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Syllabus

CourseTitle

CREDITTRANSACTIONS

CourseCredit
Prerequisites
Prerequisitesto
TypeofCourse
Faculty

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Three(3)units
Obligations&Contracts
None
MajorSubject
Atty.CrisostomoA.Uribe

CourseDescription :
CreditTransactionsbasicallyiscoveredbyBookIV,TitlesXI,XII,XV,XVI&XIXoftheCivilCodeof
thePhilippines.Itdealswiththebasicprinciples,rightsandobligationsofthepartiestotransactions
involving credit including the accessory contracts; and the modes of extinguishment of these
transactions.

CourseObjectives
1.
2.
3.
4.

Understandthebasicprinciplesapplicabletotransactionsinvolvingcredit.
Identifytherightsandobligationsofpartiestothesetransactions.
Appreciateandapplythesefundamentalprinciplestoactualbusinesstransactions.
Encouragediligenceandtheobservanceofhonestyandfairdealingsatalltimes.

CourseOutline

I. CreditTransactions
A. Credit,defined
B. CreditTransactions,defined
C. DistinguishedfromBailments,SecuredTransactions
D. ScopeofCreditTransactions

II. Loan
Arts.19331961,765,1175,1980,1413NCC
ActNo.2655,UsuryLaw
CBCirculars416and905
Art.12491250NCC,RA529,RA8183
A. Definition
B. KindsofLoan
1.Commodatum
2.MutuumorSimpleLoan
C. Nature/Characteristics
CatholicVicarApostolicv.CA,165SCRA515(1988)
Republicv.Bagtas,6SCRA262(1962)
SauraImport&Exportv.DBP(1972)
Herrerav.PetrophilCorp.,146SCRA385
IntegratedRealtyCorpv.PNB,174SCRA295(1989)
D. SubjectMatter
Republicv.CA,146SCRA15(1986)
Quintosv.Beck,69Phil108(1939)
Republicv.Grijaldo,15SCRA638(L20240,Dec.31,1965)
E. Rights&ObligationsofBailor&Bailee(Lender&Borrower)
DelosSantosv.Jarra,15Phil147(1910)
Minav.Pascual,25Phil540(1913)
Brionesv.Cammayo,41SCRA404(1971)
Lopezv.delRosario,44Phil98(1922)
Zobelv.CityofManila,47Phil169(1925)
Reforminav.Tomol,139SCRA260(1985)
LiamLawv.OlympicSawmillCo.,129SCRA439(1984)
BancoFilipinov.Navarro,152SCRA346(1987)

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PNBv.IACandMaglasang,183SCRA133(1990)
PNBv.CAandPadilla,196bSCRA536(1991)
PNBv.CAandFernandez,238SCRA80(1994)
Florendov.CA,265SCRA678(1996)
F. ModesofExtinguishment

III. Deposit
Arts.19622009NCC
ActNo.2137,WarehouseReceiptsLaw
ActNo.3893,BondedWarehouseAct
PDNO.115,TrustReceiptsLaw
A. Definition
BPIv.IAC,164SCRA630(1988)
B. KindsofDeposit
C. Nature/Characteristics
BPIv.CA,232SCRA302(1994)
Serranov.CB,96SCRA96(1980)
LuaKianv.ManilaRailroad,19SCRA5(1967)
D. SubjectMatter
E. Rights&ObligationsofDepositorandDepositary
Javellanav.Lim,11Phil141(1908)
Baronv.David,51Phil2(1927)
Vintolav.IBAA,150SCRA578,G.R.#73721May29,1987
Siav.People,121SCRA661(1983)
Gonzalesv.GoTiongandLuzonSurety,104Phil492(1958)
ConsolidatedTerminalsv.ArtexDevelopmentCo.,63SCRA46(1975)
F. ModesofExtinguishment
RomanCatholicBishopv.delaPena,26Phil144(1913)

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IV. GuarantyandSuretyship
Arts.20472084
A. Definition
ImperialInsurance,Inc.v.DelosAngeles,111SCRA24(1982)
Machettiv.HospiciodeSanJose,43Phil297(1922)
Castellviv.Sellner,41Phil142(1920)
B. Nature/Characteristics/Extent
Severinov.Severino,56Phil187(1931)
Wise&Co.v.Tanglao,63Phil372(1936)
ManilaSurety&Fidelityv.Almeda,34SCRA136
RCBCv.Arro,115SCRA777(1982)
Republicv.PalFoxLumberCo.,43SCRA365(1972)
C. EffectsofGuaranty
1.BetweentheGuarantorandtheCreditor
2.BetweentheGuarantorandtheDebtor
3.BetweenCoGuarantors
SouthernMotors,Inc.v.Barbosa,99Phil263(1956)
CentralSuretyandInsurancev.Ubay,135SCRA58(1985)
ManilaSurety&Fidelityv.Almeda,34SCRA136(1970)
AssociatedInsurance&SuretyCo.,Inc.v.Bacolod,105Phil246(1959)
D. ModesofExtinguishment

V. ProvisionscommontoPledgeandMortgage
Arts.20852092
RuralBankofCaloocan,Inc.v.CA,104SCRA151(1981)
Vda.DeBautistav.Marcos,3SCRA434(1961)
Dayritv.CA,36SCRA549(1970)

VI. Pledge
Arts.20932123NCC
A. Ingeneral
1.Definition&Purpose
2.KindsofPledge
3.CharacteristicsofPledge
4.ExtentofthePledge

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B. EssentialRequisites
FormalRequisite
Yuliongsiuv.PNB,22SCRA585(1968)
ManilaSurety&Fidelityv.Velayo,21SCRA515(1967)
C. RightsandObligationsofthePledgor[DebtororThirdPerson]
PactumCommissorium
D.RightsandObligationsofthePledgee[Creditor]
IndivisibilityofPledge
E. ModesofExtinguishment

VII. ChattelMortgage
Arts.21402141,14841485NCC
ActNo.1508,ChattelMortgageLaw(1906)
Art.319,RPC
A. Ingeneral
1.Definition&Purpose
2.CharacteristicsofCM
3.ExtentoftheMortgage
B. EssentialRequisites
FormalRequisite;AffidavitofGoodFaith
Piansayv.David,12SCRA227(1964)
MakatiLeasingandFinanceCorpv.WeareverTextile,122SCRA296(1983)
C. RightsandObligationsoftheMortgagor[DebtororThirdPerson]
PactumCommissorium
D. RightsandObligationsoftheMortgagee[Creditor]
IndivisibilityofMortgage
NorthernMotors,Inc.v.Coquia,68SCRA374(1975)
E. ModesofExtinguishment

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VIII. RealEstateMortgage
Arts.21242131NCC
Rule68,RulesofCourt(ForeclosureofREM)
Act.No.3135,asamendedbyActNo.4118[ExtrajudicialForeclosureofMortgage]
PD694,ThePNBAct
RA85,asamended,TheDBPAct
PD1529,Sec.63
A. Ingeneral
1.Definition&Purpoose
2.KindsofREM
Lanuzav.deLeon,20SCRA369(1967)
Bundalianv.CA,129SCRA645(1984)
3.CharacteristicsofREM
4.Effectsofmortgage
B. EssentialRequisites
FormalRequisite
C. RightsandObligationsoftheMortgagor[DebtororThirdPerson]
PactumCommissorium
Redemption
Rosalesv.Yboa,120SCRA869(1983)
Tiosecov.CA,143SCRA705(1986)
Dulayv.Cariaga,123SCRA794(1983)
PNBv.CA,140SCRA360(1985)
D. RightsandObligationsoftheMortgagee[Creditor/JuniorMortgagee]
IndivisibilityofMortgage
Foreclosure
DBPv.Mirang,66SCRA141(1975)
Cov.PNB,114SCRA842(1982)
AlphaInsuranceandSuretyv.Reyes,106SCRA274(1981)
E. RightsandObligationsofthePurchaser
MarceloSteelCorp.v.CA,54SCRA89(1973)
PNBv.Adil,118SCRA110(1982)
Ocampov.Domalanta,20SCRA1136(1967)
F. ModesofExtinguishment

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IX. Antichresis
Arts.21322139NCC
A. NatureandCharacteristics
B. RightsandObligationsoftheDebtorandCreditor

Samontev.CA,141SCRA189(1986)

Ramirezv.CA,144SCRA292(1986)

IX. ConcurrenceandPreferenceofCredit
Arts.22362251NCC
ActNo.1956,asamended,InsolvencyLaw
A. GeneralProvisions
B. ClassificationofCredits
C. OrderofPreferenceofCredits

Romanv.AsiaBankingCorp.,46Phil705(1922)
CentralBankv.Morfe,63SCRA114(1975)

PresribedTextbook:
HectorS.DeLeon,CommentsandCasesonCreditTransactions,EighthEdition,RexPrintingCompany,
Inc.2010

References:
1. ArturoM.Tolentino,Commentaries&JurisprudenceontheCivilCodeofthePhilippines,Vol.5,Central
LawBookPub.,1987

TeachingMethods/Strategies
Aquestionandanswerformatwillbasicallybeemployedtodeterminewhetherthestudentreadand
understoodtheprovisionsofthelawandthedecisionsoftheSupremeCourt.Quizzeswillalsobe
administeredtocheckknowledge,understandingandtheanalyzingskillsofthestudents.Lectures,
groupdiscussionsandvisualaidsmaybeusedwhenapplicable.

GradingCriteria:
MidTermExam
Recitation&Quizzes
FinalExam

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30%
50%