WESTERN LEYTE COLLEGE

SCHOOL OF LAW
COURSE OUTLINE
CREDIT TRANSACTIONS
I. General Introduction
II. General Provisions on Loans
A. Definition & characteristics of contract of loan
B. Commodatum
1. Nature of Commodatum
2. Obligations of the Bailee
3. Obligations of the Bailor
4. Relevant Jurisprudence
(a) Colito T. Pajuyo vs. CA, GR No. 146364, June 3, 2004
(b)Catholic Vicar Apostolic of Mt. Province vs. CA, GR No. 80294,
March 23, 1990
C. Simple Loan or Mutuum
1. Nature of Loan/Mutuum
2. Obligations of parties
3. Interests
4. Usurious contracts
5. Relevant Jurisprudence
(a) BPI Investment Corporation vs. CA, GR No. 133632, Feb 15, 2002
(b) Producers Bank of the Philippines vs. CA, GR No. 115324, Feb 19,
2003
(c) Carolyn Garcia vs. Rica Marie Thio, GR No. 154878, March 16,
2007
(d) Evelyn Sangrador vs. Francisco Valderrama, GR No. 79552,
November 29, 1988
(e) C.F. SHARP & CO., INC. vs. Northwest Airlines, Inc. G.R. No.
133498. April 18, 2002
(f) Pacita Reformina et.al vs. Tomol, Jr., et.al., GR. No. L-59096, Oct
11, 1985
(g) Wifredo Verdejo vs. Court of Appeals, et. al., GR No. 77735,
January 29, 1988
(h) Eastern Shipping Lines vs. CA et.al., GR No. 97412, July 12, 1994
(i) Ponciano Almeda vs. CA, G.R No. 113412, April 17, 1996
(j) Spouses Mariano and Gilda Florendo vs. CA, Land Bank of the Phil,
GR No. 101771, December 17, 1996
(k) Sps. Felimon and Maria Barrera vs. Emiliano and ma. Concepcion
Lorenzo, GR No. 130994, September 18, 2002
III. Deposit
A. Deposit in general and its different types
B. Voluntary deposit
1. General Provisions
2. Obligations of the depositary
3. Obligations of the depositor
C. Necessary Deposit
D. Judicial Deposit
E. Relevant Jurisprudence:
(1) CA Agro-industrial Development Corporation vs. Court of Appeals,
et.al, GR No. 90027, March 3, 1993
(2)Luzan Sia vs. CA, et.al., GR No. 102970, May 13, 1993

(3) Bank of the Philippine Islands vs. Intermediate Appellate Court, G.R.
No. L-66826, August 19, 1988
(4) Consolidated Bank and Trust Corp. vs. CA, G.R. No. 138569,
September 11, 2003
(5) Raul Sesbreo vs.Hon. Court of Appeals, Delta Motors Corporation
and Pilipinas Bank, G.R. No. 89252 May 24, 1993
IV. Guaranty
A. Nature and extent of guaranty
B. Effects of guaranty
C. Extinguishment of guaranty
D. Relevant jurisprudence:
1. The Texas Company (Phil) Inc vs. Tomas Alonzo, GR No. L-47495,
August 14, 1941
2. Goldenrod vs. Honorable Court of Appeals and Pathfinder Holdings,
G.R. No. 127232, September 28, 2001
3. Salvador P. Escao, et al. vs. Rafael Ortigas, Jr., G.R. No. 151953, June
29, 2007
4. Jacinto Uy Dino, et al. vs. CA, et.al., GR No. 89775, November 26, 1992
5. Atok Finance Corporation vs. CA, et.al., GR No. 80078, May 18, 1993
6. Fortune Motors (Phils) Corporation, et.al vs. CA, et al , G.R. No. 112191.
February 7, 1997
7. Rizal Commercial Banking Corporation vs. Hon. Jose Arro, GR No. L49401,
July 30, 1982
8. Pacific Banking Corporation vs. IAC, GR No. 72275, November 13, 1991
9. Zenith Insurance Corporation vs. CA, G.R. No. L-57957, December 29,
1982
10. Republic of the Philippines vs. Palfox Lumber Co., Inc., et. al., GR No.
L-26473,
February 29, 1972
11. Prudential Bank vs. Intermediate Appellate Court, G.R. No. 74886,
December 8,1992
12. Pacionaria C. Baylon vs. Court of Appeals, G.R. No. 109941, August
17, 1999
13. The Imperial Insurance, Inc. vs. Walfrido Delos Angeles, et al., GR No.
L- 28030,
January 18, 1982
14. Manila Surety and Fidelity, Inc vs. Batu Construction and Company ,
et al, G.R. No. L-9353 May 21, 1957
15. Manila Surety and Fidelity Company, Inc. vs. Noemi Almeda, et.al., GR
No. 27249,
July 31, 1970
16. Antonio Garcia, Jr. vs. CA, et.al., GR No. 80201, November 20, 1990
17. Peoples Bank and Trust Co. vs. Jose Mari Tambunting, GR No. L29666,
October 29, 1971
18. Baldomero Inciong vs. Court of Appeals, G.R. No. 96405, June 26,
1996
19. Sps. Vicky Tan Toh and Luis Toh vs. Solid Bank Corp., G.R. No. 154183,
August 7, 2003
20. Tomas Ang vs. Associated Bank, et al., G.R. No. 146511, September 5,
2007
V. Pledge, Mortgage and Antichresis
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A. Provisions common to pledge and mortgage

1. Definition and characteristics of pledge
2. Kind of pledge
3. Pledge distinguished from mortgage
B. Pledge
1. Subject matter of pledge
2. Rights and Obligations of pledgee and pledgor
3. Legal pledges
4. Pledge by operation of law
5. Relevant jurisprudence:
(a) Philippine National Bank vs CA, GR No. L-34404, June 25, 1980
(b) Maria Guanzon vs. Hon Manuel Argel, GR No. L-27706, June 16,
1970
(c) Benito Lopez vs. CA, GR No. L-33157, June 29, 1982
(d) Filipinas Marble Corporation vs. IAC, GR No. L-68010, May 30, 1986
(e) GSIS vs. CA, GR No. L-40824, February 23, 1989
(f) Diosdado Yuliongsiu vs. PNB, (Cebu Branch) GR No. L-19227,
February 17, 1968
(g) Caltex Philippines, Inc. vs. CA, GR No. 97753, August 10, 1992
(h) Integrated Realty Corporation vs. PNB, GR No. L- 60705, June 28,
2009
(i) Victoria Vau Chu vs. CA, GR No. L-78519, September 26, 1989
(j) Uy Tong vs. Court of Appeals, G.R. No. 77465, May 21, 1988
(k) Insular Life Savings and Trust Co. vs. Sps. Felix Mateo and Trinidad
Runes,
G.R. No. 152530, August 12, 2004
(l) Imelda A. Nakpil vs. Intermediate Appellate Court, G.R. No. 74449,
August 20, 1993
(m) Francisco Realty and Dev. Corp. vs. Court of Appeals, G.R. No.
125055, October 30, 1998
(n)Honesto Ong vs. Intermediate Appellate Court, G.R. No. 74073,
September 13, 1991
(o) Roberto C. Sicam, et al. vs. Lulu v. Jorge, et al., G.R. No. 159617,
August 8, 2007
(p)Lim Tay vs. Court of Appeals, G.R. No. 126891, August 5, 1998
(q)Insular Life Assurance Company vs. Robert Young, G.R. No. 140964,
January 16, 2002
(r) Clementino Imperial vs. Mariano F. Santiago, AM P-01-1449,
February 21, 2003
C.
1.
2.
3.
4.

Mortgage
General provisions
Pre-requisites of a valid mortgage/effects of mortgage
Prohibition against appropriation by creditor the thing mortgaged
Relevant Jurisprudence:
(a) Manuel Medida vs. CA, GR No. 98334, May 8, 1992
(b)Rural Bank of Bombon (Camarines Sur), Inc. vs. CA, GR No. 95703,
August 3, 1992
(c) Oscar D. Ramos vs. CA, GR No. 42108, December 29, 1989
(d)Central Bank of the Philippines vs. CA, GR No. L-45710, October 3,
1985
(e) Nestor Centeno, et.al. vs. CA, GR No. L-40105, November 11, 1985
(f) Dionesio Mojica vs. CA, GR No. 94247, September 11, 1991
(g) PNB vs. International Corporate bank, GR No. 86679, July 23,1991
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(h) Philippine Bank of Commerce vs. De Vera, GR No. L-18816, December

29, 1962
(i) Rural Bank of Sariaya, Inc. vs. Yacon, GR L-78011, July 5, 1989
(j) Tomasa Vda. De Jacob vs. CA, GR No. 88602, April 6, 1990
(k) Industrial Finance Corporation vs. Apostol, GR No. L-35453, September
15,1989
(l) Apolonia Ll. Ocampo vs. Fidela Ll. Ocampo, G.R. No. 150707, April 14,
2004
(m)Mamerta Vda. De Jayme, et al. vs. Court of Appeals, G.R. No. 128669,
October 4, 2002
(n) Edilberto Cruz vs. Bancom Finance Corp., G.R. No. 147788, March 19,
2002
(o) Guillermo Adriano vs. Romulo Pangilinan, G.R. No. 137471, January 16,
2002
(p) Flordeliza H. Cabuhat vs. The Honorable Court of Appeals, G.R. No.
122425,
September 28, 2001
(q)Enrique M. Belo vs. Phil. National Bank, G.R. No. 134330, March 1, 2001
(r) Lillian N. Mercado, et al. vs. Allied Banking Corp., G.R. No. 171460, July
27, 2007
(s) Lourdes S. Arrofo vs. Pedro Quio, G.R. No. 145794, January 26, 2005
(t) Jose T. Abad vs. Sps. Vivian and Ceasar Guimba, G.R. No. 157002, July
29, 2005
(u)Hortensia L. Starke vs. Philippine Sugar Commission, G.R. No. 85997,
August 19, 1992
(v) Phil. National Bank vs. Rustico De Los Reyes, G.R. No. 46898-99,
November 28, 1989
(w) Servicewide Specialists vs. Court of Appeals, G.R. No. 116363,
December 10, 1999
(x) Josefina B. Cenas vs. Antonio P. Santos, G.R. No. 49576, November 21,
1991
(y) Jose B. Tiongco vs. Philippine Veterans Bank, G.R. No. 82782, August 5,
1992
(z) Sps. Antonio Pailano, Jr. vs. Court of Appeals, G.R. No. 99333, June 28,
1993
(aa) Phil. National Bank vs. RBL Enterprises, Inc., G.R. No. 149569, May
28, 2004
(bb) Luis Castro, Jr. vs. Court of Appeals, G.R. No. 97401, December 6,
1995
(cc) RCBC vs. Courts of Appeals, G.R. Nos. 128833, 128834 and 128866,
April 20, 1998
(dd) Reynaldo K. Litonjua vs. L & R Corporation, G.R. No. 130722,
December 9, 1999
(ee) Sps. Samatra vs. Vda. De Parinas, G.R. No. 142958, April 24, 2002
(ff)Ruby Gardner vs. CA, GR No. L-31340, November 29, 1977
D. Foreclosure of Real Estate Mortgage
a) Kinds of foreclosure
b) Requirements/ Procedure
c) Redemption
d) Writ of Possession
E. Chattel Mortgage
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F. Antichresis
VI. Concurrence and Preference of Credits
A.
B.
C.
D.

General Provisions
Classification of credits
Order of preference of credits
Jurisprudence