SAN BEDA UNIVERSITY

COLLEGE OF LAW
COURSE SYLLABUS

COURSE CODE: COM1

COURSE TITLE: COMMERCIAL LAWS 1

COURSE CREDIT: 5 UNITS

FACULTY:

EMAIL ADDRESS:

TERM/ACADEMIC YEAR: SECOND SEMESTER SCHOOL YEAR 2023-2024

COURSE DELIVERY MODE: ONSITE

CONSULTATION DAY/TIME:

COURSE DESCRIPTION:

A survey of the important principles and concepts of basic laws on commercial

transactions, with a particular focus on Civil Code provisions on loans, mortgages,
pledges and guaranty, and similar credit transactions, as amended by the Personal
Property Security Act. Additionally, the course integrates discussion on relevant
provisions of laws on banking, negotiable instruments and financial rehabilitation.

COURSE GOALS: Expected College of Law Graduate Attributes (“ELGAs”)

(A) Know and understand the laws; (B) Memorize provisions; (C) Develop: (i)
critical and analytical thinking; (ii) proficiency in written and oral communication;
and (iii) logical reasoning and sound judgment; and (D) Exercise proper
professional and ethical responsibilities

LEARNING OBJECTIVES/OUTCOMES (“LOs”):

1. Knowledge/Remembering: define, list, recognize

2. Comprehension/Understanding: describe, explain, identify, recognize
3. Application/Applying: choose, demonstrate, implement, perform
4. Analysis/Analyzing: analyze, categorize, compare, differentiate
5. Evaluation/Evaluating: assess, critique, evaluate, rank, rate
6. Synthesis/Creating: construct, design, formulate, organize, synthesize

Upon completion of the Course Title course, the student is expected to be able to:

ELGAs LEARNING OUTCOMES (LOs)

Critical and analytical LO1. Explain how commercial laws are created and enforced by the
thinking executive, legislative, and judiciary during class recitations and
Effective in written and discussions.
oral communication LO2. Analyze the practical and policy implications of current and
Logical reasoning proposed commercial laws, regulations, judicial rulings, legal
Sound judgment arguments, and strategies in dealing commercial transactions.
Exercise of proper LO3. Assess a transaction and develop legal arguments and
professional and ethical strategies.
responsibilities

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 LO4. Utilize legal research tools to gather pieces of information that
aid in the analysis of legal issues in drafting a research paper

ASSESSMENT/GRADING SYSTEM:

The student will be graded according to the following:

Percentage
(Weight is based
Requirements Based on the Learning Outcomes Scope of Work
on the
(“LO”) (Individual)
importance of
the LO)
LO1 Class recitations, Quizzes, Case Digests, Individual
LO2 and Discussion Individual
LO3 Individual
LO4 - Research Paper, Case Study

Class standing before Midterms Individual 16.67%

Midterm Exams Individual 16.67%
Class Standing after Midterms Individual 33.33%
Final Exams Individual 33.33%
TOTAL 100%

LEARNING PLAN:

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Course Introduction
• Course overview Syllabus First Lecture
• Course assignments Week
• Course requirements Discussion

MODULE 1: LOAN AND DEPOSIT

Syllabus Recitation
1. Civil Code Provisions on Loan (Articles 1933 to
Textbooks First Case Study
1961)
Week
2. Civil Code Provisions on Deposit (Articles 1962
Supreme Discussion
to 2009)
Court
3. Sections 51 and 52 of New Central Bank Act or
Decisions Quiz
Republic Act (R.A.) No. 7653

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4. Usury Law or Presidential Decree (P.D.) No.
1684
5. Truth in Lending Act or R.A. No. 3765
6. Access Devices Regulation Act or R.A. No. 8484
7. Section 320 of Manual of Regulations for Banks
(MORB)
8. Article 131 to 147 of R.A. No. 7394
9. Section 43 of General Banking Law
10. P.D. No. 114
11. R.A. No. 9474
12. Warehouse Receipts Law or Act 2137

See Annex “A” for the case list.

MODULE 2: GUARANTY AND SURETY

1. Civil Code Provisions on Guaranty and Surety

(Articles 2047 to 2084) Syllabus Recitation
2. Financial Lease under R.A. No. 5980 as amended
by R.A. No. 8556. Textbooks Case Study
TBA
3. Sections 177 and 178 of the Insurance Code of the
Philippines Supreme Discussion
4. Letters of Credit under the Code of Commerce Court
5. Trust Receipts Law or P.D. No. 115 Decisions Quiz

See Annex “A” for the case list.

MODULE 3: PERSONAL PROPERTY SECURITY

ACT AND REAL SECURITY

1. Civil Code Provisions on Mortgage (Articles

2085 to 2092 and Articles 2124 to 2131)
2. Civil Code Provisions on Antichresis (Articles Syllabus
Recitation
2132 to 2139)
3. Rule 68 of Revised Rules of Court Textbooks
TBA Case Study
4. Act 3135
5. A.M. No. 99-10-05-0-SC Supreme
Discussion
Court
Quiz
6. R.A. No. 11057 Decisions

A. Effect on Other Chattel Mortgage and Pledge.

1. Transitional Period

B. Distinguished from other Securities

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C. Characteristics of Personal Property Security

(PPS)

D. Concept of Personal Properties

E. Parties and Obligations Secured by the PPS

F. Creation of PPS
1. Security Agreements
2. Formalities and Requisites

G. Perfection of PPS
1. Tangible and Intangible Properties.
2. Registration and the National Registry
3. Possession
4. Control Agreements

H. Priority Interest under the PPSA

I. Enforcement of PPSA
1. Right of Redemption.
2. Take-Over of Enforcement
3. Expedited Repossession
4. Disposition of Collateral
5. Recovery in Special Cases
6. Retention of Collateral

See Annex “A” for the case list.

MODULE 4: CONCURRENCE AND

PREFERENCE OF CREDITS AND FINANCIAL
REHABILITATION ACT

1. Civil Code Provisions on Concurrence and

Preference of Credits (Articles 2236 to 2251)
2. R.A. No. 10142
3. A.M. No. 15-04-06-SC

See Annex “A” for the case list.

MID-TERM EXAMINATIONS TBA

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MODULE 5: NEGOTIABLE INSTRUMENTS LAW

(PART 1)

PRELIMINARY CONSIDERATIONS

1. Governing laws
2. Concept of negotiable instrument
3. Classes of negotiable instrument
a. Promissory Note
b. Bill of Exchange
4. Functions of a negotiable instrument
5. Characteristics of negotiable instrument
a. negotiability
b. accumulation of secondary contracts
6. Negotiable instruments compared with
other papers (document of title, letter of
credit, certificate of stock, pawn ticket,
postal money order, treasury warrant)
7. Legal tender character
Syllabus
Recitation
CASES: Phil. Educ. Co., Inc. vs. Soriano, 39 SCRA 587;
Textbooks
Tibajia, Jr. vs. CA, 223 SCRA 163; Philippine Airlines
TBA Case Study
vs. CA, 181 SCRA 557
Supreme
Court Discussion
FORM AND INTERPRETATION OF NEGOTIABLE
Decisions
INSTRUMENTS

1. Requisites of negotiability (Sec. 1, NIL)

a. must be in writing and signed by the
maker or drawer
b. must contain an unconditional
promise or order to pay a sum certain
in money
(1) promise or order to pay must
be unconditional
(a) reference to transaction
(Sec. 3, NIL)
(b) source or payment or
account to be debited
(2) payable in sum certain in
money
(a) provisions which do
not affect certainty of
sum
payable

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(ii) payment of interest
(Sec. 2, NIL)
(iii) payment by
installments (Sec. 2, NIL)
(iv) acceleration clause
(Sec. 2, NIL)
(v) payment with exchange
(Sec. 2, NIL)
(vi) payment of attorney’s
fees (Sec. 2, NIL)

CASES: Metropolitan Bank & Trust Company vs. CA,

Feb. 18, 1991, 194 SCRA 169; Caltex Phils. vs. CA, 212
SCRA 448

c. payable on demand or at a fixed or

determinable future time
(1) when payable on demand (Sec.
7, NIL)
(2) when payable at determinable
future time (Sec. 4, NIL)

d. payable to order or bearer

(1) when payable to bearer (Sec. 9,
NIL)
(a) rule when instrument is
payable to a fictitious
person)
(2) when payable to order
(a) to whose order the
instrument may be
made payable (Sec. 8,
NIL)

CASES: Ang Tek Lian vs. CA, 87 Phil. 383; PNB vs.
Rodriguez, G.R. No. 170325, September 26, 2008

e. omissions that do not affect

negotiability (Sec.6, NIL)

f. additional provisions not affecting

negotiability (Sec. 5, NIL)
(1) sale of collateral securities
(2) confession of judgment
(3) waiver of benefit

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(4) option to require something in
lieu of payment

CASES: Philippine National Bank vs. Manila Oil

Refining & By-Products Company, 43 Phil 445

2. Rules to be followed in interpreting

negotiable instruments (Sec. 17, NIL)

CASES: Republic Planters Bank vs. CA, 216 SCRA 738;

Sps. Evangelista vs. Mercator Finance Corp., et al,
August 21, 2003; Ilano vs. Hon. Espanol, G.R. No.
161756, 16 December 2005

NEGOTIATION

1. Modes of transfer

2. Concept of negotiation (Sec. 30, NIL);

distinguished from assignment

CASES: Sesbreño vs. CA, 222 SCRA 466; Consolidated

Plywood Inc. vs. IFC Leasing 149 SCRA 448

3. Ways of negotiation (in case of order or

bearer instruments)

4. Concept of delivery

CASES: De la Victoria vs. Hon. Burgos, 245 SCRA 374;

Development Bank of Rizal vs. Sima Wei, 219 SCRA
736

5. Indorsement
a. concept
b. how made (Sec. 31 & 32, NIL)
c. kinds:
(1) special and blank (Sec. 34 &
35, NIL)
(2) conditional (Sec. 39, NIL)
(3) qualified (Sec. 38, NIL)
(4) restrictive (Sec. 36 & 37, NIL)
d. other rules on indorsement

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(1) indorsement of an instrument
payable to bearer (Sec. 40,
NIL)
(2) where instrument is payable to
two or more persons (Sec. 21,
NIL)
(3) instrument is drawn or
indorsed to a person as cashier
(Sec. 42, NIL)
(4) where name of payee or
indorsee is misspelled (Sec.
43, NIL)
(5) indorsement in a
representative capacity (Sec.
44, NIL)
(6) presumption as to time of
indorsement (Sec. 45, NIL)
(7) place of indorsement (Sec. 46,
NIL)
(8) striking out of indorsement
(Sec. 48, NIL)
(9) transfer of an order instrument
without indorsement (Sec. 49,
NIL)

CASES: Metropol (Bacolod) Financing vs. Sambok

Motors Co., et al., 120 SCRA 864); Gempesaw vs. CA,
218 SCRA 622

6. Negotiation by a prior party (Sec. 50, NIL)

HOLDERS

1. General concept of a holder

2. Holder in due course (requisites) (Sec. 52,
NIL)
a. instrument complete and regular
b. taken before overdue
(1) rule in case of installment
instruments
(2) rule in case of demand
instruments (Sec. 53, NIL)
c. notice of infirmity or defect (Sec. 56 &
57, NIL; see also Sec. 54, NIL)
d. good faith
e. holder for value

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3. Presumption of due course holding (Sec. 59,

NIL)

4. Rights of holders in due course (Sec. 57, NIL)

5. Shelter Rule (Sec. 58, NIL)

CASES: De Ocampo vs. Gatchalian, 03 SCRA 596;

Yang vs. CA, G.R. No. 138074, August 15, 2003; Mesina
vs. IAC, 145 SCRA 497

LIABILITY OF PARTIES

1. Primary and secondary liability distinguished

2. Liability distinguished from warranties

3. Liability and/or warranties of parties

a. Maker (Sec. 60, NIL)

b. Drawer (Sec. Sec. 61, NIL)
(1) relationship with drawee
(2) relationship with collecting bank
c. Acceptor (Sec. 127 & 62, NIL)
d. Indorsers
(1) General indorsers (Sec. 66, NIL)
(2) Qualified indorser (Sec. 65, NIL)
(3) Order of liability
e. Parties negotiating by mere delivery (Sec.
65, NIL)
f. Other cases:
(1) irregular indorser (Sec. 64, NIL)
(2) indorser of bearer instrument (Sec.
67, NIL)
(3) accommodation party (Sec. 29,
NIL)
(4) agents signing in behalf of the
principal

CASES: Philippine National Bank vs. Picornell, et al, 46

Phil 716; Astro Electronics vs. Roxas, et al., September
23, 2003; Garcia vs. Dionisio, December 8, 2003;
Crisologo-Jose vs. CA, Sept. 15, 1989; Sadaya vs.
Sevilla, 19 SCRA 924; Travel-On vs. CA, 210 SCRA

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352; Agro-Conglomerates Inc. vs. CA, 348 SCRA 350;
Gonzales vs. RCBC, 29 November 2006; Ang vs.
Associated Bank, 05 September 2007; Far East vs. Gold
Palace Jewelry, G.R. No. 168274, August 20, 2008;
Patrimonio v. Napoleon, G.R. No. 187769, June 4, 2014

MODULE 6: NEGOTIABLE INSTRUMENTS LAW

(PART 2)

DEFENSES

1. Real and personal defenses, distinguished.

2. Real defenses
3. Personal defenses

CASES: Salas vs. CA, January 22, 1990; Philippine

National Bank vs. CA, 256 SCRA 491; International
Corporate Bank vs. CA, 05 September 2006; Associated
Bank vs. CA, January 31, 1996; Jai-Alai vs. BPI, 66
SCRA 29; Republic vs. Ebrada, July 31, 1975; Philippine
National Bank vs. Quimpo, March 14, 1988; Gempesaw
Syllabus
vs. CA, February 9, 1993; Philippine Commercial
Recitation
International Bank vs. Court of Appeals, 350 SCRA 446;
Textbooks
MWSS vs. CA, 143 SCRA 20; Ilusorio vs. CA, 393
TBA Case Study
SCRA 89; Samsung Construction vs. Far East Bank, 15
Supreme
August 2004; Metrobank vs. Cabilzo, 06 December 2006;
Court Discussion
Bank of America vs. Philippine Racing Club, G.R. No.
Decisions
150228, July 20, 2009

ENFORCEMENT OF LIABILITY

1. Parties primarily liable and parties

secondarily liable

2. General steps in enforcing liability

a. promissory notes
(1) presentment for payment
(Sec. 70, NIL)
(2) notice of dishonor (Sec.
89, NIL)
b. bills of exchange
(1) presentment for
acceptance (Sec. 143, NIL)

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(a) how made (Sec.
132-135 & 137,
NIL)
(b) time to accept (Sec.
136, NIL)
(c) rule when
incomplete bill is
accepted (Sec. 138,
NIL)
(d) kinds of acceptance
(Sec. 139-142,
NIL)
(2) if dishonored by non-
acceptance:
(a) notice of dishonor
(Sec. 89, NIL)
(b) rule in case of
foreign bills (See
provisions on
protest)
(3) If accepted:
(a) presentment for
payment to
acceptor
(b) rule if dishonored
upon presentment
for payment
(c) rule in case of
foreign bill

3. Presentment for payment

a. Concept of presentment
b. Requisites for sufficiency (Sec.
72, NIL)
(1) date of presentment (Sec.
71, NIL)
(a) rule in determining
maturity date (Sec.
85, NIL)
(b) rule in computing
time (Sec. 86, NIL)
(c) rule if payable at a
bank (Sec. 75, NIL)
(2) place of presentment (Sec.
73 NIL)

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(a) rule if payable at a
special place (Sec.
70, NIL)
(3) presentment to the party
primarily liable
(a) how presentment
made (Sec. 74,
NIL)
(b) rule in case party
primarily liable is
already dead (Sec.
76, NIL)
(c) presentment to
partners (Sec. 77,
NIL)
(d) presentment to
joint debtors (Sec.
78, NIL)

c. Instances where presentment is

excused (Sec. 79 & 82, NIL)
d. When delay in presentment excused
(Sec. 81, NIL)

4. Notice of dishonor
a. when dishonor of the instrument
occurs:
(1) dishonor by non-payment
(Sec. 83, NIL)
(2) dishonor by non-
acceptance (Sec. 149, NIL)
c. who should give notice
(1) holder
(2) agent
(3) party who may be
compelled to pay
d. form of notice (Sec. 43 & 44, NIL)
e. to whom notice is given
(1) party secondarily liable or
agent (Sec. 97, NIL)
(2) notice where party is dead
(Sec. 98, NIL)
(3) notice to partners (Sec. 99,
NIL)
(4) notice to persons jointly
liable (Sec. 100, NIL)

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(5) notice to bankrupt (Sec.
101, NIL)

f. time and place of notice (Sec. 103-

108, NIL)
g. when notice is excused or
unnecessary (Sec. 109-112, 114-
115, NIL)
h. when delay in giving notice
excused (Sec. 113, NIL)

CASES: Far East Realty Investment, Inc. vs. CA, 166

SCRA 256; Wong vs. CA, February 2, 2001;
International Corporate Bank vs. Sps. Gueco, February
12, 2001; Far East Realty vs. CA, October 5, 1988; State
Investment House vs. CA, 217 SCRA 32; Asia Banking
Corporation vs. Javier, 44 Phil 777; Nyco Sales
Corporation vs. BA Finance Corporation, 200 SCRA
637; Arceo, Jr. vs. People of the Philippines, G.R. No.
142641, 17 July 2006; Allied Banking vs. CA, GG
Sportswear, 11 July 2006; Areza v. Express Savings
Bank, Inc., G.R. No. 176697, September 10, 2014

DISCHARGE OF INSTRUMENTS

1. Concept of discharge
2. How instrument is discharged (Sec. 119,
NIL)
a. payment in due course (Sec. 88,
NIL)
(1) by the principal debtor
(Sec. 119 [a])
(2) by the accommodated
party (Sec. 119[b])
b. intentional cancellation
(1) rule in case of
unintentional cancellation
(Sec. 123, NIL)
c. any act that discharge simple
contracts
d. principal debtor becomes a holder

3. Discharge of persons secondarily liable

(Sec. 120, NIL)

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CHECKS
1. Checks defined (Sec. 185, NIL)
2. Distinguished from draft
3. Relationship between drawer, drawee and
payee
4. Kinds of check
a. cashier’s and manager’s check
(See BSP Circulars 259, series of
2000 & 291, series of 2001)
b. certified check (Sec. 187-189,
NIL)
c. crossed check (Art. 541, Code of
Commerce)
(1) effects of crossing a check
d. memorandum and traveller’s
check
5. when required to be presented for
payment (Sec. 185, NIL)
6. effect of death of drawer
7. pertinent Philippine Clearing House
Corporation rules

CASES: New Pacific Timber vs. Hon. Seneris, December

19, 1980; PNB vs. National City Bank of New York, 63
Phil 711; Bataan Cigar vs. CA, 230 SCRA 648; Stelco
Marketing Corporation vs. CA, June 17, 1992; State
Investment House vs. CA, 175 SCRA 311; Papa vs. A.U.
Valencia, 284 SCRA 643; Villanueva vs. Nite, G.R. No.
148211, 25 July 2006; Equitable PCI vs. Ong, 15
September 2006; Security Bank & Trust Company vs.
RCBC, G.R. Nos. 170984 & 170987, January 30, 2009

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MODULE 8: BANKING LAWS (PART 1)

I. GENERAL CONCEPTS
A. Definition of Banks
Quasi-Banks

B. Nature of the Business

1. Utmost Diligence
2. Strikes and Lockouts

C. Requirements to Operate
1. Incorporation
2. Business Operation

D. Applicable Laws

II. CLASSIFICATION OF BANKS

A. Universal Banks
Syllabus
Recitation
B. Commercial Banks
Textbooks
1. Rural Banks
TBA Case Study
2. Other Banks (cooperative, thrift, Islamic,
Supreme
foreign, etc.)
Court Discussion
3. Areas of Distinctions
Decisions
(a) capitalization
(b) purpose
(c) powers
(d) equity
(e) board composition
(f) public offering

III. DEPOSIT FUNCTION

A. Contractual relationship between the bank

and the depositor

B. Legal consequences of contractual

relationship

C. Capacity of Depositor
1. Minors
2. Married Woman
3. Corporations

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D. Kinds of Deposits (Savings, Time, Demand,
others)

E. Ownership of Deposit and Authority to

Withdraw
1. Individual
2. Joint

F. Rule on Anonymous Accounts

G. Disposition of Deposit of a Deceased

Depositor (Survivorship Agreements)

H. Secrecy of Bank Deposits

1. Confidentiality of Deposits (Rationale)
2. Exceptions to the Secrecy Rule
(a) Exceptions under RA 1405
(b) Anti-Graft and Corrupt Practices Act
(c) Unclaimed Balances Act
(d) Tax law
(e) Anti-Money Laundering Act
(f) Human Security Act
(g) Rule under Foreign Currency Deposit
Act

I. PDIC Insurance
1. Amount of coverage
2. Rules on payment

CASES: BPI v. First Metro, G.R. No. 132390, December

8, 2004, 429 SCRA 30; Vitug vs. Court of Appeals, 29
March 1990; Intengan vs. Court of Appeals, 15 February
2002; China Bank vs. Ortega, 49 SCRA 356; Salvacion
vs. Central Bank, 21 August 1997; Ejercito vs.
Sandiganbayan, 30 November 2006; People vs. Ejercito
Estrada, 2 April 2009; Marquez v. Desierto, G.R. No.
135882, June 27, 2001)

IV. LOAN FUNCTION OF BANKS

A. Legal basis
B. Terms and Conditions
1. Amortization
2. Rules on Pre-Payment and Renewal
3. Interest

16
 LEARNING
LEARNIN
WEEK/ METHODS
G
DATE (activities
RESOURC
(Schedule designed or
ES
TOPIC/CONTENT of each deployed by
(print and
(arrangement or sequence of the major topics is Topic, the teacher
non-print
based on a logical order) Assign, to bring
materials
Exam for about, or
and online/
the entire create the
open-access
semester) conditions
resources)
for learning)

C. DOSRI Accounts
1. Requisites
2. Persons Covered
3. Transactions Covered
4. Restrictions under the GBL
5. Restrictions under Sec. 26, NCBA

D. Collaterals
1. Value of Collaterals
2. Foreclosure of Mortgage
3. Redemption Period
4. Effect of Estoppel and/or Agreement
5. Effect of Restraining Order

E. Single Borrower Limit

1. Rationale
2. Ceiling
3. Inclusions/Exclusions from SBL

F. Limit on Loans Against Property

G. Truth in Lending
1. Matters required to be disclosed
2. Penalties

CASES: Soriano vs. People of the Phils., 30 June 2009;

BPI vs. Sps. Yu, 20 January 2010; DBP vs. Arcilla, G.R.
No. 161397, 30 June 2005

17
 LEARNING
LEARNIN
WEEK/ METHODS
G
DATE (activities
RESOURC
(Schedule designed or
ES
TOPIC/CONTENT of each deployed by
(print and
(arrangement or sequence of the major topics is Topic, the teacher
non-print
based on a logical order) Assign, to bring
materials
Exam for about, or
and online/
the entire create the
open-access
semester) conditions
resources)
for learning)

MODULE 9: BANKING LAWS (PART 2)

V. BANK REGULATIONS

A. Ownership of Banks
1. Guidelines for Establishment
2. Foreign Stockholdings
(a) Individual and non-banks
(b) Foreign Banks
3. Filipino Stockholdings
4. Stockholdings of Related Interests
5. BSP Circulars on Ownership

B. Directors and Officers

1. Composition of Board
2. Public Officials
3. Meetings
4. Qualifications
(a) Fit and Proper Rule
Syllabus
(b) Minimum Qualifications
Recitation
5. Prohibited Acts and Disqualifications
Textbooks
TBA Case Study
C. Ownership of Real Property
Supreme
Court Discussion
CASE: Tala Realty Corp. vs. Banco Filipino, 7 April
Decisions
2009

VI. BANKS IN DISTRESS

A. Loans to Banks
1. Loans without Collateral
2. Emergency Loans

B. Conservatorship
1. Powers of Conservator
2. Report of the Conservator
3. Qualifications and Remunerations
4. Termination of Conservatorship

C. Receivership
1. Grounds
2. Duties of Receiver
3. Close Now-Hear Later Scheme
4. Other Legal Effects

18
 LEARNING
LEARNIN
WEEK/ METHODS
G
DATE (activities
RESOURC
(Schedule designed or
ES
TOPIC/CONTENT of each deployed by
(print and
(arrangement or sequence of the major topics is Topic, the teacher
non-print
based on a logical order) Assign, to bring
materials
Exam for about, or
and online/
the entire create the
open-access
semester) conditions
resources)
for learning)
D. Liquidation

CASES: Central Bank vs. Court of Appeals, 30 March

1993; Cudiamat vs. Batangas Savings, 9 March 2010;
Lipana vs. Development Bank of Rizal, 24 September
1987; Sps. Larrobis, Jr. vs. Philippine Veterans Bank, 1
October 2004; Fidelity Savings Bank vs. Cenzon, 5 April
1990; In Re: Petition for Assistance in the Liquidation of
Rural Bank of Bokod, 18 December 2006; Philippine
International Bank v. CA, G.R. No. 115849, January 24,
1996; Vivas v. Monetary Board, G.R. No. 191424,
August 7, 2013

VII. THE BANGKO SENTRAL NG PILIPINAS

A. Responsibilities and Objectives

1. Supervision of Banks
2. Issuance of Regulations
3. Bank Examination
4. Overseeing Compliance
5. Money Function
6. Monetary Policy
7. International Monetary Stabilization

B. Organization of the BSP

1. Composition
2. Qualifications and Disqualifications

FINAL EXAMINATIONS TBA

TEXTBOOKS:

1. Comments and Cases on Credit Transactions by Atty. Hector S. De Leon and Atty. Hector M.
De Leon, Jr.
2. Essentials of Credit Transactions and Insolvency Law by Atty. Timoteo B. Aquino
3. Personal Property Security Act and Related Laws and Jurisprudence on Credit, Insolvency,
Property and Procedure by Dean Jord Jharoah B. Valenton
4. Fundamentals of Banking Law by Atty. Timoteo B. Aquino and Atty. Maria Margaret
Bernadette A. Aquino
5. Instrumentally Yours: A Handbook in Negotiable Instruments Law by Atty. Jonas Florentino
D.L. Cabochan
6. Commercial Law Recap Books 1 and 2 by Atty. Maria Zarah R. Villanueva-Castro

19
POLICIES:

1. Attendance will be checked every meeting.

2. Students who missed an announced quiz will get a grade of 0.
3. Students are prohibited from recording the online class as this is a violation of the intellectual
property rights of the Professor.

Prepared by:

Faculty, College of Law

Approved by:

Atty. Marciano G. Delson

Dean, College of Law

20
 Annex “A”

Module 1:

1. Banco De Oro v. Rizal Commercial Banking Corp., G.R. No. 198756, January 13, 2015
2. Naguiat v. Court of Appeals, G.R. No. 118375, October 3, 2003
3. Spouses Palada v. Solidbank Corporation, G.R. No. 172227, June 29, 2011
4. DBP v. Guarina Agricultural & Realty Dev. Corp., G.R. No. 160758, January 15, 2014
5. Saura Import & Export, Co. v. DBP, 44 SCRA 445, April 27, 1972
6. BPI Investment Corp. v. Court of Appeals, G.R. No. 133632, February 15, 2002
7. Spouses Pio Dato v. BPI, G.R. No. 181873, November 27, 2013
8. Philippine National Bank v. Spouses Tajonera, G.R. No. 195889, September 24, 2014
9. Spouses Ramon Sy and Anita Ng v. Westmont Bank, G.R. 201074, October 19, 2016.
10. Vicente L. Luntao v. BAP Credit Guaranty Corporation, G.R. No. 204412, September 20,
2017
11. Manzano v. Perez, Jr., G.R. No. 112485, August 9, 2001
12. Felix de los Santos v. Jarra, G.R. No. L-4150, February 10, 1910
13. Republic v. Court of Appeals, G.R. No. L-46145, November 26, 1986
14. Producers Bank of the Phils. v. CA, G.R. No. 115324, February 19, 2003
15. Pajuyo v. Court of Appeals, G.R. No. 146364, June 3, 2004
16. Catholic Vicar Apostolic of the Mt. Province v. Court of Appeals, 165 SCRA 515 (1988)
17. Quintos v. Beck, G.R. No. L-46240, November 3, 1939
18. Georgia Osmena-Jalandoni v. Encomienda, G.R. No. 205578, March 1, 2017
19. Philippine National Bank v. James T. Cua, G.R. No. 199161, April 18, 2018
20. Chee Kiong Yam v. Malik, G.R. No. L-50550, October 31, 1979 Patrimonio v. Gutierrez,
G.R. No. 187769, June 04, 2014
21. The Metropolitan Bank and Trust Co. v. Rosales, G.R. No. 183204, January 13, 2014
22. Guingona v. City Fiscal of Manila, G.R. No. L-60033, April 4, 1984, 128 SCRA 577
23. People v. Jose C. Go, et. al., G.R. No. 191015, August 6, 2014
24. Bank of Philippine Islands v. CA, G.R. No. 136202, January 25, 2007
25. Pantaleon v. American Express International, Inc., G.R. No. 174269, May 8, 2009 and
August 26, 2010.
26. Far East Bank and Trust Company v. The Hon. Court of Appeals, G.R. No. 108164,
February 23, 1995
27. Equitable Banking Corp. v. Caldron, G.R. No. 156168, December 14, 2004
28. Aznar v. Citibank, G.R. No. 164273, March 28, 2007
29. Bankard, Inc. v. Feliciano, G.R. No. 141761, July 28, 2006
30. Acol v. Philippine Commercial Credit Card, Inc., G.R. No. 135149, July 25, 2006
31. Louh, Jr. v. Bank of Philippine Islands, G.R. No. 225562, March 8, 2017
32. Bankard, Inc. v. Alarte, G.R. No. 202573, April 19, 2017
33. Siga-an v. Villanueva, G.R. No. 173227, January 30, 2009
34. Mendoza v. Spouses Gomez, G.R. No. 160110, June 18, 2014
35. Silos v. Philippine National Bank, G.R. No. 181045, July 2, 2014
36. Buenaventura v. Metropolitan Bank and Trust Co., G.R. No. 167082, August 3, 2016
37. Spouses Limso v. Philippine National Bank, G.R. Nos. 158622, 169441, 172958, 173194,
196958, 197120, 205463, January 27, 2016
38. Spouses Jonsay v. Solidbank Corporation, G.R. No. 206459, April 6, 2016
39. Security Bank Corporation v. Spouses Rodrigo and Erlinda Mercado, G.R. Nos. 192934
and 197010, June 27, 2018
40. Spouses Pen v. Spouses Julian, G.R. No. 160408, January 11, 2016
41. Lara’s Gifts and Decors, Inc. v. Midtown Industrial Sales, Inc., G.R. No. 225433, August
28, 2019
42. Estores v. Spouses Supangan, G.R. No. 175139, April 18, 2012
43. Land Bank of the Philippines v. Onate, G.R. No. 192371, January 15, 2014
44. Metropolitan Bank and Trust Company v. Chuy Lu Tan, G.R. No. 202176, August 1, 2016
45. The United States v Chua, G.R. No. L-13708, January 29, 1919

21
 46. Versoza v. Bucag, G.R. No. L-8031, October 29, 1955
47. Tolentino v. Sy Chiam, G.R. No. 26085, August 12, 1927
48. Manila Trading and Supply Company v. Tamaraw Plantation Company, G.R. No. L-
22995, February 28, 1925
49. The Bachrach Motor Company, Inc. v. Faustino Espiritu, G.R. Nos. L-28497 and L-28498,
November 6, 1928
50. First Metro Investment Corporation v. Este Del Sol Mountain Reserve, Inc., G.R. No.
141811, November 15, 2001
51. RCG Bus Lines, Inc. v. Master Tours and Travel Corp., G.R. No. 177232, October 11,
2012
52. CA Agro-Industrial Dev. Corp. v. Court of Appeals, G.R. No. 90027, March 3, 1993
53. Triple V Food Services, Inc. v. Filipino Merchants Insurance, G.R. No. 160544, February
21, 2005
54. Sia v. Court of Appeals, G.R. No. 102970, May 13, 1993
55. Baron v. David, G.R. No. L-26948, October 8, 1927
56. Durban Apartments Corp. v. Pioneer Insurance and Surety Corp., G.R. No. 179419,
January 12, 2011
57. YHT Realty Corp. v. Court of Appeals, G.R. No. 126780, February 17, 2005
58. Gonzales v. Gotiong, G.R. No. L-11776, August 30, 1958

Module 2:

1. Madrigal v. Department of Justice, G.R. No. 168903, June 18, 2014

2. Philippine Export and Foreign Loan Guarantee Corp. v. V.P. Eusebio Construction, Inc.,
G.R. No. 140047, July 13, 2004
3. Diamond Builders Conglomeration v. Country Bankers Insurance Corp., G.R. No. 171820,
December 13, 2007
4. Lim v. Security Bank Corp., G.R. No. 188539, March 12, 2014
5. Gilat Satellite Networks, Ltd. v. vs. United Coconut Planter Bank General Insurance Co.,
Inc., G.R. No. 189563, April 7, 2014
6. Baylon v. Court of Appeals, G.R. No. 109941, August 17, 1999
7. Vil-Rey Planners and Builders v. Lexber, Inc., G.R. Nos. 189401 & 189447, June 15, 2016
8. BA Finance Corp. v. Court of Appeals, 211 SCRA 112 (1992)
9. Philippine National Bank v. Luzon Surety Co., Inc., 68 SCRA 207 (1975)
10. Republic v. Court of Appeals, G.R. No. 10373, March 13, 2001
11. Bitanga v. Pyramid Construction Engineering Corp., 563 SCRA 544 (2008)
12. Prudential Bank v. IAC, 216 SCRA 257 (1992)
13. Philippine National Bank v. Court of Appeals, 147 SCRA 273 (1987)
14. Auto Group v. Intra Strata Assurance Corp., 556 SCRA 250 (1988)
15. Escano v. Ortigas, 256 SCRA 26 (2007)
16. Manila Surety & Fidelity Co., Inc. v. Batu Construction, G.R. No. L- 9353, May 21, 1957

Module 3:

1. Spouses Sierra v. Paic Savings and Mortgage Bank, G.R. No. 197857, September 10, 2014
2. Vitug v. Abuda, G.R. No. 201264, January 11, 2016
3. The Bachrach Motors, Inc. v. Esteva, G.R. No. L- 40233, February 14, 1934
4. Ong v. Roban Lending Corp., G.R. No. 172592, July 9, 2008
5. Nakpil v. IAC, 225 SCRA 456 (1993)
6. Philnico Industrial Corporation v. Privatization and Management Office, G.R. No. 199420,
August 27, 2014
7. Spouses Pen v. Spouses Julian, G.R. No. 160408, January 11, 2016
8. Development Bank of the Phil. v. Court of Appeals, G.R. No. 118242, January 5, 1998
9. Bustamante v. Rosel, G.R. No. 126800, November 29, 1999
10. Philippine National Bank v. Amores, G.R. No. L- 54551, November 9, 1987
11. Sps. Gonzales v. GSIS, G.R. No. L-51997, September 10, 1981
12. Bank of Philippine Islands v. Vda. De Coscolluela, G.R. No. 167724, June 27, 2006

22
 13. Spouses Viola v. Equitable PCI Bank, Inc., G.R. No. 177886, November 27, 2008, 572
SCRA 245
14. Prudential Bank v. Alviar, G.R. No. 150197, July 28, 2005
15. Vda. de Delfin v. Dellota, G.R. No. 143697, January 28, 2008
16. Erena v. Querrer-Kauffman, G.R. No. 165853, June 22, 2006
17. Cavite Development Bank v. Spouses Lim, G.R. No. 131679, February 1, 2000
18. Agag v. Alpha Financing Corp., G.R. No. 154826, July 31, 2003
19. Luntao v. BAP Credit Guaranty Corp., G.R. No. 204412, September 20, 2017
20. Spouses Ellis R. Miles and Carolina Ronquillo-Miles v. Bonnie Bautista Lao, G.R. No.
209544, November 22, 2017
21. Spouses Teves v. Integrated Credit & Corporate Services, Co., G.R. No. 216714, April 4,
2018
22. Security Bank Corporation v. Spouses Mercado, G.R. No. 192934 and 197010, June 27,
2018
23. Diego v. Fernando, G.R. No. L-15128, August 25, 1960
24. Velencia v. Alcala, G.R. No. 16256, September 28, 1921
25. Enriquez v. National Bank, 55 Phil. 414
26. Spouses Reyes v. Heirs of Malance, G.R. No. 219071, August 24, 2016
27. Verzosa v. Bucag, G.R. No. L-8031, October 29, 1955
28. Cotoner-Zacarias v. Revilla, 740 SCRA 51 (2014)

Module 4:

1. Pacific Farms, Inc. v. Esguerra, G.R. No. L-21783, November 29, 1969
2. Yngson, Jr. v. Philippine National Bank, G.R. No. 171132, August 15, 2012
3. DBP v. Secretary of Labor, G.R. No. 79351, November 28, 1989
4. DBP v. NLRC, G.R. No. 86227, January 19, 1994
5. Associated Labor Unions v. Court of Appeals, G.R. No. 156882, October 31, 2008
6. Strategic Alliance Development Corporation v. Radstock Securities, Ltd., G.R. No.
178158, December 4, 2009
7. Republic v. Peralta, G.R. No. L-56568. May 20, 1987
8. Development Bank of the Philippines v. National Labor Relations Commission, G.R. No.
82763-64, March 19, 1990
9. Philippine Deposit Insurance Corporation v. Bureau of Internal Revenue, G.R. No. 172892,
June 13, 2013
10. Cordoba v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, G.R. No. 146555,
July 3, 2007
11. Philippine Export and Foreign Loan Guarantee Corp. v. Court of Appeals, G.R. No.
118701, December 12, 1995
12. BDO v. International Copra Export Corporation, G.R. Nos. 218485-86 and 218493-97,
April 28, 2021
13. Allied Banking Corp. v. Equitable PCI Bank, G.R. No. 191939, March 14, 2018
14. Metropolitan Bank & Trust Company v. Fortuna Paper Mill & Packaging Corp., G.R. No.
190800, November 7, 2018
15. Philippine Bank of Communications v. Basic Polyprinter and Packaging Corp, G.R. No.
187581, October 20, 2014
16. San Jose Timber Corporation v. SEC, G.R. No. 162196, February 27, 2012.
17. Bank of Philippine Islands v. Sarabia Manor Hotel Corporation, G.R. No. 175844, July 28,
2013
18. Far East Bank and Trust Co. v. UnionBank of the Philippines, G.R. No. 196637, June 3,
2019
19. Bureau of Internal Revenue v. Lepanto Ceramics, G.R. No. 224764, April 24, 2017
20. Trade and Investment Development Corporation of the Philippines v. Philippine Veterans
Bank, G.R. No. 233850, July 1, 2019
21. Dela Torre v. Primetown Property Group, Inc., G.R. No. 221932, February 14, 2018
22. Land Bank of the Philippines v. Polillo Paradise Island Corp., G.R. No. 211537, December
10, 2019

23
23. La Savoie Development Corp. v. Buenavista Properties, Inc., G.R. Nos. 200934-35, June
19, 2019
24. Bustos vs. Millians Shoe, G.R. No. 185024, April 24, 2017
25. Alfredo Villamor, Jr. v. John Umale, G.R. No. 172843, September 24, 2014

24