Negotiable Instruments Law (NIL) Syllabus. Ay. Catherine S. Amen Reference: Notes and Cases on Banking Law and Negotiable Instruments Law by Timoteo B. Aquino |. General Consideration a. Governing Law” b. History of NIL c. Functions of Negotiable Instruments ‘Gases: BPI v. Spouses Royeca, GR. No, 176664, 21 July 2008 Firestone Tire & Rubber Company ofthe Phi. v. CA, et al, G.R. No. 113236, 05 March 2001 Cebu interational Finance Corp. v. CA and Alegre, G.R. No, 123031, 12 October 1999 Papa v. A.U, Valencia and Co., etal, GR. No. 105188, 23 January 1988 d. Features of Negotiable Instruments e. Kinds of Negotiable Instruments f. Parties to Negotiable Instruments g._ Distinguished from Non-Negotiable Instruments (Case: Sesbrefiov. CA, etal, GR. No. 68252, 24 May 1963 h. Incidents or Stages in the Life of a Negotiable Instrument Il. Negotiability a. How to Determine Negotiability b. Effect of Estoppel c._Requisites of Negotiability ‘Gases: Frsione Tire & Rubber Company ofthe Phi v. CA, ef af, GR. No. 113296, 05 March 2001 Caltex (Phifppines), Inc. v. CA and Secunty Bank, GR. No. 97753, 10 August 4992- — ~ ~~ Metrobank v. CA, e al, G R. No. 88866, 18 February 1981 Philppine Education Co, Inc. v. Soriano tal, GR. No. L-22406, 30 June 1971 i. Must be in Writing signed by the maker or drawer ii, Must contain an Unconditional Promise or Order to Pay a Sum Certain in Money ili, Payable on Demand or at a Fixed or Determinable Future Time iv. Payable to Order or Bearer ‘Gases: PNB v. Rodriguez and Rodriguez, GRR.No, 170825, 28 September 2008 ‘AngTekLian v. CA, G.R. No. L-2516, 25 September 1950 v. Identification of the Drawee d._ Omissions and Provisions that Do Not Affect Negotiability Case: Tao v. Espe0), ef al, GIR. No. 161756, 16 December 2005Ill. Interpretation of Instruments a. Rules that Apply in Case of Ambiguity ‘Cases: Spouses Evangelista v. Mercator Finance Corp., et al, G.R. No. 148864, 21 August 2003 GR. No, 128927, 14 September 1998 , GR No, 112885, 21 Apr 1999 IV. Transfer and Negotiation a. Modes of Transfer b._How Negotiation Takes Place ‘Case: BPI. CA, ef al, GR.No. 136202, 25 Janvary 2007 c._Indorsement ‘Gase: Far East Bank v. Gold Palace Jewellery Co, GR.No. 168274, 20 August 2008 d. Negotiation by Prior Party e. Striking Out of Indorsement f. Consideration for Issuance and Subsequent Transfer V. Holders a. Rights of Holders in General b._Holders in Due Course ‘Gases: Dino v. JudatLoot etal, GR-No, 170812, 19 Apri 2070 ‘Spouses Violago v. BA Finance Corp. tal, G.R. No. 158262, 21 July 2008 Hi-Coment Cop. v. Insular Bank of Asia and America, GR. No. 132403, 28 September 2007 Yang v. CA, etal, G.R. No. 138074, 15 August 2003 ‘Atrium Management Corp. v. CA, G.R. No. 109491, 28 February 2001 ‘Mesina v IAC, etal, G.R. No. 70145, 13 November 1988 Vicente R. De Ocampo8 Co. . Gatchalian, et al, G.R. No. L-15126, 30 November 1961 i, Rights of Holders in Due Course c. Shelter Rule d. Rights of Holder in Bills in Set VI. Parties Who Are Liable a._ Maker ‘Case: Astro Elecronics Corp. and Roxas v Philppine Export and Foreign Loan Guarantee Corp, GR. No. 136728, 23 September 2003 b. Drawer c. Acceptor ‘Cases: Far East Bank v. Gol Palace Jewlery Co, GR. No. 768274, 20 August 2008 PPhilppine Commercial Intemational Bank v. CA, et al, GR. No. 121413, 29 January 2001d._Indorser ‘Gases: Metrobank v. BA Finance and Malayan insurance Co., GR. No. 179962, 08 December 2008 ‘Alied Banking Corporation v. Lim Sio Wan, Metrobank, GR. No. 133179, 27 March 2008 Metrobank v. Phiippine Bank of Communications, et al, G.R. No, 141408, 18 October 2007 Gonzales v. RCBC, GR. No. 156294, 29 November 2008 BPI v. CA and Napiza, GR. No. 112382, 29 February 2000 ‘Sapierav. CA and Sua, GR. No. 128827, 14 September 1989 ‘Metropol (Bacolod) Financing & Investment Corp. v. Sambok Motors, GR. No, \-39641, 28 Feb. 1983 e. Persons Negotiating by Delivery f._ Agent. Cases: Sofdbank Corp. v. Mindanao Ferroaloy Corp etal, GR. No. 163585, 28 ily 2006 Francisco v. CA, etal, GR. No, 116320, 28 November 1999 ‘The Philippine Bank of Commerce v. Aruego, G.R. Nos. L-25896-37, 31 January 1981 g. Accommodation Parties Cases: Agibot v. Santa, GR. No, 185945, 05 December 2012 Gonzales v.Phlppine Commercial and international Bank, etal, G.R. No. 180267, 23 February 2011 Garcia v, Lamas, G.R. 154127, 08 December 2003 ‘Agro Conglomerates, Inc. and Soriano v. CA tal, G.R. No. 117660, 18 December 2000, Travel-On, Inc. v. CA and Miranda, G.R. No. L-56168, 26 June 1962 ‘telco Marketing Corp. v. CA, eta, G.R. No. 96160, 17 June 1982 V. GA, etal, GR. No, 80599, 15 September 1969 ‘Sadaya v. Seva, G R. No. L-17845, 27 Api 1967 Vil.Defenses a. Minority and Other Causes of Incapacity b. Non-Delivery and Conditional Delivery Gases: RCBC v. HeTi Development Corp. and Luz Bakunawa, GR. Wo. 792413, 13 June 2012 Bank of America NT & SA v. Philippine Racing Club, G.R. No. 10228, 0 July 2008 yv. People, GR. No. 158312, 14 November 2008 Development Bank of Rizal v. Sima Wei, otal, GR. No, 85419, 09 March 1983 c. Filling Up Blanks Beyond Authority d. Fraud e._ Material Alteration Cases: Metrobank v. Cabo, GR. No. 154468, 06 December 2008 ‘The Intemational Corporate Bank, Inc. v. CA, et al, GR. No. 128810, 05 September 2006, PNB. CA, et al, GR. No. 107508, 25 Api 1906 Montinolav. PNB, etal, GR. No. L-2861, 26 February 1954 f. Ante-Dating or Post-Dating g. Insertion of a Wrong Date h. Absence or Failure of Consideration i, Duress and Intimidation j. Megality k. Prescriptionlak and Want of Authorit ‘Cases: Samsung Construction Company v. Far East Bank, etal, GR. No, 12001 ‘BP! v. CASA Montessor'Intemationale, eal, G.R. No, 149454, 28 May 2004 ltusoiov. CA and Manila Banking Cop, GR. No. 139130, 27 November 2002 Westmont Bank (formerly Associated Banking Corp) v. Ong, GR. No, 132560, 30 January 2002 Philppine Commercial Intemational Bank v. CA eal, GR. No. 121413, 29 January 2001 ‘Associated Bank v. CA, etal, G.R. No. 107382, 31 January 1998 Gempesaw v. CA and Phil. Bank of Communications, GR. No.92244, 09 February 1993 ‘Republic Bank v. CA and First National ity Bank, G.R. No. 42725, 22 Apri 1981 ‘Banco de Oro Savings and Mortgage Bank v. Equitable Banking Corp, etal, G.R. No. 74917, 20 sanuary 1988 [MWS v. CA and PNB, G.R. No, 62943, 14 July 1966 ‘Metrobank v. The Fist National Cy Bank and CA, G.R. No. L-55079, 19 November 1982 Jsi-Ali Corp. v. BPI, G.R. No. -29432, 06 August 1975 Republi Bank v Ebrada, GR, No. L-40796, 31 July 1975 ‘August 2004 Vill. Enforcement of Liability ‘a. Steps to Charge the Parties Liable b._ Presentment for Payment Cases: The infematonal Corporate Bank v. Spouses Gueca, GR. No. 141068, 12 February 2007 Wong v. CA and People, G.R, No. 117857, 02 February 2001 c._Presentment for Acceptance (Case: Prudential Bank v. IAC, G.R. No. 74888, 08 December 1992 d. Acceptance e._Notice of Dishonor ‘Cases: Gonzales v. Philippine Commercial and infematonal Bank, of al, GIR No 160267, 23 Februaty 2017 ‘Lopez v. People, GR. No. 186810, 26 June 2008 State Investment House, Inc. v. CA and Moule, GR. No. 101168, 11 January 1993 f__Rules Regarding Foreign Bills Cases: Velasquez v. Soldbank Corp, GIR. No. 157308, ZB March 2008 BPI. CIR, GR. No, 137002, 27 July 2008 Aled Benking Corp. v. CA etal, G.R. No. 125851, 11 July 2006 IX. Discharge a. Discharge of Persons Primarily Liable i, Payment in Due Course Renunciation lii,_ Cancellation (Case: State Investment House, ine. CA and Moule, GIR. No, 101763, 1 January 1683 iv._Acts that Discharge Simple Contracts Case: Salazar v. J. Brothers Marketing Corp, GIR. No. 177998, 20 October 2010v. Principal Debtor Becomes the Holder b. Discharge of Persons Secondarily Liable i. Discharge of Prior Party li. Tender of Payment ili, Release of Principal Debtor iv. Extension of Term X. Checks a. Kinds of Checks i._Cashier's and Manager's Checks Ca Taegan CUR. GN. 2413 13 aa sor Equtable PCI Bank v. Ong, GR. No, 186207, 15 September 2008 li, Certified Checks ili_ Crossed Checks Cases: Salazar v. LY. Brothers Marketing Corp, GR. No. 171888, 20 October 2070 Bank of America v. Associated Citzens Bank, etal, GR. No. 161001, 21 May 2008 People v. Reyes and Reyes, GR No. 154159, 31 March 2006 Bataan Cigar and Cigarette Factory, In. v. CA, etal, G.R. No, $3048, 03 March 1994 iv. Memorandum and Travellers Checks. b. Checks and Ordinary Bills of Exchange Distinguished c._Relationship between Payee, Drawee and Drawer Cases: Villanueva v. Nite, G.R. No. 148211, 25 July 2006 Tan v. CA and RCBC, G.R. No. 108555, 20 December 1994 Citytrust Banking Corp. v. IAC and Herrero, G.R. No, 84281, 27 May 1994 d. Collection of Checks e. Stopping Payment i, Iron Clad Rule f._Crimes Involving Checks ‘Case: Macalalagv. People, GR. No, 164358, 20 December 2006 XI. Special Lectures (Non-NIL Topics) a. Warehouse Receipts Law (Act No. 2137) b. Trust Receipts Law (PD No. 115) c. Letters of Credit