LETTERS OF CREDIT 1. 2. 3. 4.

Definition Applicable laws Parties to a letter of credit Transactions involved in a letter of credit (See: Independence Principle; Fraud Exception Principle and Rule of Strict Compliance) 5. Types of letters of credit a. irrevocable letter of credit b. confirmed letter of credit c. standby letter of credit d. others CASES: Bank of the Philippine Islands vs. De Reny Fabric Industries, Inc., G.R. No. L-24821, 16 October 1970,; Bank of America, NT vs. Court of Appeals, G.R. No. 105395,10 December 1993; Feati Bank & Trust Company vs. Court of Appeals, G.R. No. 94209, 30 April 1991; Transfield Philippines, Inc. vs. Luzon Hydro Corp., G.R. No. 146717,22 November 2004; MWSS vs. Hon. Daway, G.R. No. 160732, 21 June 2004 TRUST RECEIPTS 1. 2. 3. 4. 5. 6. 7. Trust receipt transaction (Sec. 4, TRL) Form of trust receipt (Sec. 5, TRL) Parties to a trust receipt transaction Rights of the entruster (Sec. 7, 8, & 12 TRL) Obligations/Liabilities of the entrustee (Sec. 9 & 10, TRL) Rights of purchaser (Sec. 11, TRL) Penalties (Sec. 13)

CASES: People vs. Nitafan, G.R. Nos. 81559-60, 06 April 1992; Rosario Textile Mills Corp., et al. vs. Home Bankers Savings & Trust Co., G.R. No. 137232, 29 June 2005; Landl Company vs. Metrobank, G.R. No. 159622, 30 July 2004; Vintola vs. Insular Bank, G.R. No. 73271, 29 May 1987; Pilipinas vs. Ong, G.R. No. 133176, 8 August 2002) WAREHOUSE RECEIPTS LAW 1. Concept of warehousing business 2. Duties of a warehouseman 3. Warehouse receipts a. Functions b. Form of receipts (Sec. 2, WRL) c. kinds of warehouse receipts 1. negotiable 2. non-negotiable 4. Negotiation of receipts a. bearer and order receipts (Sec. 37 & 38, WRL) b. effects of negotiation (Sec. 41, 49 and 25, WRL) c. incomplete negotiation (Sec. 43, WRL) d. negotiation by fraud, mistake or duress (Sec. 47, WRL compare with Art. 1518, NCC) 5. Transfer of receipts and effects thereof (Sec. 39 and 42, WRL) 6. Liabilities of indorser or transferor (Sec. 44 & 45, WRL) 7. Warehousemans lien and its enforcement (Sec. 27, 29, 33, 34 and 35, WRL) 8. Adverse claims (Sec. 17, 18 and 19, WRL)