1. What is trust receipts law?

2. What is the purpose of trust receipts law?

3. Estafa in trust receipts law
Sia vs. CA
The failure of an entrustee to turn over the proceeds of the sale of the goods,
documents or instruments covered by a trust receipt to the extent of the amount
owing to the entruster or as appears in the trust receipt or to return said goods,
documents or instruments of the trust receipt constitutes estafa.
4. What is a bank?
The General Banking Law defined banks as entities engaged in the lending of funds
obtained in the form of deposits
5. Difference between bank deposit and demand deposit?
Bank deposits are in the nature of irregular deposits. They are really loans because
they earn interest. All kinds of bank deposits, whether fixed, savings, or current are
to be treated as loans and are to be covered by law on loans
Demand deposit are all those liabilities of the Banko Sentral and of other banks
which are denominated in Philippine currency and are subject to payment in legal
tender upon demand by the presentation of depositors check.
Ordinary bank deposit or Savings deposit, withdrawal are generally effected through
withdrawal slips. Banks are prohibited from issuing/accepting withdrawal slips or
any other similar instruments designed to effect withdrawals of savings deposits
without requiring the depositors concerned to present their passbooks and
accomplishing the necessary withdrawal slips, except for banks authorized by BSP
to adopt the no passbook withdrawal system
6. Single Borrowers Limit
The total amount of loans, credit accommodations and guarantees as may be
defined by the Monetary Board that may be extended by a bank to any person,
partnership, association, corporation or other entity shall at no time exceed 25% of
the net worth of such bank
The total amount of loans, credit accommodations and guarantees may be
increased by an additional 10% of the net worth of the bank provided that the
additional liabilities are adequately secured by trust receipts, shipping documents,
warehouse receipts or other similar documents transferring or securing title
covering readily marketable, non-perishable goods which must be fully covered by
insurance

7. What is a credit card?

Any card, plate, coupon book or other credit device existing for the purpose of
obtaining money, labor or services on credit
8. CAs role in freezing assets
Sec. 10, Anti-Money Laundering Act
The Court of Appeals, (i) upon application ex parte by the AMLC; and (ii) after
determination that probable cause exists that any monetary instrument or property
is in a way related to an unlawful activity, may issue a freeze order which shall be
effective immediately.
The freeze order shall be for a period of twenty (20) days unless extended by the
court.
9. Can bank prevent prepayment of loans?
No. A borrower may at any time prior to the agreed maturity date prepay, in whole
or in part, the unpaid balance of any bank loan and other credit accommodation,
subject to such reasonable terms and conditions as may be agreed upon between
the bank and its borrowers
10. In case of unauthorized withdrawals through ATM, who is responsible,
account owner or bank?
The bank is liable because it failed to present preponderant evidence that the
depositor is liable for the alleged illegal withdrawal. The bank was negligent in
ensuring that the program of the ATM is properly working
11. A withdrew partnership funds and deposited it to X Bank, partnership
filed case against A. During trial, court ordered X Bank to produce records
of As account, is the order valid?
With respect to the peso account, Prosperity Ban may be compelled to disclose the
deposit because the money deposited or invested therein is the subject matter of
litigation. On the other hand, Eastern Bank may not be compelled to disclose the
foreign currency savings account. The same may be disclosed only upon the written
consent of the depositor or if there is a violation of the AMLA
12. ABC Bank extended loan to Clark Medina, its stockholder. As security,
Clark pledged his ABC Bank share of stocks. Is the loan valid?
The loan is invalid. A bank is not allowed to accept its own shares as a security for a
loan except when authorized by the Monetary Board. Since there is no
authorization, the loan is invalid