Bank and Trust Corporation v. CA, GR 114286, April 19,
2001
(12) Casa Filipina Development Corp. v. Deputy Executive Secretary, GR
96494, May 28, 1992
(13) PNB v. CA, GR 88880, April 30, 1991
(14) Relucio v. Brillante-Garfin, GR 76518, July 13, 1990
(15) Eastern Shipping Lines v. CA, GR 97412, July 12, 1994

E. The Usury Law and BSP Circular No. 799, Series of 2013

(16) First Metro Investment v. Este Del Sol Mountain Reserve, GR 141811,
November 15, 2001
(17) Dino v. Jardines, GR 145871, January 31, 2006

III. Deposit
A. Voluntary Deposit
B. Obligations of Depositary and Depositor
C. Necessary Deposit
D. Judicial Deposit

(18) US v. Igpuara, GR L-7593, March 27, 1913

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CREDIT TRANSACTIONS Arellano University School of Law

(19) BPI v. IAC, GR L-68826, August 19, 1988

(20) CA Agro-Industrial Development Corp. v. CA, GR 90027, March 3, 1993
(21) Sia v. CA,GR 102970, May 13, 1993
(22) Guingona, Jr. v. City Fiscal of Manila, GR L-60033, April 4, 1984

IV. The Warehouse Receipts Law

V. Guaranty and Suretyship
A. Nature and Extent
B. Effects
C. Extinguishment
D. Legal and Judicial Bonds

(23) PNB v. Macapanga Producers, GR L-8349, May 23, 1956

(24) Manila Surety v. Batu Construction, GR L-9353, May 21, 1957
(25) Palmares v. CA, GR 126490, March 31, 1998
(26) Molino v. Security Diners, GR 136780, August 16, 2001
(27) Paramount Insurance v. CA, GR 110086, July 19, 1999
(28) Trade & Investment Development Corp. v. Roblett Industrial, GR 139290,
November 11, 2005
(29) Empire Insuracne v. NLRC, GR 121879, August 14, 1998
(30) People v. Maniego, GR L-30910, February 27, 1987
(31) Export and Foreign Loan Guarantee Corp. v. VP Eusebio Construction,
GR 140047, July 13, 2004
(32) International Finance Corp. v. Imperial Textile Mills, GR 160324,
November 15, 2005
(33) Spouses Evangelista v. Mercator Finance, GR 148864, August 21, 2003
(34) Philippine Pryce v. CA, GR 107062, February 21, 1994
(35) Jacinto Uy Dino v. CA, GR 89775, November 26, 1992
(36) RCBC v. Cerro, GR L-49401, July 30, 1982
(37) Visayan Distributors v. Flores, GR L-3751, October 25, 1952
(38) BA Finance Corp. v. CA, GR 94566, July 3, 1992
(39) Willex Plastic v. CA, GR 103066, April 25, 1996
(40) Tupaz IV v. CA, GR 145578, November 18, 2005
(41) Mercantile Insurance v. Ysmael, GR L-43862, January 13, 1989
(42) SBTC v. Cuenca, GR 138544, October 3, 2000

VI. Pledge
A. Definition
B. Kinds
C. Essential Requisites
D. Rights
E. Perfection F.
Foreclosure G.
Legal Pledge
H. Pledge vs. Chattel Mortgage

(43) Manila Banking Corporation v. Teodoro, GR L-53955, January 13, 1989

(44) General Insurance and Surety v. Masakayan, GR L-28764, November 29,
1973
(45) PNB v. CA, GR L-34404, June 25, 1980

ATTY. NICO B. VALDERRAMA, CPA, MPM 2

CREDIT TRANSACTIONS Arellano University School of Law

(46) Llanto v. Alzona, GR 150730, January 31, 2005

(47) Cavite Development Bank v. Lim, GR 131679, February 1, 2000
(48) Cojuangco v. Gonzales, GR L-4505 and L-5228, September 15, 1953
(49) Vda. De Jayme v. CA, GR 128669, October 4, 2002
(50) Belo v. PNB, GR 134330, March 1, 2001
(51) Caltex v. CA, GR 97753, August 10, 1992
(52) Yuliongsiu v. PNB, GR L-19227, February 17, 1968
(53) PNB v. Manila Investment and Construction, GR L-27132, April 29, 1971

VII. Real Mortgage

A. Definition
B. Characteristics
C. Essential Requisites
D. Foreclosure

(54) Soriano v. Galit, GR 156295, September 23, 2003

(55) Peoples Bank v. Dahican Lumber, GR L-17500, May 16, 1967
(56) Spouses Flancia v. CA, GR 146997, April 26, 2005
(57) DBP v. CA, GR 110053, October 16,1995
(58) Carpo v. Chua, GR 150773 and 153599, September 30, 2005
(59) Asuncion v. Evangelista, GR 133491, October 13, 1999
(60) Cebu International Finance v. CA, GR 107554, February 13, 1997
(61) Republic v. Lim, GR 161656, June 29, 2005
(62) MBTC v. Alejo, GR 141970, September 10, 2001
(63) Luzon Lumber v. Quiambao, GR L-5638, March 30, 1954
(64) PBCOM v. CA, GR 118552, February 5, 1996
(65) Union Bank v. CA, GR 164910, September 30, 2005
(66) State Investment House v. CA, GR 99308, November 13, 1992
(67) GSIS v. CA, GR 128118, February 15, 2002
(68) Spouses Agbada v. Inter-Urban Developers, GR 144029, September 19,
2002
(69) Lucena v. CA, GR L-77468, August 25, 1999
(70) DBP v. Aguirre, GR 144877, September 7, 2001
(71) PNB v. Rabat, GR 134406, November 15, 2000
(72) Fortune Motor v. MBTC, GR 115068, November 28, 1996
(73) GSIS v. CA, GR 101632, January 13, 1997
(74) Benguet Management v. CA, GR 153571, September 18, 2003
(75) Tarnate v. CA, GR 100635, February 13, 1995
(76) DBP v. Vda. De Moll, GR L-25802, January 31, 1972
(77) Spouses Manalansan v. Castaneda, June 27, 1978
(78) Sulit v. CA, GR 119247, February 17, 1997
(79) Bank of America v. American Realty, GR 133876, December 29, 1999
(80) BPI v. Noblejas, GR L-12128, March 31, 1959
(81) Aclon v. CA, GR 106880 and 120190, August 20, 2002
(82) Spouses Landrito v. CA, GR 133079, August 9, 2005
(83) Co v. PNB, GR L-51767, June 29, 1982
(84) China Banking v. CA, GR 129644, September 7, 2001
(85) DBP v. Gatal, GR 138567, March 4, 2005
(86) Ibasco v. Caguioa, GR L-62619, August 19, 1986
(87) Bukidnon Doctors v. MBTC, GR 161882, July 8, 2005

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CREDIT TRANSACTIONS Arellano University School of Law

(88) Primetown Property v. Juntilla, GR 157801, June 8, 2005

VIII. Antichresis
A. Definition
B. Characteristics
C. Obligations

(89) Ramirez v. CA, GR L-38185, September 24, 1986

IX. Chattel Mortgage Law

A. Definition
B. Characteristics
C. Registration

(90) Servicewide Specialists v. IAC, GR 74553, June 8, 1989

(91) Tsai v. CA, GR 120098, October 2, 2001
(92) Acme Shoe v. CA, GR 103576, August 22, 1996
(93) Standard Oil Company v. Jaramillo, GR L-20329, March 16, 1923
(94) Jaca v. Davao Lumber, GR L-25771, March 29, 1982
(95) PAMECA Wood Treatment Plant v. CA, GR 106435, July 14, 1999
(96) Cerna v. CA, GR L-48359, March 30, 1993
(97) Bicol Savings v. Guinhawa, GR L-62415, August 20, 1990

X. Concurrence and Preference of Credits

A. Definitions
B. Exempt Property
C. Preference of Credit vs. Lien
D. Classification of Credits
E. Order of Preference

(98) De Barreto v. Villanueva, GR L-14938, January 28, 1961

(99) Uy v. Zamora, GR L-19482, March 31, 1965
(100) Sampaguita Pictures v. Jalwindor Manufacturers, GR L-43059, October
11, 1979
(101) J.L. Bernardo Construction v. CA, GR 105827, January 31, 2000
(102) DBP v. NLRC, GR 82763-64, March 19, 1990
(103) Rubberworld v. CA, GR 126773, April 14, 1999
(104) Carried Lumber v. ACCFA, GR L-21836, April 22, 1975

XI. The Insolvency Law

A. Definition
B. Suspension of Payments
C. Voluntary Insolvency
D. Involuntary Insolvency

(105) Advent Capital v. Alcantara, GR 183050, January 25, 2012

(106) North Bulacan Corp. v. PBCOM, GR 183140, August 2, 2010

ATTY. NICO B. VALDERRAMA, CPA, MPM 4

CREDIT TRANSACTIONS Arellano University School of Law

Grading System:

30% Class Standing (15% Recitation, 10% Quizzes, 5% Prelim Exam)

30% Midterm Exam
40% Final Exam
100%

Notes:

i. Always bring at least five (5) sheets of yellow pad.

ii. Recitation will be conducted every class session. If not present when called, a grade
of 65 shall be given.
iii. Expect to have at least one (1) quiz every class session.
iv. No adjustments shall be made in the computation of the final grade.
v. Students who earned any final grade lower than 70 shall be given a final grade of 70.

The practice of law, despite its many, many flaws, can still be a very noble thing and I like
to think that its just a little more noble with me in it.
-Harriet Korn, Harrys Law

ATTY. NICO B. VALDERRAMA, CPA, MPM 5