i.

Doctrine of Independence
ii. Fraud Exception Principle
iii. Doctrine of Strict Compliance

University of San Jose-Recoletos

School of Law
2nd Sem., S.Y. 2014-2015

II.

Trust Receipts Law (P.D. No. 115)

a. Definition and Purpose
South City Homes v. BA Finance (G.R. No. 135462,
December 7, 2001) ; Ching v. CA (331 SCRA 16)
b. Concept of Trust Receipt Transaction
i. Loan/Security Feature
ii. Ownership of the Goods, Documents and Instruments
under a Trust Receipt
Nacu v. CA (G.R. No. L-I08638, March 11,1994)
c. Coverage of Trust Receipts Transaction
Robles v. CA (G.R. No. 59640, July 15, 1991); Allied v.
Ordonez (GR No. 82495, December 10, 1990); Ng v.
People of the Philippines (GR No. 173905, April 23, 2010)
d. Parties
e. Rights and Obligations of Parties
f. Penalty for Breach of Entrustee
Prudential v. IAC (216 SCRA 257) ; Cotinares v. CA (339
SCRA 609); Tiomico v. CA (G.R. No. 122539, March 4,
1999) ; Phil. Blooming v. CA (GR No. 142381, October 15,
2003) ; Sarmiento Jr. v. CA (GR No. 122502, December
27, 2002)
g. Letter of Credit-Trust Receipt Transactions
Rizal Commercial Banking Corporation v. Alfa RTW
Manufacturing Corp. G.R. No. 133877, November 14,
2001)

III.

Warehouse Receipts Law (Act 2137)

a. Purpose and Coverage
b. Nature and Functions of a Warehouse Receipt
c. Assignment and Negotiation of Warehouse Receipt
d. Distinction between a Negotiable Instrument and a Negotiable
Warehouse Receipt
e. Duties of a Warehouseman
f. Warehouseman's Lien

IV.

Bulk Sales Law (Act 3592)

a. Nature and Objective
b. Business Covered
c. Transactions Covered
d. Bulk Sales Not Covered

Special Commercial Laws

Two (2) Units
Tuesdays 5:30-7:30 PM
The course is a general integration of the principles in special commercial
laws relating to Letters of Credit, Warehouse Receipts Law, Bulk Sales Law,
Trust Receipts Law, Truth in Lending Act, Banking Laws, Anti-Money
Laundering Law, Foreign Investment Act and other related laws.
Text/References:
Commercial Law Review, Villanueva (Rex Bookstore)
Banking Laws and Jurisprudence, Dizon and Dizon. (Rex Bookstore)
Notes and Cases on Banking and Allied Laws, Ignacio. (Central Bookstore)
I.

Letters of Credit (Articles 567-572, Code of Commerce)

a. Definition and Nature
Prudential Bank v. IAC (216 SCRA 257); Bank of America
NT. & SA v. CA (G.R. No. 105395, December 10, 1993);
MWSS v. Daway (G.R. No. 160732, June 21, 2004)
b. Parties.
Bank of America NT. & SA v. CA (G.R. No. 105395,
December 10, 1993)
c. Perfection
Belman Inc. v. Central Bank (104 Phil. 877) ; Johannes
Schuback & Sons v. CA (227 SCRA 717)
d. Independent Contracts involved in a Letter of Credit
Keng Hua Paper Products v. CA (286 SCRA 257);
Transfield Phil. Inc. v. Luzon Hydro Corp. (G. R. No.
146717 November 22, 2004); Feati Bank v. CA (196SCRA
576)
e. Rights and Obligations of Parties in Letter of Credit
Bank of Philippine Islands v. De Reny Fabric Industries,
Inc. (35 SCRA 25.6) ; Insular Bank v. IAC (167 SCRA 450) ;
Phil. Virginia Tobacco Adm. v. De los Angeles (164 SCRA
543)
f. Kinds of Letters of Credit
g. Basic Principles of Letter of Credit

e. Obligation of Seller
f. Bulk Transfers for Nominal Value
g. Consequences of Violation of Law
V.

f.

Banking Laws (General Terms and Provisions)

1. The New Central Bank Act (R.A. No. 7653) (Basics)

a. State policy Sec. 1, NCBA
b. Creation of the Bangko Sentral ng Pilipinas (BSP) Sec. 2, NCBA
c. Responsibility and Primary Objective Sec. 3, NCBA
d. Monetary Board - Powers and Functions Secs. 6-16, NCBA
e. How the BSP handles banks in distress
1. Conservatorship: Sec. 67, GBL; Secs. 29 and 30, NCBA
a. Grounds Sec. 29, par. 1, NCBA
b. Appointment of Conservator Sec. 29, par. 1 and Sec. 30,
last par. NCBA
c. Powers of Conservator Sec. 29, par. 1, NCBA; First
Philippine International Bank v. Court of Appeals,
252 SCRA 259 (1996)
d. Qualifications and Remuneration Sec. 29, pars. 2 and 3,
NCBA
e. Termination of Conservatorship Sec. 29, last par., NCBA
f. Effect: Bank cannot be compelled to pay same bonuses
to employees Producers Bank of the Philippines v.
NLRC, 355 SCRA 489 (2001)
g. Judicial Review Sec. 30, 2nd to last par., NCBA
2. Voluntary Liquidation Sec. 68, GBL
3. Receivership and Involuntary Liquidation Sec. 69, GBL; Sec.
30, NCBA
a. Governing Law In Re: Petition for Assistance in the
Liquidation of the Rural Bank of Bokod (Benguet),
Inc., PDIC v. Bureau of Internal Revenue, 511 SCRA
123 (2006)
b. Grounds Secs. 30 and 36, 2nd par., NCBA; Sec. 53, last
par., GBL; Banco Filipino Savings and Mortgage
Bank v. Monetary Board, 204 SCRA 767 (1991);
Rural Bank of San Miguel, Inc. v. Monetary Board,
Bangko Sentral ng Pilipinas, 516 SCRA 154 (2007)
c. Who May Be Receiver Sec. 30, 1st and 2nd pars., NCBA
d. Duties of Receiver Larrobis, Jr. v. Philippine
Veterans Bank, 440 SCRA 34 (2004)
e. Close Now-Hear Later Doctrine Central Bank of the
Philippines v. Court of Appeals, 220 SCRA 536

g.

4.

a.
b.

c.
d.

(1993); Rural Bank of Buhi v. Court of Appeals, 162

SCRA 288 (1988)
Liquidation
i. As opposed to rehabilitation Philippine
Veterans Bank Employees Union-N.U.B.E. v.
Hon. Benjamin Vega, 360 SCRA 33 (2001)
ii. Actions to take Sec. 30, NCBA
iii. How assets are distributed Secs. 31 and 32,
NCBA
iv. All claims filed in liquidation court Ong v. Court
of Appeals, 253 SCRA 105 (1996); Manalo v.
Court of Appeals, 366 SCRA 752 (2001)
v. Disposition of banking franchise Sec. 33, NCBA
Effects of Receivership and Liquidation
i. Restriction on capacity to act Villanueva v.
Court of Appeals, 244 SCRA 395 (1995);
Abacus Real Estate Development Center, Inc.
v. The Manila Banking Corporation, 455 SCRA
97 (2005)
ii. Penalties for transaction after Bank becomes
insolvent Sec. 70, GBL
iii. Effect on garnishment, levy on attachment or
execution Sec. 30, NCBA; Lipana v.
Development Bank of Rizal, 154 SCRA 257
(1987)
iv. Stoppage of business Provident Savings Bank
v. Court of Appeals, 222 SCRA 125 (1993)
v. Interest on deposits Fidelity Savings and
Mortgage Bank v. Cenzon, 184 SCRA 141
(1990); But See Rural Bank of Sta. Catalina,
Inc. v. Land Bank of the Philippines, 435
SCRA 183 (2004)
Judicial Review
Availability of remedy Sec. 30, NCBA
Ground: grave abuse of discretion Central Bank v.
Court of Appeals, 106 SCRA 143 (1981); Banco
Filipino Savings and Mortgage Bank v. Monetary
Board, 204 SCRA 767 (1991)
Jurisdiction Sec. 4, Rule 65, Rules of Court
Who may question Central Bank of the Philippines
v. Court of Appeals, 220 SCRA 537 (1993); Central
Bank of the Philippines v. Court of Appeals, 208
SCRA 652 (1992)

e. Actions of the MB final and executory; Injunction

Central Bank of the Philippines v. Dela Cruz, 191
SCRA 346 (1990); Sec. 22, PDIC Charter
f. Effect of Filing Petition for Review Banco Filipino
Savings and Mortgage Bank v. Ybaez,
SCRA
(2004)
g. Liability of the MB and PDIC Miranda v. Philippine
Deposit Insurance Corporation, 501 SCRA 288
(2006)
f.

How the BSP handles exchange crisis

1. Legal tender power Sec. 52, NCBA; BSP Circular No. 537,
Series of 2006
2. Rate of exchange Sec. 74 NCBA

2. General Banking Act (R.A. No. 8791)

a. Definition Sec. 3.1, GBL
b. Elements Republic v. Security Credit and Acceptance
Corporation, 19 SCRA 58 (1967); Central Bank v. Morfe,
20 SCRA 507 (1967); Baas v. Asia Pacific Finance
Corporation, 343 SCRA 527 (2000)
i. Engaged in lending of funds
ii. Obtained in the form of deposits
iii. From the public, which shall mean 20 or more persons
Sec. 8.2, GBL
c. Classification of Banks
d. Distinction of Banks from Quasi-Banks and Other Entities
e. Ownership/Capitalization of Banks
i. Organization Sec. 8, GBL
1. Stock corporation Sec. 8.1, GBL
2. Funds obtained from the public (20 or more
persons) Sec. 8.2, GBL
3. Minimum capital requirements (amount in million
Pesos) Sec. 8.3, GBL; BSP Circular No. 257
(Series of 2000)
4. Capability and other requirements Sec. 8, par. 2,
GBL
ii. Stockholdings
1. Foreign stockholdings
a. Individuals and non-banks Sec. 11, GBL;
BSP Circular No. 256 (Series of 2000)

b. Foreign banks Secs. 11 and 73, GBL;

Foreign Banks Liberalization Act
2. Filipino stockholdings Sec. 11, par. 1, GBL; BSP
Circular No. 256 (Series of 2000); BSP Circular No.
332 (Series of 2002)
a. Stockholdings of family groups or related
interests Secs. 12 and 13, GBL; BSP
Circular No. 332 (Series of 2002)
b. Required public offering: At least 10% of
capital stock of Universal Bank Sec. 2.2,
BSP Circular No. 271 (Series of 2001)
iii. Directors and Officers
1. Composition of Board Secs. 15 and 17, GBL; Sec.
7, Foreign Banks Liberalization Act; Sec. 23,
Corporation Code
2. Qualifications
a. Own at least one share Sec. 23,
Corporation Code
b. Fit and proper rule Sec. 16, GBL;
Busuego v. Court of Appeals, 304 SCRA
473 (1999)
c. Other minimum qualifications Guidelines
for the Establishment of Banks
3. Disqualifications

Guidelines
for
the
Establishment of Banks
a. Criminal conviction Sec. 27, Corporation
Code
b. Public officials Sec. 19, GBL
c. MB member/BSP personnel Secs. 9 and
27, NCBA
4. Compensation and Other Benefits Sec. 18, GBL;
Sec. 30, Corporation Code
5. Meetings Sec. 15, par. 3, GBL
6. Powers of Directors - BSP Circular No. 283 (Series
of 2001)
7. Doctrine of Apparent Authority Philippine
Commercial and International Bank v. Court
of Appeals, 350 SCRA 446 (2001)
8. Prohibited Acts Sec. 55.1, GBL
f. Incorporation Secs. 17 and 46, Corporation Code; Sec. 14, GBL
g. Operation Sec. 6, GBL
i. Authority Required Sec. 6, par. 1, GBL
ii. Monetary Board Determination Sec. 6, par. 2, GBL
iii. Unauthorized Advertisement Sec. 64, GBL

iv. Change in name P.C. Javier & Sons, Inc. v. Court of

Appeals, 462 SCRA 36 (2005)
v. Sanctions for operating without authority Sec. 6, par. 4,
in rel. to Sec. 66, GBL
h. Nature of Banking Business Sec. 2, GBL
i. Vital Role in Economy
1. Subject to reasonable regulation by the State
Central Bank of the Philippines v. Court of
Appeals, 208 SCRA 652 (1992)
2. Strikes and Lockouts Sec. 22, GBL; Article 263(g),
Labor Code
ii. Fiduciary Nature of Banking Business
1. Degree
of
diligence
required
Simex
International (Manila) Inc. v. Court of
Appeals, 183 SCRA 360 (1990); Bank of the
Philippine Islands v. Intermediate Appellate
Court, 206 SCRA 408 (1992)
a. When utmost diligence required
In dealing with accounts of
depositors Philippine Banking
Corporation
v.
Court
of
Appeals, 419 SCRA 487 (2004)
In selection and supervision of
employees

Philippine
Commercial and International
Bank v. Court of Appeals, 350
SCRA 446 (2001)
To be mortgagees in good faith
Cruz
v.
Bancom
Finance
Corporation, 379 SCRA 490
(2002)
In the custody of documents;
integrity of records Heirs of
Eduardo Manlapat v. Court of
Appeals, 459 SCRA 412 (2005)
Exception:
does
not
cover
transactions outside bank deposits
Reyes v. Court of Appeals,
363 SCRA 51 (2001)
Applicability
to
government
financial
institutions

Government Service Insurance

i.

System v. Santiago, 414 SCRA

563 (2003)
b. Liability for negligence
Rules
on
determination
of
negligence Consolidated Bank
and Trust Corporation v. Court
of Appeals, 410 SCRA 562
(2003)
Award
of
actual,
moral,
compensatory
or
temperate
damages Prudential Bank v.
Court of Appeals, 328 SCRA
264 (2000);
Right to recover against erring
employee Pacific Banking
Corporation
v.
Court
of
Appeals, 173 SCRA 102 (1989)
Basic Function of Banks
i. Loan Function
1. BASIC CONCEPTS
a. Grant, Purpose, and Requirement of Loans
Secs. 39 and 40, GBL;
b. Prohibited Transactions Secs. 55.1(c),
55.1(d), and 55.2, GBL
2. SINGLE BORROWERS LIMIT Sec. 35, GBL
3. DOSRI ACCOUNTS Sec. 36, GBL; Sec. 26, NCBA
4. Interest Art. 1956, Civil Code
A. No ceiling Sec. 1-a, 4-a, 45 of Usury Law;
Bacolor v. Bango Filipino Savings and
Mortgage Bank, Dagupan City Branch,
515 SCRA 79 (2007)
B. In the absence of stipulation
C. Escalation clause; when allowable Art.
1308, Civil Code; Philippine National
Bank v. Court of Appeals, 196 SCRA
536 (1991)
D. Floating rates of interest Consolidated
Bank and Trust Corporation (Solid
Bank) v. Court of Appeals, 356 SCRA
671 (2001)
ii. Deposit function
1. NATURE OF DEPOSIT

a. Deposits as Simple Loans Arts. 1953 and

1980, Civil Code; Serrano v. Central
Bank, 96 SCRA 96 (1980)
b. Bank as Debtor
Deposit is voluntary agreement;
Know Your Customer standards
Bank acquires ownership of money
deposited;
obligation
to
pay
amount, but no obligation to return
the same moneyBPI Family
Bank v. Franco, 538 SCRA 184
(2007)
Payment to proper party-depositor
Bank of the Philippine Islands
v. Court of Appeals, 232 SCRA
302 (1994)
Deposits are not preferred credits
Central Bank v. Morfe, 63 SCRA
114 (1975)
Bank has right to compensation
Bank of the Philippine Islands
v. Court of Appeals, 512 SCRA
620 (2007)
c. Banks Duty of Utmost Care Sec. 2, GBL
2. KINDS OF DEPOSIT
A. Demand Deposits Secs. 58-60, NCBA
B. Savings Deposits
C. Negotiable Order of Withdrawal (NOW)
Accounts
D. Time Deposits
E. Foreign Currency Deposits Secs. 2 and 3,
Foreign Currency Denominated Accounts
3. CAPACITY OF DEPOSITORS
A. Minors Sec. 1, Presidential Decree No.
734; Sec. 22, Thrift Banks Act
B. Married Women Sec. 5, Republic Act No.
7192
C. Corporations:
Through
signatories
designated by Board of Directors Sec. 23,
Corporation Code
D. Bank Officers and Employees: Prohibited
from maintaining demand deposits or

current accounts in banking office where

they are assigned xSec. X204, MRB
4. OPENING OF DEPOSIT ACCOUNTS
A. Know Your Customer Standards: At least 3
specimen signatures updated every 5
years, ID optional
B. Prohibitions:
Anonymous
Accounts/Fictitious
Names Sec. 9(a), AMLA
Pseudonyms Art. 178, Revised
Penal Code
Exception: Numbered accounts
Sec. 9(a), AMLA; Sec. 3(1), FCDA
C. Joint Accounts Arts. 485, 1207 and 1208,
Civil Code
5. Interest on Deposits
III. OTHER SERVICES /FUNCTIONS/OPERATIONS Sec. 53, pars. 1-3,
GBL
1. Custodian of Funds, Documents, Valuable Objects
Sec. 53.1, GBL
2. Financial Agent Sec. 53.2, GBL
3. Collection/Payment Agent Sec. 53.3, GBL
4. Financial Adviser Sec. 53.4, GBL
5. Renting Out Safety Deposit Boxes Sec. 53.5, GBL;
CA Agro-Industrial Development Corporation
v. Court of Appeals, 219 SCRA (1993)
6. Issue Guarantees See Sec. 74, General Banking
Act
7. Credit Card Operations
J. Prohibited Acts
I. Insurance business Sec. 54, GBL; Sec. 2, Insurance
Code
II. Outsourcing of bank functions Sec. 55(1)(e), GBL
K. Penalty for Violations Sec. 66, GBL; Sec. 34-37, NCBA; Perez
v. Monetary Board, 20 SCRA 592 (1967)
I. Fine, imprisonment
II. Suspension or removal of director or officer
III. Dissolution of bank
3. Law on Secrecy of Bank Deposits (R.A. No. 1405, as
amended)
a. Purpose (Art. III, Secs. 2-3, 7 and Art. II, Sec. 28, 1987
Constitution)

b. Prohibited Acts (Secs. 2 and 3, Law on Secrecy of Bank

Deposits; Secs. 55.1(b) and 55.4, GBL)
c. Deposits Covered (Sec. 2, Law on Secrecy of Bank
Deposits)
Ejercito vs. Sandiganbayan, 509 SCRA190 (2006)
d. Exceptions
1. Under the Law on Secrecy of Bank
Deposits Sec. 2, Law on Secrecy of Bank
Deposits
Mellon Bank v. Magsino et. al. GR No.
71479, 18 October 1990
2. Under the Anti-Graft and Corrupt Practices
Act (R.A. No. 3019, as amended): In cases
involving unexplained wealth Sec. 8,
Anti-Graft and Corrupt Practices Act
Philippine National Bank v. Gancayco,
15 SCRA 91 (1965); Banco Filipino
Bank v. Purisima, 161 SCRA 576
(1988)
3. Under the Ombudsman Act (R.A. No. 6770)
Sec. 15(8), Ombudsman Act
Marquez v. Desierto, 359 SCRA 772
(2001); Ejercito v. Sandiganbayan,
509 SCRA190 (2006)
4. Under the Plunder Law (R.A. No. 7080, as
amended) Secs. 1(d) and 4, Plunder Law
Ejercito
v.
Sandiganbayan,
509
SCRA190 (2006)
5. Under the AMLA Sec. 11, AMLA
Republic v. Eugenio, 545 SCRA 384
(2008)
6. BSP inquiry into or examination of deposits
or investments with any bank, when the
inquiry or examination is made in the
course of the BSPs periodic or special
examination
7. Independent auditor hired by the bank to
conduct its regular audit, provided that the
examination is for audit purposes only and
the results thereof shall be for the
exclusive use of the bank DOJ Opinion
No. 243 (Series of 1957)
Marquez v. . Desierto, 359 SCRA 772
(2001)

8. Under the PDIC Charter Sec. 8, par.

Eighth, PDIC Charter
9. Under the Human Security Act (R.A. No.
9732) Secs. 27-43, Human Security Act
10. Under the NIRC Sec. 6(F), NIRC
11. Under the Unclaimed Balances Law (R.A.
No. 3936, as amended by P.D. No. 679)
Disclosure to the Treasurer of the
Philippines for dormant deposits for at
least ten (10) years Sec. 2, Unclaimed
Balances Law; DOJ Opinion No. 104 (Series
of 1975)
12. Under the Rules of Court
a. Garnishment
Procedure Sec. 9(c), Rule 39,
1997 Rules of Civil Procedure
Exempt Deposits
1. Foreign currency deposits
Sec. 8, FCDA; But See
Salvacion v. Central Bank
of the Philippines, 278
SCRA 27 (1997)
2. Under the Rules of Court
Sec. 13, Rule 39, 1997 Rules
of Civil Procedure
3. No violation of Law on Secrecy
of Bank Deposits China
Bank v. Ortega, 49 SCRA
356
(1973);
Philippine
Commercial and Industrial
Bank v. Court of Appeals,
193 SCRA 452 (1991)
4. Liability for Release Rizal
Commercial
Banking
Corporation v. De Castro,
168
SCRA
49
(1988);
Philippine Commercial and
Industrial Bank v. Court of
Appeals, 193 SCRA 452
(1991)
b. Preliminary attachment Sec. 10, Rule 57,
1997 Revised Rules of Civil Procedure;
e. Penalty for Violation (Sec. 5, Law on Secrecy of Bank Deposits)

f.

Foreign Currency Deposits

i. Coverage Sec. 8, FCDA; Estrada v. Desierto, 445
SCRA 655 (2004); Salvacion v. Central Bank of the
Philippines, 278 SCRA 27 (1997)
ii. Prohibition Sec. 8, FCDA
iii. Exceptions
1. Upon written consent of the depositor Sec. 8,
FCDA; Intengan v. Court of Appeals, 377
SCRA 63 (2002); China Banking Corporation
v. Court of Appeals, 511 SCRA 110 (2006)
2. Upon order of a competent court in cases of
violation of the AMLA where there is probable
cause of money laundering, except that no court
order is required in specified cases Sec. 11,
AMLA
3. BSP inquiry into or examination of deposits or
investments with any bank, when the inquiry or
examination is made in the course of the BSPs
periodic of special examination of said bank Sec.
11, AMLA
4. Under the PDIC Charter (R.A. No. 3591, as
amended by R. A. No. 7400 and R. A. No. 9576)
Sec. 8, par. Eighth, PDIC Charter
iv. Penalty for Violation Sec. 10, FCDA

4. Philippine Deposit Insurance Corporation Act (R.A. 3591, as

amended)
a. Basic policy (Sec. 1)
b. Concept of insured deposits (Sec. 3)
c. Liability to depositors (Sec. 4)
d. Deposit liabilities required to be insured with PDIC
PDIC vs. CA, G.R. No. 126911, April 30, 2003
PDIC vs. CA, G.R. No. 118917, December 22, 1997
e. Commencement of liability
f. Deposit accounts not entitled to payment (Sec. 2)
g. Extent of liability
h. Determination of insured deposits
i. Calculation of liability (Sec. 3)
i. Per depositor, per capacity rule

ii. Joint accounts

j. Mode of payment
k. Effect of payment of insured deposit
l. Payments of insured deposits as preferred credit under Art.
2244, Civil Code
m. Failure to settle claim of insured depositor
n. Failure of depositor to claim insured deposit
o. Examination of banks and deposit accounts
p. Prohibition against splitting of deposits
q. Prohibition against issuances of TROs, etc.
VI.

Anti-Money Laundering Law (RA 9160, as amended

by RA 9194)
a. Policy of the law (Sec. 2)
b. Covered institutions (Sec. 3a)
c. Obligations of covered institutions (Sec. 9)
d. Covered transactions (Sec. 3b)
e. Suspicious transactions (Sec. 3b1)
f. When is money laundering committed (Sec. 4)
g. Unlawful activities or predicate crimes (Sec. 3i)
h. Anti-Money Laundering Council (AMLC) (Sec. 7)
i. Functions
i. Freezing of monetary instrument or property (Sec. 10)
Republic v. Eugenio, 545 SCRA 384
j. Authority to inquire into bank deposits
k. Jurisdiction (Sec. 5)
l. Prosecution (Sec. 6)
m. Penalties (Sec. 14)
n. Forfeiture (Sec. 12) Rules on Civil Forfeiture (SC Circular A.M. No.
05-11-04-SC)
Republic v. Glasgow Credit and Collection Services, Inc.,
542 SCRA 95

VII.

Securities and Regulations Code (R.A. 8799)

a. State Policy and Purposes (Sec. 2)
b. Powers and Functions of SEC (See. 5)
Baveira v. Paglinawan (GR No. 168380 February 8, 2007)
c. Definition of Securities (Sec. 2)
d. Registration of Securities (Sec. 8)
i. Definition and kind of securities (Sec. 2)
Power homes Unlimited Inc. v. SEC (G.R. No. 164182
February 26, 2008) ; Timeshare Realty Corp. v. Lao (GR
No. 158941 February 11, 2008)
e. Exempt Securities (Sec. 9)

f.
g.
h.
i.
j.

Exempt Transactions (Sec. 10)

Procedure of Registration (Sec. 12)
Rejection and Revocation of Registration of Securities (Sec. 13)
Registration of Pre-need Plans (Sec. 16) .
Tender Offer (Sec. 19)
i. Exemption from mandatory tender offer requirements
ii. How tender offer is made
Cemco Holdings Inc. v. National Life Insurance Co. (G.R.
No. 171815, August 7, 2007)
k. Proxy
Rules
on
Publicly
Listed
Corporations (Sec. 20)
l. Self-Regulatory Organizations (Sec. 39}
m. Unlawful Acts (Sec. 23-27, Sec. 48.1)
Baviera v. Paglinawan (G.R. No. 168380 February 8,
2007); Abacus Securities v. Ampil (G.R. No. 160016
February 27, 2006)
n. Cease and Desist Order (Section 64)
SEC v. Performance Foreign Exchange Corporation (GR
No. 154131 July 20, 2006)
VIII.

Truth in Lending Act (R.A. 3765)

a. Purpose and Applicability
b. Disclosure Requirement
c. Effects of Non-disclosure

DBP v. Arcilla, Jr. (G.R. No. 161397, June

30, 2005)
Consolidated v. CA (246 SCRA 195)
New Sampaguita Builders Construction, Inc. v. PNB (435
SCRA 565)
IX.

Foreign Investments Act (RA

7042)
a. Policy of the Law
b. Definition of Terms
i. Foreign Investment
ii. "Doing business" in the
Philippines
iii. Export Enterprise
iv. Domestic Market Enterprise
c. Registration of Investments of Non-Philippine
Nationals
d. Foreign Investments in Export Enterprises
e. Foreign Investments in Domestic Market
Enterprises
f. Foreign Investment Negative List