CREDIT TRANSACTIONS First Semester 2015

ATTY. LYSSA G.S. PAGANO CALDE

Course Description

Credit Transactions is a three (3) unit course and included in the bar examinations under Civil Law. It covers the corresponding titles of the Civil Code on loan, deposit, guaranty and suretyship, pledge, mortgage, antichresis, quasi-contracts, and concurrence and preference of credits. It will also include a discussion on the laws of real and chattel mortgage and special laws on usury, insolvency, pawnshops, and truth in lending.

Main References

New Civil Code of the Philippines (Republic Act No. 386)

Supplementary Materials

Act No. 3135, as amended by R.A. 4118Act No. 1508 Act No. 2655Central Bank Circular No. 905Act No. 2137Act No. 1956P.D. 114BSP Circular No. 656 and 711 on Regulation of PawnshopsR.A. No. 5980R.A. No. 3765

Course Outline

Part 1: Course Overview and Introduction Part 2: Loan Part 3: Deposit Part 4: Guaranty and Suretyship Part 5: Pledge Part 6: MortgagePart 7: AntichresisPart 8: Quasi-Contracts Part 9: Concurrence and Preference of Credits

Part 1: Course Overview and Introduction

Part 2: Loan (Art. 1933-1961)

• Definition and Characteristics

Chee Kiong Yam v. Malik, G.R. No. L-50550-52 October 31, 1979

Yong Chan Kim v. People GR. No. 84719 January 25, 1991

• Commodatum

• Obligations of Bailee• Obligations of Bailor

• Mutuum

Read: Usury Law (Act No. 2655) Central Bank Circular No. 905Central Bank Circular No. 416Central Bank Circular No. 799Truth in Lending Act (R.A. No. 3765)

Liam Law vs. Olympic Sawmill Co., G.R. No. L-30771Sps. Solangon vs. Jose Salazar, G.R. No. 125944, June 29, 2001Almeda vs. CA, 256 SCRA 292Medel vs. CA, 299 SCRA 481Estores v. Supangan, G.R. No. 175139First Metro v. Mountain Reserve, 369 SCRA 99Briones v. Cammayo, 41 SCRA 404Segovia Development v. Dumatol Realty, 364 SCRA 159PNB v. CA, 238 SCRA 20Truth in Lending v. Bangko Sentral G.R. No. 192986, January 2013

Part 3: Deposit (Art. 1962-2009)

• Definition and Characteristics

BPI v. IAC, 164 SCRA 630CA Agro Industrial v. CA 219 SCRA 426In re: Guardianship of Tamboco 36 Phil. 939Javellana v. Lim 11 Phil. 141Gavieres v. Tavera 1 Phil 71Serrano v. Central Bank 90 SCRA 96

• Voluntary Deposit• Obligations of Depositary• Obligations of Depositor

• Necessary Deposit

Durban Apartments v. Pioneer Insurance G.R. No. 179419

• Judicial Deposit

Read: Warehouse Receipts Law (Act No. 2137)

Part 4: Guaranty and Suretyship (Art. 2047-2084)

• Definition and Characteristics• Effects

• Extinguishment

Smith Bell v. National Bank, 42 Phil. 733Atok Finance v. CA 22 SCRA 232Palmares vs CA, 288 SCRA 422Paramount Insurance Corp vs CA, 310 SCRA 377PNB vs CA, 198 SCRA 767Finman General Assurance Corp. vs. Salik, 188 SCRA 740Towers Assurance Corp vs. Ororama Supermart, 80 SCRA 262Arranz vs. Manila Fidelity & Surety Co., Inc., 101 Phil. 272Palmares vs CA, 288 SCRA 422BPI vs. Coster, 47 Phil. 594Magdalena Estates, Inc. vs Rodriguez, 18 SCRA 967Diño vs CA, 216 SCRA 9Bitanga v. Pyramid Construction G.R. No. 173526Aglibot v. Santia G.R. No. 185945            Ong v. PCIB G.R. No. 160466 Destileria Limtuaco v. IAC G.R. No. 74369 

Part 5: Pledge (Art. 2093-2123)

Read: Pawnshop Regulation (PD 114) BSP Circular No. 656BSP Circular No. 711

• Definition and Characteristics• Requisites• Voluntary Pledge• Legal Pledge• Obligations of the Pledgor• Rights of the Pledgee

Yu v. PCIB G.R. No. 147902Bonifacio v. Rodriguez G.R. No. 132287Lim Tay v. CA G.R. No. 126891Betita v. Ganzon G.R. No. L-24137Banco Espanol v. Peterson 7 Phil. 409Yuliongsiu v. PNB 22 SCRA 585First Planters v. CIR G.R. No. 174134Chu v. CA G.R. No. L-78519

Part 6: Mortgage (Art. 2124-2131)

• Definition and Characteristics

People’s Bank and Trust Co. vs. Dahican Lumber Co., 20 SCRA 84

• Real Mortgage

Read: Act 3135, as amended

Tsai v. CA G.R. No. 120098Navarro v. Pineda G.R. No. L-18456

PNB v. Alejandro G.R. No. 194014Silos v. PNB G.R. No.181045BPI vs Concepcion & Hijos, Inc., 53 Phil 906BPI vs Yulo, 31 Phil 476Perez vs PNB, 17 SCRA 833PBCom v. CA, 253 SCRA 241

• Chattel Mortgage : Act 1508

Jaca vs Davao Lumber Co., 113 SCRA 107 Northern Motors, Inc. vs. Coquia, 68 SCRA 374

Cabral vs. Evangelista, 28 SCRA 1000).Montano v. Lim Ang G.R. No. L-13057Manila Trading v. Reyes G.R. No. L-43263Universal Motors v. Dy Hian Tat G.R. No. L-23788Magna Financial v. Colarina G.R. No. 158635Northern Motors v. Herrera G.R. No. L-32674 Servicewide v. CA G.R. No. 110048BA Finance v. CA G.R. No. 102998

• Foreclosure

Read: Rule 68 Revised Rules of CourtA.M. No. 99-10-05-0, January 15, 2000

Garcia v. Villar G.R. No. 158891Ong v. Roban G.R. No.   172592Francisco v. CA G.R. No. 125055

Rabat v. PNB G.R. No. 158755 Chu v. Laqui G.R. No. 169190

Cahilig v. Terencio G.R. No. 164470 DBP v. Guarina G.R. No. 160758 Fortaleza v. Lapitan G.R. No. 178288  

BPI vs Concepcion & Hijos, Inc., 53 Phil 906Gobonseng, Jr. vs CA 246 SCRA 472)St. Dominic Corporation vs. IAC 151 SCRA 577Sulit vs. CA 268 SCRA 441PNB vs. Nepomuceno Productions Inc., G.R. No. 139479Sta. Ignacia Rural Bank, Inc. vs. CA 230 SCRA 513Bonnevie vs. CA, 125 SCRA 122Ramirez vs CA 219 SCRA 598

Part 7: Antichresis (Art. 2132-2139)

• Definition and Characteristics• Obligations of Antichretic creditor

Legaspi v. Celestial G.R. Nos. L-43673 and 43674Adrid v. Morga G.R. No. L-13299Diego v. Fernando G. R. No. L-15128

Part 8: Quasi-Contracts (Art. 2142-2175)

• Negotiorum Gestio

Huey v. Lapiz G.R. No. L-12289Torres v. CA G.R. No. 120138

• Solutio Indebiti

PNB v. CA G.R. No. 97995PNB v. Chong G.R. No. 170865MBTC v. Absolute G.R. No. 170498CBK v. CIR G.R. Nos. 198729-30

Part 9: Concurrence and Preference of Credits (Art. 2236-2251)

Read: Insolvency Law (Act No. 1956)

• Classification• Order of Preference

Yngson v. PNB G.R. No. 171132Barreto v. Villanueva G.R. No. L-14938DBP v. NLRC G.R. Nos. 100264-81DBP v. NLRC G.R. No. 108031 

Student Evaluation

Class Standing 25%RecitationQuizzesCase Digests

Mid-term Examination 35%Final Examination 40%

• Passing Grade is 75%.• No make-up quizzes and exams will be given.