P.C. Javier & Sons vs.

CA 462 SCRA 36
G.R. No. 129552. June 29, 2005


FACTS:
PC Javier & Sons applied with First Summa Bank for a loan accommodation under the industrial
Guarantee Loan Fund (IGLF). The corporation through Pablo Javier was advised that its loan application
was approved and that the same shall be forwarded to the Central Bank for processing. The CB released
the loan. To secure the loan, Javier executed CM over some machinery in favor of the bank. In the
meantime, the bank changed its name to PIAC Savings and Mortgage Bank Inc. Thereafter, the
corporation failed to pay; this prompted the Bank to move for the extrajudicial foreclosure of the
mortgages. PC Javier filed an action to restrain the foreclosure on the ground that First Summa and
PIAC Bank are separate entities.

ISSUE: WON the debtor should be formally notified of the corporate creditors change of name.

HELD: No. there is no such requirement under the law or any regulation ordering a bank that changes
its corporate name to formally notify all its debtors. This being the case, the court cannot impose on the
bank that changes n=its corporate name to notify its debtors of such change absent any law,
discretionary on the bank.