TITLE: Garcia vs. Thio amounts to Santiago.

It is upon delivery of the object of the loan, the

CASE NUMBER: G.R. No. 154878. debtor acquires ownership of such money or loan proceeds and is
bound to pay the creditor an equal amount. Thio had received,
DATE: March 16, 2007 possession, and control of the checks, thus had the choice to forward
AUTHOR OF THE DIGEST: Carissa Bonifacio them to Santiago, retain them, or return them to Garcia. Therefore,
Thio is liable for the payment of the interest of the loan.
DOCTRINE: Delivery is the act by which the res or substance thereof is
placed within the actual or constructive possession or control of NOTES:
another. The decision is further supported by the following
1. Garcia did not personally know Santiago
FACTS: 2. A friend of both parties testified that Thio planned for Garcia to
1. Rica Thio had received two cross checks, which were payable lend her money.
to Marilou Santiago, from Carolyn Garcia in the amounts of $ 3. Thio admitted to have issued checks to cover the monthly interest.
100,000 and Php 500.000. 4. Thio was listed to as one of Siantiagos creditos.
2. Garcia would then receive checks from Thio on a monthly
basis. When the loans fell due, Thio had failed to pay the
principle amounts of the loan.
3. Garcia filed a complaint for sum of money with interest
against Thio, alleging that Thio had borrowed $ 100,000 from
her and had borrowed another Php 500.000.
4. Both loans were agreed to have a monthly interest of 3% and
4%, respectfully.
5. Thio denies that she contracted two loans from Garcia as it
was Santiago who borrowed from Garcia. Thio further claims
that she was asked, by Garcia, to give the crossed checks to
Santiago.
6. The RTC ruled in favor of Garcia.
7. The CA ruled that no contract of loan existed between the
Garcia and Thio as Garcia failed to prove Thios act of
borrowing money from her.

ISSUE: W/N Thio is liable for the interests of the unpaid loans.

HELD: Yes. Although Thio did not physically receive the proceeds of
the checks, the instruments were placed in her control and
possession under an arrangement whereby she actually re-lent the