CREDTRANS FIRST METRO

1. First Metro
o FMIC, Este Del Sol,
o FMIC granted Este Del Sol a loan of 7.38 million to finance the construction and development of Este Del
Sol Mountain reserve
o Under the terms of the loan agreement, the proceeds of the loan were to be released on a staggered
basis.
o 16% per annum based on a diminishing balance
o 36 equal and consecutive monthly installments beginning from the 13 th month from the date of
the first release
o in case of default, acceleration clause and the amount due is subject to a 20% one time penalty
and
 The amount due shall bear interest at the highest rate permitted by law from the date
of default until full payment.
 Liquidated damages PA of 2% compounded quarterly of the unpaid balance AND
accrued interests on all other penalties and liabilities.
o Este Del Sol on the other hand, executed:
o REM over 2 parcels of land
o Continuing suretyship by the co-respondents
o An underwriting agreement that will require payment of a supervising fee of 200,000 annually
and a consultancy agreement
o Este Del Sol failed to meet the schedule of payments.
o Foreclosed
o FMIC highest bidder
o HOWEVER, there is a deficiency balance, and the sureties were not able to pay.
o FMIC then instituted a suit for collection
o Now, Este Del Sol is assailing the underwriting and Consultancy agreement for being used to conceal an
usurious loan.
o THE RTC ruled in favor of FMIC but CA REVERSED SAYING THAT IT IS AN USURIOUS LOAN.
o How did the court rule that it was usurius?
 UaC agreements have the same date as that of the Loan Agreement
 Failure of the undertaking by FMIC as there was no organization to sell any stock of
este del sol
 Underwriting as a condition precedent

2. David v. CA
o David and sheriff pena
o Diaz, the presiding judge of the RTC, ordered private respondent Afable to pay petitioner 66500 plus
interest until fully paid plus 5000 for attorney fees from July 24 1974 until fully paid
o Judge Diaz then amended the decision so that the legal rate of interest should be computed from January
4 1966 instead of from July 24 1974.
o Now David is assailing the decision by sheriff pena in not executing a deed of sale in his favor.

3. Investors Finance Corporation

o FNCB, Anthony Que as president of AUTOWORLD, who is also the president of Baretto. You actually
know this case na.
o Ito yung madaming transactions
o Anthony Que in behalf Autoworld obtained a loan with FNCB
o But since there was an usury law, FNCB informed Autoworld that they do not deal with direct
lending transactions
 o Some time after, the VP of FNCB iformed Anthony que that although they cannot deal in direct lending, it
could instead extend funds by purchasing any of its outstanding receivables at a discount.

4. Mendoza
o Danilo Mendoza engaging in business under Atlantic Exchange Philippines
o He was granted by PNB a credit line and a lettor of credit line.
o As a security of credit accomodations, Mendoza mortgaged to respondent PNB the following
o 3 parcels of land
o his house
o And Several pieces of machinery
o The mortgages had an escalation clause which states that the interest charged thereon may be increased
by the BoD of the mortgagee within the rates allowed by law.
o Petitioner also executed in favor of respondent 3 promissory notes which had the same stipulations which
state that the interest may at any time, without notice, be raised within the limits allowed by law.