ANGELES UNIVERSITY FOUNDATION

School of Law
CREDIT TRANSACTIONS
2nd Semester, AY 2019-2020
Prof. R. R. Dujunco

Grading System:

Recitation 40%
Midterms 30%
Finals 30%

Text: Hector de Leon, latest edition.

I. LOAN (General Provisions, Articles 1933-1934)

• Tolentino v. Gonzales Sy Chiam, G.R. No. 26085, August 12, 1927

• Saura Import & Export Co., Inc. v. Development Bank of the Phil., G.R. No. L-24968,
April 27, 1972
• Garcia v. Thio, 518 SCRA 433, 2007

A. Commodatum (Articles 1935-1952)

• Republic v. Bagtas, G.R. No. L-17474, October 25, 1962

• Republic v. Court of Appeals, G.R. No. L-46145, November 26, 1986
• Pajuyo vs. Court of Appeals, G.R. No. 146364, June 03, 2004
• Quintos v. Beck, G.R. No. 46240, November 3, 1939
• De los Santos v. Jarra, G.R. No. 4150, February 10, 1910
• Manzano v. Perez, G.R. No. 112485, August 9, 2001
• Producers Bank of the Philippines v. Court of Appeals, G.R. No. 115324, February 19,
2003

B. Simple Loan (Articles 1953-1961)

• BPI Investment Corporation v. Court of Appeals, G.R. No. 133632, February 15, 2002
• Naguiat v. Court of Appeals, G.R. No. 118375, October 3, 2003
• Cebu International Finance Corporation v. Court of Appeals, G.R. No. 123031, October
12, 1999
• BPI Family Bank v. Franco, 538 SCRA 184, 2007
• People v. Puig and Porras, 563 SCRA 564, 2008
• BPI v. Spouses Yu, 610 SCRA 412, 2010
• Pantaleon v. American Express, 629 SCRA 276, 2010

C. Interest and The Usury Law (Act No. 2655, as amended)

• De la Paz v. L&J Development Company, 734 SCRA 364, 2014

• Jadenil v. Salas, G.R. No. 47878, July 24, 1942
• Cu Unjieng e Hijos v. Mabalacat Sugar, Co., G.R. No. 23644, October 4, 1930
• GSIS v. Court of Appeals, G.R. No. L-52478, October 30, 1986
• Ligutan v. Court of Appeals, G.R. No. 138677, February 12, 2002
• Siga-an v. Villanueva, 576 SCRA 696, 2009
• Tan v. Court of Appeals, G.R. No. 116285, October 19, 2001

Page 1 of 5
 • Eastern Shipping Lines v. Court of Appeals, 234 SCRA 78, 1994
• Nacar v. Gallery Frames, 703 SCRA 439, 2013
• Abella v. Abella, 762 SCRA 221, 2015
• First Fil-Sin Lending Corp. v. Padillo, G.R. No.160533, January 12, 2005
• Integrated Realty Corp. v. PNB, G.R. No. 60705, June 28, 1989

• Bataan Seedling Association, Inc. v. Republic of the Philippines, G.R. No. 141009, July 2,
2002
• Catungal v. Hao, G.R. No. 134972, March 22, 2001

• Banco Filipino v. Court of Appeals, G.R. No. 129227, May 30, 2000

• Consolidated Bank & Trust Co. v. Court of Appeals, G.R. No. 114286, April 19, 2001
• New Sampaguita Builders v. PNB, G.R. No. 148753, 2004
• Mendoza v. Court of Appeals, G.R. 116710, June 25, 2001

• First Metro Investment Corp. v. Este del Sol Mountain, G.R. No. 141811, November 15,
2011

• Herrera v. Petrophil Corporation, 146 SCRA 385, 1986

• Solidbank v. Permanent Homes G.R. No. 171925, July 23, 2010
• Silos v. PNB G.R. No. 181045, July 02, 2014
• Imperial v. Jaucian G.R. No. 149004, April 14, 2004
• Advocates for TILA v. BSMB G.R. No. 192986, January 15, 2013

II. DEPOSIT (Articles 1962 – 2009, 538, 559, 586, 2104)

• Bank of the Philippine Islands v. IAC, G.R. No. L-66826, August 19, 1988
• Roman Catholic Bishop v. de la Pena, G.R. No. 6913, November 21, 1913
• CA Agro-Industrial Dev. Corp. v. Court of Appeals, G.R. No. 90027, March 3, 1993
• Javellana v. Lim, G.R. No. 4015, August 24, 1908
• Chan v. Maceda, Jr., G.R. No. 142591, April 30, 2003
• YHT Realty Corp. v. Court of Appeals, G.R. No. 126780, February 17, 2005
• Makati Shangri-la v. Harper, 679 SCRA 444, 2012
• Durban Apartments v. Pioneer Insurance, 639 SCRA 441, 2011
• Triple-V Food Services, Inc. v. Filipino Merchants Insurance Corp., G.R. No. 160544,
February 25, 2005

III. GUARANTY AND SURETYSHIP (Articles 2047-2084)

• Ong v. PCIB, G.R. No.160466, January 17, 2005

• International Finance Corp. v. Imperial Textile Mills, G.R. No.160324, November 15, 2005

• E. Zobel, Inc. v. Court of Appeals, G.R. No. 113931, May 6, 1998

• Tacao v. Court of Appeals, G.R. No. 127405, October 4, 2000
• Astro Electronics Corp. v. Phil. Export and Foreign Loan Guarantee Corporation, G.R.
No. 136729, September 23, 2003
• Spouses Toh v. Solidbank, G.R. No. 154183, August 7, 2003
• Filipinas Textile Mills v. Court of Appeals, G.R. No. 119800, November 12, 2003
• Severino v. Severino, G.R. No. 34642, September 24, 1931
• Willex Plastic Industries Corp. v. Court of Appeals, G.R. No. 103066, April 25, 1996

Page 2 of 5
 • Diño v. Court of Appeals, G.R. No. 89775, November 26, 1992
• Atok Finance Corporation v. Court of Appeals, G.R. No. 80078, May 18, 1993
• Tañedo v. Allied Banking Corp., G.R. No. 136603, January 18, 2002

• Southern Motors, Inc. v. Barbosa, G.R. No. L-9306, May 25, 1956
• Baylon v. Court of Appeals, G.R. No. 109941, August 17, 1999
• Wise & Co. Inc. v. Tanglao, G.R. No. 42518, August 29, 1936
• Syquia v. Jacinto, G.R. No. 41320, November 9, 1934
• Arroyo v. Jungsay, G.R. No. 10168, July 22, 1916
• Luzon Steel Corp v. Sia, G.R. No. L-26449, May 15, 1969
• Towers Assurance Corp. v. Ororama Supermart, G.R. No. L-45848, November 9, 1977

• Cochingyan, Jr. v. R&B Surety and Insurance Co., G.R. No. L-47369, June 30, 1987
• Mercantile Insurance Co. v. Ysmael, Jr., & Co. Inc., G.R. No. 43862, January 13, 1989

• PNB v. Court of Appeals, G.R. No. L-30937, January 21, 1987

• People’s Bank and Trust Co. v. Tambunting, G.R. No. L-29666, October 29, 1971
• PNB v. Manila Surety & Fidelity Co., G.R. No. L-20567, July 30, 1965
• Prudencio v. Court of Appeals, G.R. No. L-34539, July 14, 1986
• Security Bank and Trust Co. v. Cuenca, G.R. No. 138544, October 3, 2000

IV. PLEDGE, MORTGAGE AND ANTICHRESIS (Articles 2085 – 2141)

A. Personal Property and Security Act (R.A. No. 11057 or “PPSA”)

*provisions under this subsection pertain to the PPSA unless otherwise stated

1. Title: Strengthening the Secured Transactions Legal Framework Involving Personal

Property
2. Declaration of policy – Sec. 2
3. Effectivity of the PPSA – Secs. 62, 67 and 68
4. Effect of the PPSA on the New Civil Code and special laws – Sec. 66
5. Scope of the PPSA – Sec. 4
a. In relation to Arts. 416 and 417, NCC
b. Other personal property in PPSA: Secs. 3(b)(3), 3(c)(3), 3(j), 7, 8(b), 12, 14(a),
18(e), 18(f), 23(b), 23(c), 24, and 25
6. Nature of a security interest under PPSA
a. Continuity – Sec. 9
b. Collateral description – Sec. 7
c. Right to proceeds and commingled funds and money – Sec. 8
d. Property mortgaged subject to fulfillment of obligation – Art. 2126, NCC
7. Security interest and parties involved
a. Definition of security interest – Sec. 3(j)
b. Grantor – Sec. 3(c)
c. Secured Creditor – Sec. 3(i)
8. Creation of security interest – Sec. 5
9. Form of security agreement – Secs. 6, 3(k); Arts. 1307 and 1157, NCC
10. Collateral described – Sec. 7
11. Perfection of security interest – Sec. 11
12. Means of perfection and change in means of perfection – Secs. 12, 15
a. In relation to Art. 2140 and 2125, NCC
13. Perfection by:
a. Control – Secs. 13, 3(b)(1-3)
b. Possession – Sec. 12; Arts. 523 and 2093, NCC

Page 3 of 5
 c. Registration – Sec. 12
14. Assignment of security interest – Sec. 16
15. Disposition of collateral and perfection of interest – Secs. 9, 14, 21
16. Priority of security interest and the importance of registration in the electronic registry of
the Land Registration Authority (LRA) – Secs. 17, 26 to 44
17. Priority of security interest
a. Perfection of control – Sec. 18
b. Negotiable instruments and documents – Sec. 19
c. Operation of law – Secs. 20-22 in relation to Arts. 2241, 2243 and 2247, NCC
d. Purchase money security interest – Secs. 23, 24, and 25
18. Enforcement of security
a. Repossession without the need of judicial process
i. Expedited repossession of collateral – Sec. 47(a) and (b)
ii. Recovery in special cases – Sec. 48
b. Repossession through a judicial process –Secs. 47(c) and 63
c. Recovery without judicial process Sec. 48
d. Disposition of collateral – Secs. 49-52
e. Retention of collateral by secured creditor – Sec. 54
f. Rights related to enforcement
i. Right of redemption – Sec. 45
ii. Right of higher ranking secured creditor – Sec. 46
19. Transitional Provisions – Secs. 55-59

• Manila Banking Corporation v. Teodoro, G.R. No. 53955, January 13, 1989
• Yao Chu v. CA, G.R. No. L-78519, September 26, 1989
• Gatioan v. Gaffud, G.R. No. L-21953, March 28, 1969
• Citibank N.A. v. Sabeniano, G.R. No. 156132, October 12, 2006
• Medida v. Court of Appeals, G.R. No. 98334, May 8, 1992
• Spouses Paray v. Rodriguez, G.R. No. 132287, January 24, 2006

B. Common Provisions (Articles 2085-2092)

• Arenas v. Raymundo, G.R. No. 5741, March 13, 1911

• Rural Bank of Caloocan v. Court of Appeals, G.R. No. L-32116, April 21, 1981
• A. Francisco Realty v. Court of Appeals, G.R. No. 125055, October 30, 1998
• Spouses Uy Tong v. Court of Appeals, G.R. No. L-77465, May 21, 1988
• Dayrit v. Court of Appeals, G.R. No. L-29388, December 28, 1970
• Central Bank v. Court of Appeals, G.R. No. L-45710, October 3, 1985
• Spouses Belo v. PNB, G.R. No. 134330, March 1, 2001

C. Pledge (Articles 2093 – 2123) and Chattel Mortgage (Act No. 1508, NCC Articles 2140 –
2141)
- See amendments under the Personal Property Security Act.

D. Mortgage (Articles 2124 – 2131)

• Isaguirre v. de Lara, G.R. No. 138053, May 31, 2000

• Samanilla v. Cajucom, G.R. No. L-13683, March 28, 1960
• Mobil Oil Phils. v. Diocares, G.R. No. L-26371, September 30, 1969
• People’s Bank & Trust Co. v. Dahican Lumber Company, G.R. No. L-17500, May 16,
1967
• Ajax Marketing and Development Corporation v. Court of Appeals, G.R. No. 118585,
September 14, 1995
• Mojica v. Court of Appeals, G.R. No. 94247, September 11, 1991
• Santiago v. Pioneer Savings and Loan Bank, G.R. No. 77502, January 15, 1988

Page 4 of 5
 • Prudential Bank v. Alviar, G.R. No. 150197, July 28, 2005
• Caltex v. Intermediate Appellate Court, G.R. No. 74730, August 25, 1989
• Pineda v. Court of Appeals, G.R. No. 114172, August 25, 2003
• Star Two Inc. v. Paper City Corp., 692 SCRA 438
• Garcia v. Villar, 675 SCRA 80
• Spouses Yap v. Spouses Dy, 654 SCRA 593
• Cua Lai Chu v. Lacqui and PBCom, 612 SCRA 227
• BPI v. Golden Power Diesel Sales Center, 639 SCRA 405

Read also Act 3135 and Rule 68 of the Revised Rules of Civil Procedure

E. Antichresis (Articles 2132 – 2139)

• Pando v. Gimenez, G.R. No. 31816, February 15, 1930

V. CONCURRENCE AND PREFERENCE OF CREDITS (Articles 2236 – 2251)

*Memorize 2241 up to 2244.

• Yun Chu v. CA, 177 SCRA 793

• Manila Banking Corporation v. Teodoro Jr. 169 SCRA 95
• PCI Leasing and Finance Inc. v. Trojan Metal, 638 SCRA 615
• Citibank N.A. and Investors Finance Corp. v. Sabeniano, 504 SCRA 378
• J.L. Bernardo Construction v. CA, 324 SCRA 34
• Cordova v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, 526 SCRA 300

VI. THE FINANCIAL REHABILITATION AND INSOLVENCY ACT (“FRIA”) OF 2010

A. Definition of Insolvency, Rehabilitation, Claims, Debtors, Liabilities, Lien – Sec. 4

B. Nature of proceedings, voluntary and involuntary – Secs. 3, 12, and 13
C. Issuance of a commencement order – Secs. 15, 16, and 21
D. Stay or suspension order – Secs. 16 to 19
E. Rehabilitation Plan – Secs. 62-73
F. Rehabilitation Receiver – Secs. 28-30, 17, 21,24, 31, 32, 36, 44
G. Hearings – Secs. 45, 22 to 24
H. Management Committee – Secs 36-38
I. Creditor’s Committee – Secs 42-43
J. Actions on the Petition – Secs. 22-27
K. Various Claims – Secs 4, 16, 44 to 46, 60, 61, 19, 62, 16, 56, 133, 23
L. Contracts – Secs. 57 to 59
M. Termination of Proceedings – Secs. 74 and 75
N. Pre-negotiated Rehabilitation – Secs 76-82 and 92
O. Out of court rehabilitation – Secs. 83-89
P. Liquidation – Secs. 90-135
Q. Ancillary proceedings – Secs. 137-142

• Viva Shipping Lines v. Keppel Philippines Mining, G.R. No. 177382, 2016
• RCBC v. IAC, 320 SCRA 279
• Town and Country Enterprises Inc. v. Quisumbing, 682 SCRA 128
• Metropolitan Waterworks v. Daway and Maynilad, 432 SCRA 559
• Philippine Assets Growth Two Inc. and Planters Development Bank v. Fastech
Synergy Phils., G.R. No. 206528, 2016
• Pryce Corporation v. China Banking Corporation, 716 SCRA 207
• Consuelo Metal Corporation v. Planters Development Bank and Maningas, 555
SCRA 465

Page 5 of 5