DLSU College of Law PETER D.A.

BAROT
1st Semester, 2019 - 2020 pdbarot@picazolaw.com

LAW 305M : CREDIT TRANSACTIONS

2:00 – 5:00 pm
G01 – Thursdays – Rm 304
G03 – Tuesdays – Rm 402

Course Description: A course on credit transactions. Subjects covered include: loans; guaranty, suretyship, mortgage, antichresis, personal property security,
and other security arrangements; deposits; insolvency and bankruptcy.

Prerequisite: Obligations and Contracts

Principal Laws 1. Civil Code, Book IV, Titles XI, XII, XV, XVI, XIX
Covered: 2. Personal Property Security Act (RA 11057)
3. Truth in Lending Act (RA 3765)
4. Letters of Credit (Code of Commerce, Arts. 567, 568); Trust Receipts Law (PD 115)
5. Usury Law and related CB/BSP Circulars
6. Financial Rehabilitation and Insolvency Act (FRIA)

Textbook: GOMEZ-SOMERA, Stephanie V., CREDIT TRANSACTIONS, Notes and Cases, Volumes 1 and 2, 2nd ed. 2015; 2018 Supplement
Including corrections. See http://www.someralaw.org/2016/05/erratum-revised-pages-216-564-and-566.html?m=1

Reference Book: DE LEON, Hector S. and DE LEON, Hector Jr. M., COMMENTS AND CASES ON CREDIT TRANSACTIONS, 2013

Final Grade: Recitation

Mid-Term Examinations
Final Examinations

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 COURSE CALENDAR

Date Topics Reference; Reading Materials Cases

Wks 1-2  INTRODUCTION  Gomez-Somera, Introduction  Garcia v Thio, 518 SCRA 433 (2007)
 LOANS, IN GENERAL  Gomez-Somera, Part I, Ch. 1  Saura Import and Export Co., Inc. v DBP, 44 SCRA 445 (1972)
Jul 25;  BPI Investment Corp v CA, ALS Management and Development Corp., 377
SCRA 117 (2002)
Jul 30  Pantaleon v American Express International, Inc., 629 SCRA 276 (2010)
 Spouses Ong v. BPI Family Savings Bank (GR No. 208638, Jan. 24, 2018)

Wks 3-4  COMMODATUM  Gomez-Somera, Part I, Ch. 2  Producers Bank of the Philippines v CA, 397 SCRA 651 (2003)
 Pajuyo v CA, 430 SCRA 492
Aug 6/13;  Republic v Bagtas, 6 SCRA 262 (1962)
 Quintos and Ansaldo v Beck, 69 Phil 108 (1939)
Aug 8/15
 MUTUUM (SIMPLE LOAN)  Gomez-Somera, Part I, Ch. 3  Spouses Ramon Sy and Anita Ng v Westmont Bank (GR No. 201074, Oct. 19,
2016)
 People vs. Concepcion, 44 Phil. 126 (1922)
 People v Puig and Porras, 563 SCRA 564 (2008)
 BPI Family Bank v Franco, 538 SCRA 184 (2007)
 Frias v San Diego-Sison, 520 SCRA 244 (2007)
 Siga-an v Villanueva, 576 SCRA 696 (2009)
 Spouses Juico v China Banking Corp., 695 SCRA 520 (2013)
 Spouses Silos v Philippine National Bank, 728 SCRA 617 (2014)
 Yulo v BPI (GR 217044. January 16, 2019)
 Ligutan v CA, 376 SCRA 560 (2002)
 Eastern Shipping Lines, Inc. v CA, 234 SCRA 78 / Nacar v Gallery Frames,
703 SCRA 439 (2013)
 Estores v Spouses Supangan, 670 SCRA 95 (2012)
 Abella v Abella (G.R. No. 195166, July 8, 2015)
 Apo Fruits Corp. v LBP (GR No. 217985-86, Mar. 21, 2018)
 De la Paz vs. L&J Development Company, 734 SCRA 377 (2014)

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 Date Topics Reference; Reading Materials Cases
 Isla v Estorga (GR 23374, July 2, 2018)

 Truth in Lending Act  UCPB v Samuel and Beluso, 530 SCRA 567

 Usury Law  Advocates for Truth in Lending, Inc. and Olaguer v BSP, 688 SCRA 530
(2013)
 Carpo v Chua and Dy Ng, 471 SCRA 471 (2005)

Wk 5  SECURED TRANSACTIONS,  Gomez-Somera, Part III,

IN GENERAL Ch. 1
Aug 20;
 PERSONAL SECURITY  Gomez-Somera, Part III,  Tupaz IV and Tupaz v CA and BPI, 475 SCRA 398 (2005)
Aug 22 Ch. 4-5  Security Bank and Trust Co. v Cuenca, 341 SCRA 781 (2000)
 GUARANTY  Palmarez v CA and M.B. Lending Corp., 288 SCRA 422 (1998)
 E. Zobel, Inc. v CA, 290 SCRA 1 (1998)
 SURETY  Philippine Blooming Mills, Inc. and Ching v CA, 413 SCRA 445 (2003)
 Escano and Silos v Ortigas, Jr., 526 SCRA 26 (2007)
 Aglibot vs. Santia, 687 SCRA 283 (2012)
 International Finance Corporation vs. Imperial Textile Mills, Inc., 475 SCRA
149 (2005)
 Lim vs. Security Bank Corporation, 718 SCRA 709 (2014)
 Trade and Investment Development Corporation of the Philippines
(Formerly Philippine Export and Foreign Loan Guarantee Corporation) vs.
Asia Paces Corporation, 716 SCRA 67 (2014)

Wks 6-7  REAL SECURITY  Gomez-Somera, Part III, Ch. 6  DBP v CA, 284 SCRA 14 (1998)
 Bustamante v Rosel, 319 SCRA 413 (1999)
Aug 27/  Ong v Roban Lending Corp., 557 SCRA 516 (2008)
Sept 3;  Sps Sy v De Vera-Navarro (G.R. No. 239088. April 3, 2019)

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 Date Topics Reference; Reading Materials Cases
 REAL ESTATE MORTGAGE  Gomez-Somera, Part III, Ch. 9  Prudential Bank v Alviar and Alviar, 464 SCRA 353 (2005)
Aug 29/  People's Bank & Trust Co. and AG&P Manila v Dahican Lumber Co., 20
Sept 5 SCRA 84 (1967)
 Star Two (SPV-AMC), Inc. v Paper City Corp. of the Phil., 692 SCRA 438
(2013)
 Garcia v Villar, 675 SCRA 80 (2012)
 Pineda v Zuñiga Vda De Vega (G.R. No. 233774. April 10, 2019)
 Korea Exchange Bank v Filkor Business Integrated, Inc., 380 SCRA 381
(2002)
 Welbit Construction Corp. v Heirs of de Castro (GR 210286, July 23, 2018)
 Grand Farms, Inc. and Phil. Shares Corp. v CA, 193 SCRA 748 (1991)
 Spouses Bautista v Premiere Development Bank (GR 201881, Sept 5, 2018)
 Lim vs. Development Bank of the Philippines, 700 SCRA 210 (2013)
 Huerta Alba Resort, Inc. v CA, 339 SCRA 534 (2000
 Goldenway Merchandising Corporation vs. Equitable PCI Bank, 693 SCRA
439 (2013)
 Cameron Granville 3 Asset Management, Inc. v Chua and Filiden Realty
and Development Corp. (GR No. 191170, Sept. 14, 2016); White Marketing
Development Corp. v Granwood Furniture & Woodwork, Inc. (G.R. No.
222407, Nov. 23, 2016)
 Medida v CA, 208 SCRA 887 (1992)
 Spouses Yap v Spouses Dy, 654 SCRA 593 (2011)
 Suico v PNB, 531 SCRA 514 (2007)
 Cua Lai Chu v Lacqui and PBCom, 612 SCRA 227 (2010)
 Spouses Teves v. Integrated Credit and Corporate Services (GR No. 216714,
Apr. 4, 2018)
 Ermitaño vs. Paglas, 689 SCRA 158 (2013)
 Spouses Tolosa v UCPB, 695 SCRA 138 (2013)
 BPI Family Savings Bank, Inc. v Golden Power Diesel Sales Center, Inc., 639
SCRA 405 (2011)
 Homeowners Savings and Loan Bank v Felonia, 717 SCRA 358 (2014)

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 Date Topics Reference; Reading Materials Cases
 PNB v Heirs of Alonday (GR No. 171865, 12 Oct. 2016)
 Roldan v Spouses Barrios (GR No. 214803, Apr. 23, 2018)

 ANTICHRESIS  Gomez-Somera, Part III, Ch. 10  Diego v Fernando, 109 Phil. 143 (1960)
Wk 8  DEPOSIT  Gomez-Somera, Part II, Ch. 1-2  BPI v IAC and Zshornack, 164 SCRA 630 (1988)
 VOLUNTARY DEPOSIT  CA Agro-Industrial Development Corp. v CA and Security Bank, 219 SCRA
Sept 10; 426
 Roman Catholic Bishop of Jaro v De La Pena, 26 Phil 144 (1913)
Sept 12  Chan vs. Maceda, 402 SCRA 352 (2003)
 Triple V Food Services, Inc. vs. Filipino Merchants Insurance Company, Inc.,
G.R. 160544, February 21, 2005

 NECESSARY DEPOSIT  Gomez-Somera, Part II, Ch. 3-4  Durban Apartments Corp. v Pioneer Insurance and Surety Corp., 639 SCRA
441 (2011)
 JUDICIAL DEPOSIT  YHT Realty Corp. v CA, 451 SCRA 638 (2005)

 Warehouse Receipts  Gomez-Somera, Part II, Ch. 5  Philippine National Bank v Se, 256 SCRA 380 (1996)
 General Bonded
Warehouse Act

Wk 9  LETTERS OF CREDIT  Gomez-Somera, Part III,  Bank of America vs. Court of Appeals, 228 SCRA 357 (1993)
Ch. 2  Transfield Philippines, Inc. v Luzon Hydro Corp., 443 SCRA 307 (2004)
Sept 17;
 TRUST RECEIPT  Gomez-Somera, Part III,  Colinares and Veloso v CA, 339 SCRA 609 (2000)
Sept 19 Ch. 3  Hur Tin Yang vs. People of the Philippines, 703 SCRA 606 (2013)
 Sps. Dela Cruz vs. Planters Products, Inc., 691 SCRA 28 (2013)

Wk of Sept 25 – Oct 01 MID -TERM EXAMINATION (Exact Date TBA; Coverage TBA)

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 Wks 11-13  SECURITY OVER  Gomez-Somera, 2018  Manila Banking Corp v Teodoro, Jr. and Teodoro, 169 SCRA 95 (1989)
PERSONAL PROPERTY Supplement  Goldstar Rivermount, Inc. v Advent Capital and Finance Corp. (G.R. No.
 RA 11057 211204. December 10, 2018)
Oct 8, 15, 22;  Yau Chu v CA, 177 SCRA 793 (1989)
 Citibank, NA and Investors Finance Corp. v Sabeniano, 504 SCRA 378 (2006)
Oct 3, 10, 17  PCI Leasing & Finance, Inc. v Trojan Metal Industries, Inc., 638 SCRA 615
(2010)
 Makati Leasing & Finance Corp. v Wearever Textile Mills, Inc. and CA, 122
SCRA 296 (1983)
Wks 14-15  INSOLVENCY  Gomez-Somera, Part IV, Ch. 1-2  De Barreto v Villanueva, 1 SCRA 288 (1961); On MR, 6 SCRA 929 (1962)
 CONCURRENCE AND  RA 11052, §22  J.L. Bernardo Construction v CA, 324 SCRA 24 (2000)
Oct 29/ PREFERENCE OF CREDITS  Cordova v Reyes Daway Lim Bernardo Lindo Rosales Law Offices, 526
Nov 05; SCRA 300 (2007)
 DBP vs. CA, 363 SCRA 307 (2001)
Oct 24, 31  Philippine Deposit Insurance Corporation vs. Bureau of Internal Revenue,
698 SCRA 311 (2013)

 SUSPENSION OF  Gomez-Somera, Part IV, Ch. 3

PAYMENTS
Wks 16-17  REHABILITATION  Gomez-Somera, Part IV, Ch. 4  Metrobank v Liberty Corrugated Boxes Manufacturing Corp. (GR No.
184317, Jan. 25, 2017)
Nov 12, 19;  Allied Banking Corp. In re Rehabilitation of Steel Corp. of the Phil. (GR No.
191939, Mr. 14, 2018)
Nov 7, 14  RCBC v IAC, 320 SCRA 279 (1999)
 Sobrejuanite v ASB Development Corp., 471 SCRA 763 (2005)
 De la Torre v. Primetown Property Group, Inc. (GR No. 221932, Feb. 14,
2018)
 Town and Country Enterprises, Inc. v Quisumbing, 682 SCRA 128 (2012)
 MWSS v Daway and Maynilad Water Services, Inc., 432 SCRA 559 (2004)
 Panlilio v RTC-Manila, 641 SCRA 438 (2011)
 Pryce Corp. v China Banking Corp., 716 SCRA 207

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  Bank of the Philippine Islands vs. Sarabia Manor Hotel Corporation, 702
SCRA 432 (2013)
 Victorio-Aquino vs. Pacific Plans, Inc., 744 SCRAS 480 (2014)
 BIR Asst. Commissioner v Lepanto Ceramics, Inc. (GR No. 224764, Apr. 24,
2017)
 Puerto Azul Land, Inc. v Export Industry Bank (GR No. 213020, March 20,
2017)

Wk 18  LIQUIDATION  Gomez-Somera, Part IV, Ch. 5  Consuelo Metal Corp v Planters Development Bank and Maningas, 555
SCRA 465 (2008)
Nov 26;  Yngson v PNB, 678 SCRA 447 (2012)

Nov 21

Nov 26 FINAL EXAMINATIONS

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