PHILIPPINE NATIONAL BANK v.

RBL ENTERPRISES, INC.; RAMON B. LACSON SR.; and Spouses EDWARDO

and HERMINIA LEDESMA
G.R. No. 149569, May 28, 2004, J. PANGANIBAN
The RTC and CA found that PNB breached its obligation when it refused to
release the balance of the loan until the lessors conformity to the Mortgage
Contract would have been obtained. The SC affirmed, stating that PNB had ample
security to protect its interest. As provided in Article 2126 of the Civil Code, a real
estate mortgage is a real right following the property, such that in subsequent
transfers by the mortgagor, the transferee must respect the mortgage. A registered
mortgage lien is considered inseparable from the property inasmuch as it is a right
in rem. The mortgage creates a real right or a lien which, after being recorded,
follows the chattel wherever it goes.
FACTS:
Respondents Ramon Lacson and Sps. Edwardo and Herminia Ledesma
opened a prawn hatchery in San Enrique, Negros Occidental, and for this purpose,
leased from Nelly Bedrejo a parcel of land where the operations were conducted.
Lacson and Sps. Ledesma applied for and was approved a loan of P2,000,000.00, by
Petitioner PNB. A real estate mortgage over two parcels of land, located at Bago
City, Negros Occidental, and another real estate and chattel mortgage over the
buildings, culture tanks and other hatchery facilities located in the leased property
of Nelly Bedrejo were executed in favour of PNB. PNB partially released the sum of
P1,000,000.00. However, during the mid-part of the construction of the
improvements, PNB refused to release the balance of P1,000,000.00 because the
respondents failed to comply with the banks requirement that Nelly Bedrejo should
execute an undertaking or a lessors conformity. For said alleged failure to comply
with the additional requirement and the demand of PNB to pay the released amount
of P1,000,000.00, PNB foreclosed the mortgaged properties. The Regional Trial Court
ruled that PNBs partial release of the loan had estopped it from requiring the
respondents to secure the lessors signature. The Court of Appeals affirmed the
RTCs findings adding that Bedrejo, being a non-party to the Mortgage Contract
could not be compelled to affix her signature.
ISSUE:
Whether PNBs non-release of the loan was justified?
RULING:
NO. The records show that all the real estate and chattel mortgages were
registered with the Register of Deeds of Bago City, Negros Occidental, and
annotated at the back of the mortgaged titles. Thus, PNB had ample security to
protect its interest. Even if the mortgaged property is in the possession of the
debtor, the creditor is still protected. To protect the latter from the formers possible
disposal of the property, the chattel mortgage is made effective against third
persons by the process of registration. Article 2126 of the Civil Code describes the
real nature of a mortgage: it is a real right following the property, such that in
subsequent transfers by the mortgagor, the transferee must respect the mortgage.
A registered mortgage lien is considered inseparable from the property inasmuch as

it is a right in rem. The mortgage creates a real right or a lien which, after being
recorded, follows the chattel wherever it goes. Moreover, if the parties truly
intended to suspend the release of the balance until the lessors conformity to the
Mortgage Contract would have been obtained, such condition should have been
plainly stipulated either in that Contract or in the Credit Agreement. For these
reasons, PNBs constituted a breach of its reciprocal obligation under the Loan
Agreement.