SYLLABUS ON

CREDIT TRANSACTIONS

S.Y. 2017 – 2018

2nd Semester

Saturday, 2:00 PM – 5:00 PM

Prepared by:
I. Introduction
The Concept of Credit
A. Credit, Debt and Security
B. Credit and Credit Transactions Defined ATTY. CYRUS VICTOR T. SUALOG, Ll.M.
Republic Act No. 3765, Sec. 3. (2)
People v. Concepcion, G.R. No. L-19190, November 29, 1922, 44 Phil 126.
C. Commercial Credit Transactions
Code of Commerce, Arts. 1 to 3

II. Loan, In General

The Concept of Loan
A. General Concepts - Art. 1933, Art. 1305
1. Obligation to Deliver - Art. 1934
Garcia v. Thio, G.R. No. 154878, March 16, 2007, 518 SCRA 433.
2. Object of a Loan - Art. 1933, Art. 418
3. Consideration of a Loan - Art. 1933
4. Obligation to Return or Pay - Art. 1933, Art. 1232, Art. 1233
B. Contract To Loan - Art. 1934

Saura Import and Export Co. Inc. v. Development Bank of the Philippines, G.R. No. L-24968, April 27,
1972, 44 SCRA 445.
BPI Investment Corporation v. Court of Appeals and ALS Management & Development Corporation,
G.R. No. 133632, February 15, 2002, 377 SCRA 117.
Pantaleon v. American Express International, Inc., G.R. No. 174269, August 25, 2010, 629 SCRA 276.

III. Commodatum
A. General Concepts - Art. 1933, Art. 1935, Art. 1939
1. Consideration in Commodatum
2. Object of Commodatum - Art. 1937, Art. 1936
Producers Bank of the Philippines v. Court of Appeals, G.R. No. 115324, February 19, 2003, 397
SCRA 651.
B. Parties to a Commodatum
1. Ownership by Bailor - Art. 1938, Art. 1933
2. Use by Bailee - Art. 1935, Art. 1940, Art. 1939
3. Solidary Liability of Bailees - Art. 1945
C. Liability for Expenses and Damages
1. Ordinary Expenses - Art. 1933, Art. 1935, Art. 1941, Art. 1943
Pajuyo v. Court of Appeals, G.R. No. 146364, June 3, 2004, 430 SCRA 492.
2. Extraordinary Expenses - Art. 1949
3. Other Expenses - Art. 1950
4. Abandonment by Bailor - Art. 1952
5. Right of Retention by Bailee - Art. 1944, Art. 1951
D. Liability for Loss - Art. 1933, Art. 1942
Republic v. Bagtas, G.R. No. L-17474, October 25, 1962, 6 SCRA 262.
E. Obligation to Return - Art. 1933, Art. 1946 to 1948
Quintos v. Beck, G.R. No. L-46240, November 3, 1939, 69 Phil 108.

III. Mutuum (Simple Loan)

A. General Concepts - Art. 1933, Art. 1953, Art. 1954, Art. 1980; Act No. 2137, Sec. 58 "Fungible goods"
People v. Puig and Porras, G.R. No. 173654-765, August 28, 2008, 563 SCRA 564.
BPI Family Bank v. Franco, G.R. No. 123498, November 23, 2007, 538 SCRA 184.

B. Obligation to Pay - Art. 1955, Art. 1249, Art. 1250

C. Interest
1. Conventional Interest
a. General Concept
Art. 1933, Art. 1956, Art. 1253 , Art. 1958, Art. 1960, Art. 2154, and Art. 1423
b. Monetary or Regular Interest
RCBC v. Alfa RTW Manufacturing Corp., et al., G.R. No. 133877, November 14, 2001
Frias v. San Diego-Sison, G.R. No. 155223, April 3, 2007, 520 SCRA 244.
c. Interest Rate - Act No. 2655, Sec. 1.; Bangko Sentral ng Pilipinas Circular No. 799, series of 2013
Estores v. Spouses Supangan, G.R. No. 175139, April 18, 2012.
d. Interest on Interest - Art. 1959, and Art. 2212
e. Escalation Clauses - Act No. 2655, Sec. 7 and Sec. 7-a
Spouses Juico v. China Banking Corporation, G.R. No. 187678, April 10, 2013.
Spouses Silos v. Philippine National Bank, G.R. No. 181045, July 2, 2014.
2. Compensatory, Penalty or Indemnity Interest
Art. 1169, Art. 1226, Art. 2209, Art. 2210, Art. 2213, Art. 2226, Art. 2227
Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412, July 12, 1994, 234 SCRA 78.
Nacar v. Gallery Frames, G.R. No. 189871, August 13, 2013.
Siga-an v. Villanueva, G.R. No. 173227, January 20, 2009, 576 SCRA 696.
Ligutan v. Court of Appeals, G.R. No. 138677, February 12, 2002, 376 SCRA 560.
3. Finance Charges
R. A. No. 3765( "Truth in Lending Act."), Sec. 4 and Sec. 6
United Coconut Planters Bank v. Samuel and Beluso, G.R. No. 159912, August 17, 2007, 530 SCRA
567.
4. Usury
a. General Concepts - Art. 1175, Art. 1957, Art. 1961
Act No. 2655 (An Act Fixing Rates of Interest upon Loans and Declaring the Effect of Receiving or
Taking Usurious Rates and for Other Purposes) Sec. 1, Sec. 1-a, Sec. 4-a, Sec. 4-b, Sec. 5, Sec. 9-a
Central Bank Circular No. 905, Series of 1982, Sec. 1
b. Usurious Acts - Act No. 2655, Sec. 2 to 4
c. Remedies - Art. 1413; Act No. 2655, Sec. 6 to Sec. 10

IV. Deposit
The Concept of Deposit - Art. 1962, Art. 1964, Art. 1967

Voluntary Deposit
A. General Concepts - Art. 1963, Art. 1968, Art. 1969, Art. 1965, Art. 1966, Art. 1995
Bank of the Philippine Islands v. The Intermediate Appellate Court and Zshornack, G.R. No. L-66826
August 19, 1988, 164 SCRA 630.
 Triple-V Food Services, Inc. v. Filipino Merchants Insurance Company, Inc., G.R. No. 160544,
February 21, 2005.
B. Obligation to Safekeep
1. Way of the Deposit - Art. 1974 to 1978, Art. 1981, Art. 1982
CA Agro-Industrial Development Corporation v. Court of Appeals and Security Bank and Trust
Company, G.R. No. 90027, March 3, 1993, 219 SCRA 426.
The Roman Catholic Bishop of Jaro v. De La Pena, G.R. No. L-6913, November 21, 1913, 26 Phil 144.
2. Liability for Loss and Damage - Art. 1972, Art. 1973, Art. 1977, Art. 1978, Art. 1981, Art. 1979, Art.
1990, Art. 1993
a. Liability of Depositary
b. Liability of Depositor
3. Liability for Expenses - Art. 1992
C. Obligation to Return
1. By Whom and To Whom - Art. 1972, Art. 1970, Art. 1971, Art. 1984, Art. 1985, Art. 1212, Art. 1214,
Art. 1986, Art. 1991
2. What to Return - Art. 1983, Art. 1896
3. Where to Return - Art. 1987
4. When to Return - Art. 1988, Art. 1989
5. Right of Retention - Art. 1994

Necessary Deposit
A. General Concepts - Art. 1964, Art. 1967, Art. 1996, Art. 1966
B. Examples of Necessary Deposit
1. Compliance with a Legal Obligation - Art. 1996, Art. 1997
2. On the Occasion of a Calamity - Art. 1996, Art. 1997, Art. 2168
3. Passenger Baggage with Common Carriers - Art. 1754
4. Hotels or Inns - Art. 1998 to 2004
YHT Realty Corporation v. Court of Appeals, G.R. No. 126780, February 17, 2005, 451 SCRA 638.

Judicial Deposit - Art. 1964, Art. 2005 to 2009

Warehouse Receipts
A. General Concept - Act No. 2137 (The Warehouse Receipts Law), Sec. 1 to Sec. 7
B. Obligations and Rights of a Warehouseman
1. Obligation to Deliver - Act No. 2137, Sec. 8 to 19, Sec. 36, Sec. 58
2. Liability for Goods - Sec. 20 to Sec. 26
3. Warehouseman’s Lien Sec. 31 to Sec. 36
C. Negotiation and Transfer - Sec. 37 to Sec. Sec. 49
D. Criminal Liability - Sec. 50 to Sec. 55
E. General Bonded Warehouses
Act No. 3893 (Bonded Warehouse Act), as amended
Philippine National Bank v. Se et al., G.R. No. 119231. April 18, 1996, 256 SCRA 380.

Security Transactions

V. Pledge and Mortgage

A. General Concepts - Art. 2085, Art. 2087
B. Obligations Secured - Art. 2086, Art. 2052, Art. 209
C. Contract to Pledge or to Mortgage - Art. 2092
D. Remedies of Pledgee and Mortgagee
E. Indivisibility of a Pledge or Mortgage - Art. 2089, Art. 2090
F. Pactum Commissorium - Art. 2087, Art. 2088
1. Elements
2. Effect on Pledge or Mortgage
 Development Bank of the Philippines v. Court of Appeals, G.R. No.118342, January 5, 1998, 284
SCRA 14.
Bustamante v. Rosel, G. R. No. 126800, November 29, 1999, 319 SCRA 413.
Ong v. Roban Lending Corporation, G.R. No. 172592, July 9, 2008, 557 SCRA 516.
G. Equitable Mortgage - Art. 1602 to 1605

VI. Pledge
A. General Concepts - Art. 2085, Art. 2087, Art. 2123
B. Form of Pledge - Art. 2096
C. Obligations Secured
D. Object of Pledge - Art. 2094, Art. 2095, Art. 416, Art. 417
E. Ownership of Collateral - Art. 2103, Art. 2102, Art. 2101, Art. 1951, Art. 2108, Art. 2112, Art. 2097
Estate of Litton v. Mendoza & Court of Appeals, G.R. No. L-49120, June 30, 1988, 163 SCRA 246.
F. Rights of Third Party Pledgor - Art. 2120, Art. 2117, Art. 2066 to 2070, Art. 2079 to 2081
G. Right to Possession - Art. 2093, Art. 2110
1. Right of Retention - Art. 2098, Art. 2109, Art. 2099, Art. 2100, Art. 2104, Art. 2106
2. Right to Payment - Art. 2102, Art. 2118
Manila Banking Corporation
v. Teodoro, Jr. and Teodoro, G.R. No. 53955, January 13, 1989, 169
SCRA 95.
Citibank, N.A. & Investors Finance Corporation v. Sabeniano, G.R. No. 156132, October 12, 2006,
504 SCRA 378.
H. Return of Collateral - Art. 2105, Art. 2107, Art. 2108, Art. 2110, Art. 2111
I. Foreclosure of Pledge - Art. 2112, Art. 2119
1. Who May Bid - Art. 2113, Art. 2114
2. Effect of Notarial Sale
a. Extinction of Principal Obligation - Art. 2115, Art. 2116
b. Right of Redemption
Paray & Espeleta v. Rodriguez, et al., G.R. No. 132287, January 24, 2006, 479 SCRA 571.
c. Right to Surplus or Deficiency - Art. 2115
J. Legal Pledges - Art. 2121
1. Examples of Legal Pledges - Art. 1944, Art. 1951, Art. 1994, Art. 2004, Art. 546, Art. 1731
2. Foreclosure of Legal Pledge - Art. 2122, Art. 2121

VII. Real Estate Mortgage

A. General Concepts - Art. 2085, 2087
B. Form of Real Estate Mortgage - Art. 2125, Art. 2131
C. Obligations Secured
Prudential Bank v. Alviar & Alviar, G.R. No. 150197, July 28, 2005, 464 SCRA 353.
D. Object of Real Estate Mortgage - Art. 2124, 415
1. After Acquired Properties
People’s Bank & Trust Company & Atlantic Gulf and Pacific Co. of Manila v. Dahican Lumber
Company, et al., G.R. No. L-17500, May 16, 1967, 20 SCRA 84
2. Effect and Extent - Art. 2126, Art. 2127, Art. 2129
E. Right to Alienate Real Estate Mortgage Credit - Art. 2128, Art. 1625, Art. 1627
F. Right to Alienate Collateral - Art. 2085, Art. 2130
G. Foreclosure of Real Estate Mortgage
1. Judicial Foreclosure
a. Complaint for Foreclosure - Rules of Court, Rule 68, Sec. 1
b. Judgment on Foreclosure - Rules of Court, Rule 68, Sec. 2
Korea Exchange Bank v. Filkor Business Integrated, Inc., et al., G.R. No. 138292, April 10, 2002, 380
SCRA 381.
c. Equity of Redemption - Rules of Court, Rule 68, Sec. 2
d. Foreclosure Sale - Rules of Court, Rule 68, Sec. 3 to Sec 5, Sec. 7, Sec. 8; Rules of Court, Rule 39,
Sec. 31, Sec. 32, Sec. 34
e. Right of Redemption
 Huerta Alba Resort, Inc. v. Court of Appeals, G.R. No. 128567, September 1, 2000, 339 SCRA 534
f. Right to Surplus or Deficiency - Rules of Court, Rule 68, Sec. 4, Sec. 6; Rules of Court, Rule 86, Sec. 2.
Extrajudicial Foreclosure
a. Special Powers - Act No. 3135 (An Act to Regulate the Sale of Property Under Special Powers
Inserted in Or Annexed to Real Estate Mortgages), Sec. 1
b. Foreclosure Sale - Act No. 3135, Sec. 2; A.M. No. 99-10-05-0, as amended
1) Requirement of Notice
Grand Farms, Inc. & Philippine Shares Corporation v. Court of Appeals, et al., G.R. No. 91779,
February 7, 1991, 193 SCRA 748.
2) Conduct of Sale - Act No. 3135, Sec. 4, Sec. 5; A.M. No. 99-10-05-0
c. Right of Redemption - Act No. 3135, Sec. 6; A.M. No. 99-10-05-0
1) Who may Redeem - Act No. 3135, Sec. 6; Rules of Court, Rule 39, Sec. 27
Medida, et al. v.
Court of Appeals, et al., G.R. No. 98334, May 8, 1992, 208 SCRA 887
2) How to Redeem - Rules of Court, Rule 39, Sec. 28, Sec. 29, Sec. 30, Sec. 33
d. Right to Deficiency - Rules of Court, Rule 86, Sec. 7
e. Right to Surplus
Suico v. Philippine National Bank, G.R. No. 170215, August 28, 2007, 531 SCRA 514.
f. Right to Possession1) During Redemption Period - Act No. 3135, Sec. 7 to 9
2) After Consolidation of Ownership - Rules of Court, Rule 39, Sec. 33
3) When Held by a Third Party - Rules of Court, Rule 39, Sec. 33, Sec. 16
BPI Family Savings Bank, Inc. v. Golden Power Diesel Sales Center, Inc., G.R. No. 176019, January
12, 2011, 639 SCRA 405.

VIII. Chattel Mortgage

A. General Concepts - Art. 2085, Art. 2087, Art. 2140, Art. 2141
PCI Leasing & Finance, Inc. v. Trojan Metal Industries Inc., et al., G.R. No. 176381, December 15,
2010, 638 SCRA 615.
B. Form of Chattel Mortgage - Act No. 1508 (The Chattel Mortgage Law), Sec. 4 to Sec. 6
C. Obligations Secured - Act No. 1508, Sec. 5
ACME Shoe, Rubber & Plastic Corporation v. Court of Appeals, G.R. No. 103576, August 22, 1996,
260 SCRA 714.
D. Object of Chattel Mortgage
Art. 2124, Art. 416, Art. 417
Act No. 1508, Sec. 2
Makati Leasing & Finance Corporation v. Wearever Textile Mills, Inc. & Court of Appeals, G.R. No. L-
58469, May 16, 1983, 122 SCRA 296.
1. Reasonable Description Rule
Act No. 1508, Sec. 7
2. After Acquired Properties
Act No. 1508, Sec. 7
E. Ownership of Collateral
Dy v. Court of Appeals, G.R. No. 92989, July 8, 1991, 198 SCRA 826.
F. Foreclosure of Chattel Mortgage
Act No. 1508, Sec. 8, Sec. 14
A.M. No. 99-10-05-0
1. Equity of Redemption
Act No. 1508, Sec. 13, Sec. 14
2. Right of Redemption
Rizal Commercial Banking Corporation v. Royal Cargo Corporation, G.R. No. 179756, October 2,
2009, 602 SCRA 545.
3. Right to Possession
Servicewide Specialists, Inc. v. Court of Appeals, G.R. No. 110048, November 19, 1999, 318 SCRA
493.
4. Right to Surplus or Deficiency
Act No. 1508, Sec. 14
PAMECA Wood Treatment Plant, Inc. v. Court of Appeals, G.R. No. 106435, July 14, 1999, 310
SCRA 281.
IX. Antichresis
Articles 2132-2139
Cecilio Diego v. Segundo Fernando, G.R. No. L-15128, August 25, 1960
Aniceto Bangis v. Heirs of Serafin And Salud Adolfo, G.R. No. 190875, June 13, 2012

X. Surety
A. General Concepts
Art. 2047, Art. 1211, Art. 1216,Art. 2082 to 2084
B. Form of Surety
Art. 1403
C. Obligations Secured
Art. 2053
Security Bank & Trust Company v. Cuenca, G.R. No. 138544. October 3, 2000, 341 SCRA 781.
D. Distinguished from Standby Letter of Credit
E. Distinguished from Guaranty
Art. 2047
Palmares v. Court of Appeals & M.B. Lending Corporation, G.R. No. 126490, March 31, 1998, 288
SCRA 422.
E. Zobel, Inc. v. Court of Appeals, G.R. No. 113931, May 6, 1998, 290 SCRA 1.
International Finance Corporation v. Imperial Textile Mills, Inc., G.R. No. 160324, November 15,
2005, 475 SCRA 149.
Philippine Blooming Mills, Inc. & Ching, v. Court of Appeals, G.R. No. 142381, October 15, 2003, 413
SCRA 445.
F. Distinguished from Joint and Solidary Obligations
Art. 2047, Art. 2066, Art. 2067, Art. 1217
Escano & Silos v. Ortigas, Jr., G. R. No. 151953, June 29, 2007, 526 SCRA 26.

XI. Guaranty
A. General Concepts
Art. 2047, Art. 2048, Art. 2051
B. Form of Guaranty
Art. 2055, Art. 1403
C. Obligations Secured
Art. 2052 to 2054
D. Parties to a Guaranty
Art. 2056. Art. 2057, Art. 2049, Art. 2064, Art. 2065
E. Benefit of Excussion
Art. 2058 to 2064, Art. 2081
Tupaz IV & Tupaz v. Court of Appeals & Bank of the Philippine Islands, G.R. No. 145578, November
18, 2005, 475 SCRA 398.
F. Right to Protection
Art. 2071
G. Right to Indemnification
Art. 2066, Art. 2050, Art. 1236, Art. 2069, Art. 2070, Art. 2072
H. Right to Subrogation
Art. 2067, Art. 2050, Art. 1237, Art. 2068, Art. 2080
I. Rights of Co-Guarantors
1. Benefit of Division
Art. 2065, Art. 2078
2. Right to Reimbursement
Art. 2073 to 2075.
J. Extinguishment and Right of Release
Art. 2076, Art. 2077, Art. 2079, Art. 2080
RA No. 10142 - "Financial Rehabilitation and Insolvency Act (FRIA) of 2010".
XII. Insolvency
The Concept of Insolvency
Art. 2236, Art. 2237
R. A. No. 10142, Sec. 2, Sec. 4, Sec. 146 to Sec. 148
A. Nature of Insolvency Proceedings
R. A. No. 10142, Sec. 3, Sec. 7, Sec. 6
B. Civil and Criminal Liability in Insolvency Proceedings
R. A. No. 10142, Sec. 10. Sec. 145

XIII. Insolvency: Rehabilitation

A. General Concepts
R.A. No. 10142, Sec. 2
B. Court-Supervised Rehabilitation
1. Voluntary Proceedings
Sec. 12
2. Involuntary Proceedings
Sec. 13, Sec. 14
3. Provisions Common to Voluntary and Involuntary Rehabilitation Proceedings
a. Commencement Order
Sec. 15 to 17, Sec. 19, Sec. 21
b. Stay or Suspension Order
Sec. 16, Sec. 20
1) General Concepts
Rizal Commercial Banking Corporation v. Intermediate Appellate Court, G.R. No. 74851, December 9,
1999, 320 SCRA 279.
Sobrejuanite v. ASB Development Corporation, G.R. No. 165675, September 30, 2005, 471 SCRA 763.
2) Exceptions to Stay or Suspension Order
Sec. 18, Sec. 16
Metropolitan Waterworks & Sewerage System v. Daway and Maynilad Water Services, Inc., G.R. No.
160732, June 21, 2004, 432 SCRA 559.
Panlilio, et al. v. Regional Trial Court, Branch 51, City of Manila, G.R. No. 173846, February 2, 2011, 641
SCRA 438.
c. Subsequent Actions
Sec. 22, Sec. 24 to 27
d. Rehabilitation Receiver
1) General Concepts
Sec. 28 to 30, Sec. 32 to 35, Sec. 40
2) Powers, Duties and Responsibilities
Sec. 47, Sec. 24, Sec. 31, Sec. 39, Sec. 41
e. Creditors’ Committees
Sec. 42, Sec. 43, Sec. 8, Sec. 9
f. Management Committee
Sec. 47, Sec. 36 to 38
g. Claims
Sec. 4(c)
1) Determination of Claims
Sec. 16, Sec. 44 to 46
2) Treatment of Claims
a) Secured Creditor Claims
Sec. 60, Sec. 61
b) Employee Claims
Sec. 56, Sec. 16
c) Excluded Claims
Sec. 23
h. Treatment of Assets
Sec. 47
1) Unencumbered Assets
Sec. 48, Sec. 49, Sec. 52
2) Encumbered Assets
Sec. 17, Sec. 50, Sec. 51, Sec. 53
i. Treatment of Contracts
1) Confirmation or Termination of Contracts
Sec. 57, Sec. 16
2) Avoidance Proceedings
Sec. 58, Sec. 59
j. Rehabilitation Plan
1) General Concepts
Sec. 62, Sec. 54, Sec. 55
2) Cram Down Effect
Sec. 63 to 73
Bank of the Philippine Islands v. Securities & Exchange Commission, et al., G.R. No. 164641, December
20, 2007, 541 SCRA 294.
k. Termination of Proceedings
Sec. 74, Sec. 75
l. Conversion to Liquidation Proceedings
Sec. 92
C. Pre-negotiated Rehabilitation
Sec. 76 to 82, Sec. 92
D. Out-of-Court Rehabilitation
Sec. 83, Sec. 84.
1. General Concepts
2. Benefits of Out-of-Court Rehabilitation
Sec. 85 to 89

IX. Insolvency: Suspension of Payments

A. General Concepts
RA No. 10142, Sec. 2, Sec. 94. Sec. 95
1. Automatic Stay
Sec. 96
2. Suspension Order
Sec. 96
3. Injunction Against Debtor
Sec. 95
B. Commissioner
Sec. 95, Sec. 97
C. Creditors’ Meeting
Sec. 97, Sec. 99, Sec. 100
D. Proposed Agreement
Sec. 94, Sec. 101, Sec. 102
E. Treatment of Claims
Sec. 96, Sec. 98, Sec. 101
1. Secured Creditor Claims
2. Exempt Claims
3. Excluded Claims

XV. Insolvency: Liquidation

A. General Concepts
Art. 2238 to 2240
R.A. No. 10142, Sec. 2, Sec. 4
B. Liquidation of Insolvent Individual Debtor
1. Voluntary Liquidation
R. A. No. 10142, Sec. 103, Sec. 104
2. Involuntary Liquidation
a. Acts of Insolvency
Sec. 105
b. Show Cause Order; Injunction; Default
Sec. 106, Sec. 107
c. Absent Individual Debtor
Sec. 108
d. Custody of Property; Sale of Property
Sec. 109, Sec. 110
C. Liquidation of Insolvent Juridical Debtors
Sec. 93
1. Voluntary Liquidation
Sec. 90
2. Involuntary Liquidation
D. Provisions Common to Liquidation of Individual and Juridical Debtors
Sec. 111
1. Liquidation Order
Sec. 112, Sec. 113
2. Liquidator
a. General Concepts
Sec. 115 to 118, Sec. 29
Sec. 120, Sec. 122
b. Powers, Duties and Responsibilities
Sec. 119, Sec. 113, Sec. 123, Sec. 126, Sec. 129, Sec. 131, Sec. 132, Sec. 121
3. Claims
Sec. 4(c)
a. Determination of Claims
Sec. 112, Sec. 123 to 126
b. Treatment of Claims
1) Secured Creditor Claims
Sec. 113, Sec. 114
Consuelo Metal Corporation, v. Planters Development Bank & Maningas, G.R. No. 152580, June 26,
2008, 555 SCRA 465.
2) Unsecured Creditor Claims
Sec. 123, Sec. 113
4. Treatment of Contracts
a. Termination or Breach of Contracts
Sec. 113
b. Avoidance Proceedings
Sec. 127, Sec. 58, Sec. 128
5. Liquidation Plan
Sec. 129 to 133
6. Termination of Proceedings
Sec. 121, Sec. 134, Sec. 135
E. Ancillary Proceedings
1. Securities Market Participant
Sec. 136
2. Banks and Other Financial Institutions Under Rehabilitation Receivership Pursuant to a State-funded or
State-mandated Insurance System.
Sec. 137, Sec. 138
3. Cross-Border Insolvency Proceedings
Sec. 139 to 142
XVI. Concurrence & Preference of Credits
A. General Concepts
R. A. No. 10142, Sec. 62, Sec. 133
B. Classification of Credits
1. Special Preferred Credits
Art. 2241, Art. 2242
R.A. No. 10142, Sec. 136
Art. 2243, Art. 2246 to 2250
De Barreto, et al. v. Villanueva, et al., G.R. No. L-14938, January 28, 1961, 1 SCRA 288, Resolution on
Motion to Consider, December 29, 1962, 6 SCRA 929.
Development Bank of the Philippines v. Court of Appeals, G.R. No. 126200, August 16, 2001, 363 SCRA
307.
J.L. Bernardo Construction v. Court of Appeals, G.R. No. 105827, January 31, 2000, 324 SCRA 24.
2. Ordinary Preferred Credits
Art. 2244
P. D. No. 442, Art. 110
R. A. No. 10142, Sec. 133
Art. 2251
3. Common Credits
Art. 2245, Art. 2251
Cordova v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, et. al, G.R. No. 146555, July 3, 2007,
526 SCRA 300.