Syllabus in Credit Transactions PDF

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ARELLANO UNIVERSITY SCHOOL OF LAW 

THE LAW ON CREDIT TRANSACTIONS 


Atty. Alejandro M. Gozon 
 
SYLLABUS IN CREDIT TRANSACTIONS 
 
I. Introduction 
A. Coverage of the Law on Credit Transactions 
B. Commodatum 
C. Mutuum 
D. Deposit 
■ Voluntary Deposit 
■ Necessary Deposit 
■ Judicial Deposit 
E. Guaranty 
F. Suretyship 
G. Pledge 
H. Mortgage 
■ Real Estate Mortgage 
■ Chattel Mortgage 
I. Antichresis 
J. Concurrence and Preference of Credits 
 
II. Commodatum 
A. Arts. 1933 to 1952 and Art. 1174, Civil Code 
B. Art. 315, Revised Penal Code 
C. Cases: 
■ Catholic Vicar v. CA (G.R. Nos. 80294-95, March 23, 1990, 165 SCRA 515) 
■ Republic v. Bagtas (G.R. No. L-17474, October 25, 1962, 6 SCRA 262) 
 
III. Mutuum 
A. Arts. 1953 to 1960, Civil Code 
B. Arts. 2142 to 2143 (Negotiorum Gestio) and 2154 to 2163 (Solutio Indebiti), New Civil 
Code 
C. Compounding of Interest 
D. Cases: 
■ Siga-an v. Villanueva (G.R. No. 173227, January 20, 2009, 576 SCRA 697) 
■ Guingona v. City Fiscal (G.R. No. L-60033, April 4, 1984, 128 SCRA 577) 
■ New Sampaguita Builders v. PNB (G.R. No. 148325, September 3, 2007, 435 
SCRA 265) 
E. Central Bank Circular No. 799, s. 2013 

 
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ARELLANO UNIVERSITY SCHOOL OF LAW 
THE LAW ON CREDIT TRANSACTIONS 
Atty. Alejandro M. Gozon 
 
■ Legal rate of interest before the issuance of CB Circular No. 799, s. 2013 
a) 12% – Forbearance of money 
b) 6% – Other transactions other than forbearance of money; e.g. See Article 
2176 (Quasi-delict) 
 
IV. Deposit 
A. Arts. 1962 to 2004, Civil Code 
B. Warehouse Receipt Law (Act. No. 2137) 
■ Warehouseman’s Lien 
■ Cases: 
a) PNB v. Noah’s Ark Sugar Refinery (G.R. No. 107243, September 1, 1993, 
226 SCRA 36) 
b) PNB v. Se (G.R. No. 119231, April 18, 1996, 256 SCRA 380) 
c) PNB v. Sayo (G.R. No. 129918, July 9, 1998, 292 SCRA 202) 
C. Rules of Court 
■ Rule 57 (Preliminary Attachment) 
■ Rule 59 (Receivership) 
■ Rule 60 (Replevin) 
■ Rule 62 (Interpleader) 
D. Art. 315, Revised Penal Code 
E. Cases: 
■ Makati Shangri-La v. Harper (G.R. No. 189998, August 29, 2012, 679 SCRA 445) 
■ YHT Realty v. CA (G.R. No. 126780, February 17, 2005, 451 SCRA 638) 
 
V. Guaranty 
A. Arts. 2047 to 2081, Civil Code 
 
VI. Suretyship 
A. Arts. 1207 to 1222, Civil Code 
■ Common provision applicable to guaranty and suretyship: Art. 1403, par. 2(b) 
(Statute of Frauds) and Rule 135 of the Rules of Court 
B. Cases: 
■ Malayan Insurance Co. v. Salas (G.R. No. L-48820, May 25, 1979, 90 SCRA 252) 
■ Diño v. CA (G.R. No. 89775, November 26, 1992, 216 SCRA 9) 
■ Willex Plastic Industries v. CA (G.R. No. 103066, April 25, 1996, 256 SCRA 479) 
■ South City Homes v. BA Finance Corporation (G.R. No. 135462 - December 7, 
2001, 371 SCRA 603) 

 
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ARELLANO UNIVERSITY SCHOOL OF LAW 
THE LAW ON CREDIT TRANSACTIONS 
Atty. Alejandro M. Gozon 
 
 
VII. Pledge 
A. Arts. 2085 to 2092, Civil Code (Provisions Common to Pledge and Mortgage) 
B. Arts. 2093 to 2123, Civil Code 
 
VIII. Mortgage 
A. Arts. 2124 to 2131, Civil Code 
B. Real Estate Mortgage 
■ Ways of Foreclosing Real Estate Mortgage 
a) Judicial Foreclosure of Mortgage 
(1) Rule 68, Rules of Court 
(2) Jurisdiction of the Court (RTC/MTC) 
(a) Sec. 19, par. 3 of BP 129 as amended 
(b) Sec. 33, par. 1 of BP 129 as amended 
b) Extrajudicial Foreclosure of Mortgage (Sec. of Act No. 3135 as amended) 
c) Right of Redemption v. Equity of Redemption – Sec. 47 of RA 3791 
(General Banking Law of 2000) 
■ Cases: 
a) Sps. Sombilon v. Atty. Garay and PNB (G.R. No. 179914, June 16, 2014, 726 
SCRA 397) 
b) Palileo v. Cosio (G.R. No. L-7667, November 28, 1955, 97 Phil. 919) 
C. Chattel Mortgage 
■ Art. 1484, Civil Code 
■ Secs. 2, 4, 5, 6, 7, 8, 13, and 14 of Act No. 1508 as amended 
 
IX. Antichresis 
A. Arts. 2132 to 2139, Civil Code 
 
X. Concurrence and Preference of Credits 
A. Arts. 2036 to 2050, Civil Code 
B. Art. 110 of the Labor Code (PD 442 as amended) 
C. Cases: 
■ DBP v. NLRC (G.R. Nos. 100264-81, January 29, 1993, 236 SCRA 117) 
■ Republic v. Peralta (G.R. No. L-56568, May 20, 1987, 150 SCRA 37) 
■ Philippine Savings Bank v. Lantin (G.R. No. L-33929. September 2, 1983, 209 
Phil. 382) 

 
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ARELLANO UNIVERSITY SCHOOL OF LAW 
THE LAW ON CREDIT TRANSACTIONS 
Atty. Alejandro M. Gozon 
 
■ AFP General Insurance v. Molino (G.R. No. 151133, June 30, 2008, 556 SCRA 
630) 
 
References: 
● Volume V, Civil Code of the Philippines by Tolentino 
● Volume V, Civil Code of the Philippines by Paras 
● The Law on Credit Transactions by de Leon and de Leon 
● Evidence: The Bar Lecture Series (2013 Edition) by Riano 
● Labor Code of the Philippines by Ungos, Jr. and Ungos, III 

 
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