HAW PIA v.

THE CHINA BANKING CORPORATION

[G.R. No. L-554. April 9, 1948.]
Facts:
Haw Pia owed defendant a sum of money secured by a mortgage. During the
Japanese occupation, the bank of Taiwan was given the right by the Military
Administration to liquidate the assets of enemy banks. Haw Pia then paid off
the mortgage, not to the defendant but to the Bank of Taiwan. Liberation
came. Haw Pia is now asking for the cancellation of the mortgage on the
ground that it had been paid.
Issue:
Did payment of Haw Pia to the Bank of Taiwan extinguish the debt?
Held:
Yes, payments by Haw Pia to the Bank of Taiwan extinguished the mortgage
debt, inasmuch as under the law then prevailing, the Bank of Taiwan was
authorized to receive payment. Hence, the mortgage should be cancelled.