UNIVERSITY OF ASIA AND THE PACIFIC

School of Law and Governance

ATTY. DM MARASIGAN
CREDIT TRANSACTIONS
First Semester
SY 2015 - 2016

Laws
1. Civil Code (R.A. 386 as amended)
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.

Loans (Arts. 1933 1961)

Deposit (Arts. 1962 2009)
Guaranty & Suretyship (Arts. 2047 2084)
Pledge (Art. 2085 2123)
Real Mortgage, Antichresis and Chattel Mortgage (Arts. 2124 2141)
Concurrence and Preference of Credits (Arts. 2236 2251)

2. The Usury Law (Act No. 2655 as amended)

3. The Warehouse Receipts Act (Act No. 2137 as amended)
4. The Chattel Mortgage Law (Act No. 1508)
5. The Insolvency Law (Act 1956 as amended)
6. The Financial Rehabilitation and Insolvency Act (R.A. No. 10142)

Case Outline
LOAN
General Provisions
(Art. 1933 1961)
Art. 1933

People v. Concepcion
De Los Santos v. Jarra

44 Phil 126 (1922)

15 Phil 147 (1910)

Art. 1934

Saura Import v. DBP

Naguiat v. CA
Thio v. Garcia

44 SCRA 445 (1972)

412 SCRA 591 (2003)
518 SCRA 433 (2007)

COMMODATUM
(Arts. 1935 1952)
Art. 1935

Republic v. Bagtas

6 SCRA 262 (1962)

Art. 1936

Producers Bank v. CA

397 SCRA 651 (2003)

Art. 1942

Republic v. Bagtas

6SCRA 262 (1962)

Art. 1947

Mina v. Pascual
Quintos v. Beck
Pajuyo v. CA

25 Phil 540 (1913)

69 Phil 108 (1939)
430 SCRA 492 (2004)

SIMPLE LOAN OR MUTUUM

(Arts. 1953 1961)
Art. 1953

Republic v. Grijaldo

122 Phil 1020;

15 SCRA 681 (1965)

Art. 1956

Tan v. Valdehueza
Jardenil v. Solas
Frias v. San Diego Sison
Arwood Industries v. DM Consunji
Soncuya v. Azarraga
Royal Shirt v. Co Bon Tic
Overseas v. Cordero
Ramos v. Central Bank
Lirag v. SSS

66 SCRA 61 (1975)
73 Phil 626 (1942)
520 SCRA 244 (2007)
394 SCRA 11 (2002)
65 Phil 635 (1938)
94 Phil 994 (1954)
113 SCRA 303
137 SCRA 685
153 SCRA 338

Art. 1957

Angel Jose Warehousing v.

Childa Enterprises

23 SCRA 119 (1968)

Art. 1959

Cu-Unjieng v. Mabalacat
David v. CA

54 Phil 976 (1929)

316 SCRA 710 (1999)

Art. 1960

Velez v. Balzarra

73 Phil 630 (1942)

USURY LAW (Act. 2655)

Investors v. Autoworld
Solangon v. Salazar
Spouses Pascual v. Ramos
Reformina v. Tomol

340 SCRA 735 (2000)

360 SCRA 379 (2001)
384 SCRA 105 (2002)
139 SCRA 260 (1985)

Eastern Shipping v. CA
Eastern Assurance v. CA
Mendoza v. CA

234 SCRA 78 (1994)

322 SCRA 73 (2000)
359 SCRA 438 (2001)

Bangko Sentral ng Pilipinas Monetary Board Resolution No. 79

dated May 16, 2013

DEPOSIT
(Arts. 1962 2009)
Art. 1962

Calibo v. CA

350 SCRA 427 (2001)

Art. 1972

Bishop of Jaro v. Dela Pea

26 Phil 144 (1913)

Art. 1975

CA Agro Industrial
Development Corp. v. CA

219 SCRA 426 (1993)

Art. 1977

Javellana v. Lim

11 Phil 141 (1908)

Art. 1978

Gavieres v. Tavera
Baron v. David
U.S. v. Igpuara

1 Phil 71 (1901)
51 Phil 1 (1927)
27 Phil 619 (1913)

Art. 1979

Palacio v. Sudario

7 Phil 275 (1907)

Art. 1980

Gullas v. PNB
Serrano v. Central Bank

62 Phil 519 (1935)

96 SCRA 96 (1980)

Art. 1988

Sesbreo v. CA

222 SCRA 466 (1993)

Art. 1998

De los Santos v. Tan Khey

58 OG 7693 (1992)

Art. 2003

YHT Realty v. CA

451 SCRA 638 (2005)

THE WAREHOUSE RECEIPTS LAW

(Act No. 2137, as amended)
Section 1.

Commisioner of Internal Revenue v.

Hawaiian Philippines Co.
11 SCRA 256 (1964)

Section 2.

Gonzales v. Go Tiong

104 Phil 492 (1958)

Section 7.

Roman V. Asian Banking Corp.

Bank of P.I. v. Herridge

46 Phil 705 (1922)

47 Phil 57 (1924)

Section 8.

PNB v. Producers Warehouse Assn. 42 Phil 608 (1922)

Cruz v. Valero
89 Phil 260 (1951)
Estrada v. CAR
2 SCRA 986 (1961)

Section 10.

Consolidated Terminals v.
Artex Development

63 SCRA 46 (1975)

Section 17.

Lua Kian v. MRR

19 SCRA 5 (1967)

Section 20.

American Foreign Banking Corp.

v. Herridge

49 Phil 975 (1924)

Section 38.

PNB v. Atendido

94 Phil 255 (1954)

Section 39.

Martinez v. PNB

93 Phil 756 (1953)

Section 40.

Siy Cong being v. Hongkong

Shanghai Bank
PNB v. Noahs Ark Sugar Refinery
PNB v. Se
PNB v. Sayo

56 Phil 598 (1932)

226 SCRA 36 (1993)
256 SCRA 380 (1996)
292 SCRA 202 (1998)

GUARANTY AND SURETYSHIP

(Arts. 2047 2084)
Art. 2047

Machetti v. Hospicio de San Jose

Phil. Export v. V.P. Eusebio
Manila Railroad v. Alvendia
IFC v. Imperial Textile

43 Phil 297 (1922)

434 SCRA 202 (2004)
17 SCRA 154 (1966)
475 SCRA 149 (2005)

Art. 2048

Severino v. Severino
Lee v. CA

56 Phil 187 (1931)

375 SCRA 579 (2002)

Art. 2050

De Guzman v. Santos

68 Phil 371 (1939)

Art. 2052

Municipality of Gasan v. Marasigan 63 Phil 510 (1956)

Art. 2053

Smith Bell v. PNB

Wise & Co. v. Kelly
RCBC v. Arro
Willex Plastics v. CA

42 Phil 733 (1922)

37 Phil 696 (1918)
115 SCRA 777 (1982)
256 SCRA 478 (1996)

Art. 2055

Traders Insurance v. Dy
SOCONY v. Cho Siong

104 Phil 806 (1958)

52 Phil 612 (1928)

Garon v. Project Movers

Republic v. Pal-Fox Lumber
Commonwealth v. CA
Namarco v. Marquez
Vizconde v. IAC

520 SCRA 317 (2007)

43 SCRA 365 (1972)
421 SCRA 367 (2004)
26 SCRA 722 (1969)
149 SCRA 226 (1987)

Art. 2057

Estate of Hemady v. Luzon Surety

100 Phil 388 (1956)

Art. 2058

Wise & Co. v. Tanglao

Southern Motors v. Barbosa
Saavedra v. Price

63 Phil 372 (1936)

99 Phil 263 (1956)
68 Phil 699 (1939)

Art. 2060

Arroyo v. Jungsay
Bitanga v. Pyramid

34 Phil 590 (1916)

563 SCRA 544 (2008)

Art. 2063

Ong v. PCIB

448 SCRA 705 (2005)

Art. 2065

Mira Hermanos v.
Manila Tobacconists
Cacho v. Valles

74 Phil 367 (1943)

45 Phil 107 (1932)

Art. 2066

Tuason v. Machuca
Autocorp v. Intra Strata

46 Phil 561 (1924)

556 SCRA 250 (2008)

Art. 2067

Saenz v. Yap Chuan

16 Phil 76 (1910)

Art. 2071

Manila Surety v. Batu Construction 101 Phil 494 (1957)

Gen. Indemnity v. Alvarez
100 Phil 1059 (1957)

Art. 2076

Intra Strata v. Republic

557 SCRA 363 (2008)

Art. 2079

Radio Corp. of the Phil. V. Roa

Villa v. Garcia Bosque
Security Bank v. Cuenca

62 Phil 211 (1935)

49 Phil 126 (1926)
341 SCRA 781 (2000)

Art. 2080

PNB v. Manila Surety

14 SCRA 776 (1965)

PROVISIONS COMMON TO PLEDGE AND MORTGAGE

(Arts. 2085 -2092)
Art. 2085

Arenas v. Raymundo
Union Motor Corp. v. CA
Cavite Development v. Spouses Lim
De Leon v. Calalo
Erea v. Querrer-Kauffman

19 Phil 46 (1911)
361 SCRA 506 (2001)
324 SCRA 346 (2000)
391 SCRA 752 (2002)
492 SCRA 298 (2006)

Vda De Jayme v. CA
Spouses Belo v. PNB

390 SCRA 380 (2002)

353 SCRA 359 (2001)

Art. 2088

Alcantara v. Alinea
Mahoney v. Tuason

8 Phil 110 (1907)

39 Phil 952 (1919)

Art. 2089

Dayrit v. CA
Yu v. PCIB
Metrobank v. SLGT

36 SCRA 548 (1970)

485 SCRA 56 (2006)
533 SCRA 516 (2007)

PLEDGE
(Art. 2093 2123)
Art. 2093

Yuliongsiu v. PNB
FBDC v. Yllas Lending

22 SCRA 585 (1968)

567 SCRA 454 (2008)

Art. 2095

PNB v. Atendido

94 Phil 254 (1954)

Art. 2096

Ocejo Perez v. International Bank

37 Phil 631 (1918)

Art. 2105

Sarmiento v. Javellana

43 Phil 880 (1922)

Art. 2112

See: SC Circular 32-2001

Paray v. Rodriguez

479 SCRA 571 (2006)

Manila Surety v. Velayo

21 SCRA 515 (1967)

Art. 2115

REAL MORTGAGE
(Arts. 2124 2131)
Art. 2124

Viola v. EPCIB
Dilag v. Heirs of Resureccion
PBCom v. Macadaeg
Home Bankers v. CA

572 SCRA 245 (2008)

76 Phil 650 (1946)
109 Phil 981 (1960)
457 SCRA 167 (2005)

Art. 2125

Mobil Philippines v. Diocares

29 SCRA 656 (1969)

Art. 2126

McCullough v. Veloso
Santiago v. Dionisio
Paderes v. CA

46 Phil (1924)
92 Phil 495 (1953)
463 SCRA 504 (2005)

Art. 2127

Velasco v. CA
Afable v. Belando
Peoples Bank v. Dahican Lumber

95 SCRA 616 (1980)

55 Phil 64 (1930)
20 SCRA 84 (1967)

Phil. Sugar Estate v. Camps

36 Phil 85 (1917)

Art. 2128

Lopez v. Alvarez

9 Phil 28 (1907)

Art. 2130

Litonjua v. L&R Corporation

320 SCRA 405 (1999)

Art. 2131

Union Bank v. CA
DBP v. Licuanan
DBP v. Go
Fiestan v. CA
First Marbella v Gatmaytan
Metrobank v. Wong
PNB v. Nepomuceno
PNB v. Spouses Cabatingan
Monzon v. Relova
Saguan v. PBCom
Quirino Gonzales v. CA
Piano v. Cayanong
Landrito v. CA
Metrobank v. Tan
Ibaan Rural Bank v. CA
Ramirez v. CA
Tolentino v. CA
Spouses Oliveros v. Presiding Judge
China Bank v. Ordinario

311 SCRA 795 (1999)

516 SCRA 644 (2007)
533 SCRA 460 (2007)
185 SCRA 751 (1990)
557 SCRA 155 (2008)
359 SCRA 608 (2001)
394 SCRA 405 (2002)
557 SCRA 426 (2008)
565 SCRA 514 (2008)
538 SCRA 390 (2007)
402 SCRA 181 (2003)
7 SCRA 397 (1963)
466 SCRA 107 (2005)
569 SCRA 814 (2008)
321 SCRA 88 (1999)
219 SCRA 598 (1993)
517 SCRA 732 (2007)
532 SCRA 109 (2007)
399 SCRA 430 (2003)

Read also:

Act No. 3135 as amended by Act No. 4118

A.M. no. 99-10-05-0 (as amended 7 August 2001)
SC Circular No. 7-02 (22 April 2002)
Sec. 47, R.A. 8791 (General Banking Act)
Rule 68, 1997 Rules of Civil Procedure

ANTICHRESIS
(Arts. 2132 2139)
Art. 2131

Barretto v. Barretto

37 Phil 234 (1917)

Art. 2135

Pando v. Gimenez

54 Phil 459 (1930)

CHATTEL MORTGAGE
(Arts. 2140 2141)
Art. 2140

Allied Bank v. Salas

Tsai v. CA

168 SCRA 414 (1988)

366 SCRA 324 (2001)

Art. 2141

Read also:

Acme Shoe v. CA

260 SCRA 714 (1996)

Magna Financial v. Colarina

Bicol Savings v. Guinhawa
Pameca Wood v. CA
Superlines v. ICC
Servicewide v. CA

477 SCRA 245 (2005)

188 SCRA 642 (1990)
310 SCRA 281 (1999)
398 SCRA 508 (2003)
320 SCRA 478 (1999)

Chattel Mortgage law (Act No. 1508)

Art. 1484, Civil Code
SC Circular 7-02 (22 April 2002)

CONCURRENCE AND PREFERENCE OF CREDITS

(Arts. 2236 2251)
Art. 2241

Sampaguita Pictures v. Jalwindor

93 SCRA 420 (1979)

Art. 2244

Uy v. Zamora

13 SCRA 508 (1965)

Art. 2245

Central Bank v. Morfe

63 SCRA 114 (1975)

Art. 2249

Phil. Savings Bank v. Lantin

124 SCRA 476 (1983)