Professional Documents
Culture Documents
diligence are required since they are imbued with public interest, failing which
renders the mortgagees in bad faith. Thus, before approving a loan application, it is
a standard operating practice for these institutions to conduct an ocular inspection of
the property offered for mortgage and to verify the genuineness of the title to
determine the real owner(s) thereof.
Alano v. Planter's Development Bank, G.R. No. 171628, June 13, 2011, 651 SCRA
766, 774.
SECTION 17. Liability of officers for loans contrary to law. No Association shall
make or purchase any loan or investment not authorized or permitted under this
Act, and any trustee, officer or employee, who on behalf of any such Association,
knowingly makes or purchases any such loan or investment or who knowingly
consents thereto shall be personally liable to the Association for the full amount of
any such loan or investment.