PEOPLE vs. CONCEPCION, 44 Phil.

126FACTS:
Venancio Concepcion, President of the Philippine National Bank and a member of theBoard thereof,
authorized an extension of credit in favor of "Puno y Concepcion, S. en C. to themanager of the
Aparri branch of the Philippine National Bank. "Puno y Concepcion, S. en C."was a co-
partnership where Concepcion is a partner. Subsequently, Concepcion was charged andfound guilty in
the Court of First Instance of Cagayan with violation of section 35 of Act
No.2 7 4 7 . S e c t i o n 3 5 o f A c t N o . 2 7 4 7 p r o v i d e s t h a t t h e N a t i o n a l B a n k s
h a l l n o t , d i r e c t l y o r indirectly, grant loans to any of the members of the board of directors of
the bank nor to agentsof the branch banks. Counsel for the defense argue that the
documents of record do not provethat authority to make a loan was given, but only show the
concession of a credit. They averredthat the granting of a credit to the co-partnership "Puno y
Concepcion, S. en C." by VenancioConcepcion, President of the Philippine National Bank,
is not a "loan" within the meaning of section 35 of Act No. 2747.
ISSUE:
Whether or not the granting of a credit of P300,000 to the co-partnership
" P u n o y Concepcion, S. en C." by Venancio Concepcion, President of the Philippine
National Bank, a"loan" within the meaning of section 35 of Act No. 2747.
HELD:
The Supreme Court ruled in the affirmative. The "credit" of an individual means hisability
to borrow money by virtue of the confidence or trust reposed by a lender that he will paywhat he may
promise. A "loan" means the delivery by one party and the receipt by the other party of a
given sum of money, upon an agreement, express or implied, to repay the sum loaned,with or without
interest. The concession of a "credit" necessarily involves the granting of "loans"up to the limit of the
amount fixed in the "credit,"