Activity Task for Credit Transactions

Instruction: Please write your answer in a piece of paper. Submit your paper on or before
October 14, 2020 9:40AM to my gmail: jeremaeannceriaco@gmail.com with a subject of
ACTIVITY TASK – Credit Transactions

1. In 1982, Steve borrowed P400,000.00 from Danny, collateralized by a pledge of shares of

stock of Concepcion Corporation worth P800,000,00. In 1983, because of the economic
crisis, the value of the shares pledged fell to only P100,000.00. Can Danny demand that
Steve surrender the other shares worth P700,000.00? (5 points)

2. ABC loaned to MNO P40,000 for which the latter pledged 400 shares of stock in XYZ Inc.
It was agreed that if the pledgor failed to pay the loan with 10% yearly interest within four
years, the pledgee is authorized to foreclose on the shares of stock. As required, MNO
delivered possession of the shares to ABC with the understanding that the shares would be
returned to MNO upon the payment of the loan. However, the loan was not paid on time. A
month after 4 years, may the shares of stock pledged be deemed owned by ABC or not? (5
points)

3. Petitioner obtained a loan of P20K from defendant Rural Bank of Kawit. The loan was
secured by a REM over a parcel of land. The mortgage contract states that the mortgage
will cover the payment of the loan of P20K and such other loans or other advances already
obtained or to be obtained by the mortgagors from the bank. The loan of P20k was fully
paid. Thereafterthey again obtained a loan of P18K, secured by the same mortgage. The
spouses defaulted. The bank extra-judicially foreclosed the mortgage. Was the foreclosure
sale valid? (5 points)

4. D borrowed Php100,000.00 from C. the loan is secured by a mortgage of T’s lot. On due
date, D was unable to pay. Accordingly, C foreclosed the mortgaged on the lot and during
the public auction, the lot was sold for Php 90,000.00. Can C recovered the deficiency of P
10,000 from D? Reason. (5 points)

5. DiCarpio obtained a loan of Php50,000.00 from Carillo with Tapales pledging his Nikon
camera to secure the debt. Accordingly, Carillo caused the sale of the Nikon camera at
public auction. However, the net proceeds of the sale amounted to Php44,000.00 only or a
deficiency of Php6,000.00. From whom may Carillo recover the deficiency? (5 points)
6. On October 27, 1978, Acme Shoe Shop Corp. obtained a loan of P3 million from
Producers Bank of the Philippines. To secure its payment, Acme executed Chattel
Mortgage, subsequent promissory note or notes either as renewal of the former note, as an
extension thereof, or as a new loan, or is given any other kind of accommodations. The
mortgage shall also stand as security for the payment of the said promissory note or notes
and/or accommodations “without the necessity of executing a new contract.” This loan was
paid.
On January 10 and 11, 1984 the bank granted Acme a new loan of P1 million that was
not settled, prompting the bank to institute foreclosure proceedings. Acme sought to
enjoin the bank from foreclosing but the regional trial court ruled that the P1 million loan
was covered by the Chattel Mortgage executed on October 12, 1978 in the previous loan.
Is the P1 million loan covered by the Chattel Mortgage previously executed by Acme? (5
points)