SINAMBAN vs. CHINA BANKING CORP.

Facts:

On February 19, 1990. The spouse Danilo and Magdalena manalastas executed a real estate
mortgage in china banking corporation. As capital in their rice milling business. They executed several
Promissory notes. dated April 24, 1995, loan of ₱1,800.000.00, with interest at 23% per annum. On May
23, 1995, for a loan principal of 325,000.00, with interest at 21% per annum, the spouses Sinamban
signed as co-makers. And dated February 26, 1991, for a loan principal of ₱1,300,000.00, with interest
at 22.5% per annum. only Estanislao Sinamban signed as co-maker.

Creditors contention:

Spouses Estanilao subsequently failed to pay the obligation after the foreclosed there is still remained
1.7m obligation that’s why china bank corporation file a complaint to the spouses manalastas and
sinamban.

Debtors contention:

Spouse’s sinamban averred that they do not recall having executed two promissory notes and they don’t
need to pay the amount in promissory notes. However they have admitted that they have signed the
PN’s as Co-Makers for the request of the spouses Manalastas who’s their relatives

Thus, before this Court is a Petition for Review .the 2nd Decision dated May 19, 2010 of the Court of
Appeals (CA) in CA-G.R. CV. No. 66274 modifying the 3rd Decision dated July 30, 1999 of the Regional
Trial Court of San Fernando City, Pampanga, and Branch 45 in Civil Case No. 11708.

ISSUE:

Whether or not the spouses sinamban are liable to the remaining obligation.

RULING:

Yes, spouses Sinamban and Spouses Manalastas are solidarily liable

According to art. 1216 of civil code the creditor may procced against any one of the solidary debtors.
joint and solidarily obligation, if a person binds himself solidarily with the principal debtor, thus, there is
two or more creditors or of two or more debtors in one and same obligation,

In this case, the sinamban spouses bound themselves solidarily, liable with the principal makers of
promissory notes.

Thus, Spouses Danilo and Magdalena Manalastas are solidarily liable for the amount of 1,388,320.55
Promissory Note No. OACL 634-95 dated April 24, 1995;

Spouses Estanislao and Africa Sinamban are solidarily liable with spouses Danilo and Magdalena
Manalastas for the amount of ₱249,907.87dated May 23, 1995;
Estanislao Sinamban and spouses Danilo and Magdalena Manalastas are solidarily liable for the amount
of ₱120,199.45 dated February 26, 1991

The amounts shall bear interest at the rate of twelve percent per annum from November 18, 1998 to
June 30, 2013, and six percent per annum from July 1, 2013 until fully paid.