Credit Transactions Course Outline Second Semester, 2013-2014

Introduction. The Concept of Credit A. Credit, Debt and Security B. Credit and Credit Transactions Defined, Republic Act No. 3765, Sec. 3. (2) People v. Concepcion, G.R. No. L-19190, November 29, 1922, 44 Phil 126. C. Commercial Credit Transactions, Code of Commerce, Art. 1 to 3 Loan I. A. The Concept of Loan General Concepts, Art1. 1933, Art. 1305 1. Obligation to Deliver, Art. 1934 Garcia v. Thio, G.R. No. 154878, March 16, 2007, 518 SCRA 433. 2. Object of a Loan, Art. 1933, Art. 418 3. Consideration of a Loan, Art. 1933 4. Obligation to Return or Pay, Art. 1933, Art. 1232, Art. 1233 Contract To Loan, Art. 1934 Saura Import and Export Co. Inc. v. Development Bank of the Philippines, G.R. No. L24968, April 27, 1972, 44 SCRA 445. BPI Investment Corporation v. Court of Appeals and ALS Management & Development Corporation, G.R. No. 133632, February 15, 2002, 377 SCRA 117. Pantaleon v. American Express International, Inc., G.R. No. 174269, August 25, 2010, 629 SCRA 276. Commodatum General Concepts, Art. 1933, Art. 1935, Art. 1939 1. Consideration in Commodatum 2. Object of Commodatum, Art. 1937, Art. 1936 Producers Bank of the Philippines v. Court of Appeals, G.R. No. 115324, February 19, 2003, 397 SCRA 651. Parties to a Commodatum 1. Ownership by Bailor, Art. 1938, Art. 1933 2. Use by Bailee, Art. 1935, Art. 1940, Art. 1939 3. Solidary Liability of Bailees, Art. 1945 Liability for Expenses and Damages 1. Ordinary Expenses, Art. 1933, Art. 1935, Art. 1941, Art. 1943 Pajuyo v. Court of Appeals, G.R. No. 146364, June 3, 2004, 430 SCRA 492. 2. Extraordinary Expenses, Art. 1949 3. Other Expenses, Art. 1950 4. Abandonment by Bailor, Art. 1952 5. Right of Retention by Bailee, Art. 1944, Art. 1951 Liability for Loss, Art. 1933, Art. 1942 Republic v. Bagtas, G.R. No. L-17474, October 25, 1962, 6 SCRA 262. Obligation to Return, Art. 1933, Art. 1946 to 1948 Quintos v. Beck, G.R. No. L-46240, November 3, 1939, 69 Phil 108. Simple Loan General Concepts, Art. 1933, Art. 1953, Art. 1954, Art. 1980, Act No. 2137, Sec. 58 "Fungible goods" People v. Puig and Porras, G.R. No. 173654-765, August 28, 2008, 563 SCRA 564. BPI Family Bank v. Franco, G.R. No. 123498, November 23, 2007, 538 SCRA 184. Obligation to Pay, Art. 1955, Art. 1249, Art. 1250 Interest 1. Conventional Interest, Art. 1933, Art. 1956, Art. 1253, Art. 1958, Art. 1960, Art. 2154, Art. 1423, Act No. 2655, Sec. 1, Central Bank Circular No. 416, series of 1974, Act No. 2655, Sec. 7, Sec. 7-a (as inserted by P.D. No. 1684).

B.

II. A.

B.

C.

D. E. III. A.

B. C.

Unless otherwise indicated, Art. refers to the Articles of the Civil Code
1

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 Frias v. San Diego-Sison, G.R. No. 155223, April 3, 2007, 520 SCRA 244. Concepcion v. Court of Appeals, et al., G.R. No. 122079, June 27, 1997, 274 SCRA 614. Spouses Juico v. China Banking Corporation, G.R. No. 187678, April 10, 2013. (Include Concurring Opinion) Interest on Interest, Art. 1959, Art. 2212 Compensatory, Penalty or Indemnity Interest, Art. 1169, Art. 1226, Art. 2209, Art. 2213, Art. 2226, Art. 2227 Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412, July 12, 1994, 234 SCRA 78 (Ratio Decidendi only) Siga-an v. Villanueva, G.R. No. 173227, January 20, 2009, 576 SCRA 696. Ligutan v. Court of Appeals, G.R. No. 138677, February 12, 2002, 376 SCRA 560. Estores v. Spouses Supangan, G.R. No. 175139, April 18, 2012. Nacar v. Gallery Frames and/or Bordey, G.R. No. 189871, August 13, 2013. Finance Charges, R. A. No. 3765, Sec. 4, Sec. 6 United Coconut Planters Bank v. Samuel and Beluso, G.R. No. 159912, August 17, 2007, 530 SCRA 567. Usury General Concepts, Art. 1175, Art. 1957, Art. 1961, Act No. 2655, Sec. 1, Sec. 1-a, Sec. 4-a, Sec. 4-b, Sec. 5, Sec. 9-a, Central Bank Circular No. 905, Series of 1982, Sec. 1 Advocates for Truth in Lending, Inc. and Olaguer v. Bangko Sentral Monetary Board, G.R. No. 192986, January 15, 2013. Usurious Acts, Act No. 2655, Sec. 2 to 4 Remedies, Art. 1413, Act No. 2655, Sec. 6 to 10 1) Remedy of Debtor 2) Remedy of Creditor

2. 3.

4. 5. a.

b. c.

Deposit I. The Concept of Deposit Art. 1962, Art. 1964, Art. 1967 II. Voluntary Deposit A. General Concepts, Art. 1963, Art. 1968, Art. 1969, Art. 1965, Art. 1966, Art. 1995 Bank of the Philippine Islands v. The Intermediate Appellate Court and Zshornack, G.R. No. L-66826 August 19, 1988, 164 SCRA 630. Triple-V Food Services, Inc. v. Filipino Merchants Insurance Company, Inc., G.R. No. 160544, February 21, 2005. B. Obligation to Safekeep 1. Way of the Deposit, Art. 1974 to 1978, Art. 1981, Art. 1982 CA Agro-Industrial Development Corporation v. Court of Appeals and Security Bank and Trust Company, G.R. No. 90027, March 3, 1993, 219 SCRA 426. The Roman Catholic Bishop of Jaro v. De La Pena, G.R. No. L-6913, November 21, 1913, 26 Phil 144. 2. Liability for Loss and Damage, Art. 1972, Art. 1973, Art. 1977, Art. 1978, Art. 1981, Art. 1979, Art. 1990, Art. 1993 a. Liability of Depositary b. Liability of Depositor 3. Liability for Expenses, Art. 1992 C. Obligation to Return 1. By Whom and To Whom, Art. 1972, Art. 1970, Art. 1971, Art. 1984, Art. 1985, Art. 1212, Art. 1214, Art. 1986, Art. 1991 2. What to Return, Art. 1983, Art. 1896 3. Where to Return, Art. 1987 4. When to Return, Art. 1988, Art. 1989 5. Right of Retention, Art. 1994 III. Necessary Deposit A. General Concepts, Art. 1964, Art. 1967, Art. 1996, Art. 1966 B. Examples of Necessary Deposit

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 1. Compliance with a Legal Obligation, Art. 1996, Art. 1997 2. On the Occasion of a Calamity, Art. 1996, Art. 1997, Art. 2168 3. Passenger Baggage with Common Carriers, Art. 1754 4. Hotels or Inns, Art. 1998 to 2004 YHT Realty Corporation v. Court of Appeals, G.R. No. 126780, February 17, 2005, 451 SCRA 638. Judicial Deposit Art. 1964, Art. 2005 to 2009 Warehouse Receipts General Concepts, Act No. 2137, Sec. 1 to 7 Obligations and Rights of a Warehouseman 1. Obligation to Deliver, Act No. 2137, Sec. 8 to 19, Sec. 36, Sec. 58 2. Liability for Goods, Sec. 20 to 26 3. Warehousemans Lien, Sec. 31 to 36 Negotiation and Transfer, Sec. 37 to Sec. 49 Criminal Liability, Sec. 50 to Sec. 55 General Bonded Warehouses, Act No. 3893, as amended Philippine National Bank v. Se et al., G.R. No. 119231. April 18, 1996, 256 SCRA 380.

IV. V. A. B.

C. D. E.

Security Transactions I. The Concept of Security A. General Concepts 1. Distinguished from Securities, R. A. No. 8799, Sec. 3.1 2. Distinguished from Securitization B. Events of Default C. Kinds of Security Transactions 1. Personal Security Transactions 2. Real Security Transactions 3. In the Context of Insolvency, R.A. No. 10142, Sec. 4 (p) (ll) (kk) (jj) (qq) (pp) (t) II. Letters of Credit A. General Concepts, Code of Commerce, Art. 567, Art. 568, Art. 2 Transfield Philippines, Inc. v. Luzon Hydro Corporation Australia, et al., G.R. No. 146717, November 22, 2004, 443 SCRA 307. B. Kinds of Letters of Credit 1. Commercial Letters of Credit 2. Standby Letters of Credit C. Rule of Strict Compliance D. Independence Principle III. Trust Receipts A. General Concepts, P.D. No. 115, Sec. 3, Sec. 4 B. Form of Trust Receipts, Sec. 5, Sec. 6 C. Rights of Entruster, Sec. 7, Sec. 8 D. Obligations of Entrustee, Sec. 9 to 13 E. Rights of Purchaser, Sec. 11 Colinares & Veloso v. Court of Appeals, G.R. No. 90828, September 5, 2000, 339 SCRA 609. IV. Guaranty A. General Concepts, Art. 2047, Art. 2048, Art. 2051 B. Form of Guaranty, Art. 2055, Art. 1403 C. Obligations Secured, Art. 2052 to 2054 D. Parties to a Guaranty, Art. 2056. Art. 2057, Art. 2049, Art. 2064, Art. 2065 E. Benefit of Excussion, Art. 2058 to 2064, Art. 2081 Tupaz IV & Tupaz v. Court of Appeals & Bank of the Philippine Islands, G.R. No. 145578, November 18, 2005, 475 SCRA 398. F. Right to Protection, Art. 2071 G. Right to Indemnification, Art. 2066, Art. 2050, Art. 1236, Art. 2069, Art. 2070, Art. 2072

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 H. I. J. V. A. B. C. D. E. Right to Subrogation, Art. 2067, Art. 2050, Art. 1237, Art. 2068, Art. 2080 Rights of Co-Guarantors 1. Benefit of Division, Art. 2065, Art. 2078 2. Right to Reimbursement, Art. 2073 to 2075 Extinguishment and Right of Release, Art. 2076, Art. 2077, Art. 2079, Art. 2080 Surety General Concepts, Art. 2047, Art. 1211, Art. 1216,Art. 2082 to 2084 Form of Surety, Art. 1403 Obligations Secured, Art. 2053 Security Bank & Trust Company v. Cuenca, G.R. No. 138544. October 3, 2000, 341 SCRA 781. Distinguished from Standby Letter of Credit Distinguished from Guaranty, Art. 2047 Palmares v. Court of Appeals & M.B. Lending Corporation, G.R. No. 126490, March 31, 1998, 288 SCRA 422. E. Zobel, Inc. v. Court of Appeals, G.R. No. 113931, May 6, 1998, 290 SCRA 1. International Finance Corporation v. Imperial Textile Mills, Inc., G.R. No. 160324, November 15, 2005, 475 SCRA 149. Philippine Blooming Mills, Inc. & Ching v. Court of Appeals, G.R. No. 142381, October 15, 2003, 413 SCRA 445. Distinguished from Joint and Solidary Obligations, Art. 2047, Art. 2066, Art. 2067, Art. 1217 Escano & Silos v. Ortigas, Jr., G. R. No. 151953, June 29, 2007, 526 SCRA 26. Pledge and Mortgage General Concepts, Art. 2085, Art. 2087 Obligations Secured, Art. 2086, Art. 2052, Art. 209 Contract to Pledge or to Mortgage, Art. 2092 Remedies of Pledgee and Mortgagee Indivisibility of a Pledge or Mortgage, Art. 2089, Art. 2090 Pactum Commissorium, Art. 2087, Art. 2088 1. Elements 2. Effect on Pledge or Mortgage Development Bank of the Philippines v. Court of Appeals, G.R. No.118342, January 5, 1998, 284 SCRA 14. Bustamante v. Rosel, G. R. No. 126800, November 29, 1999, 319 SCRA 413. Ong v. Roban Lending Corporation, G.R. No. 172592, July 9, 2008, 557 SCRA 516. Equitable Mortgage, Art. 1602 to 1605 Pledge General Concepts, Art. 2085, Art. 2087, Art. 2123 Form of Pledge, Art. 2096 Obligations Secured Object of Pledge, Art. 2094, Art. 2095, Art. 416, Art. 417 Ownership of Collateral, Art. 2103, Art. 2102, Art. 2101, Art. 1951, Art. 2108, Art. 2112, Art. 2097 Estate of Litton v. Mendoza & Court of Appeals, G.R. No. L-49120, June 30, 1988, 163 SCRA 246. Rights of Third Party Pledgor, Art. 2120, Art. 2117, Art. 2066 to 2070, Art. 2079 to 2081 Right to Possession, Art. 2093, Art. 2110 1. Right of Retention, Art. 2098, Art. 2109, Art. 2099, Art. 2100, Art. 2104, Art. 2106 2. Right to Payment, Art. 2102, Art. 2118 Manila Banking Corporation v. Teodoro, Jr. and Teodoro, G.R. No. 53955, January 13, 1989, 169 SCRA 95. (Include Concurring Opinion) Chu v. Court of Appeals et al. G.R. No. L-78519, September 26, 1989. Citibank, N.A. & Investors Finance Corporation v. Sabeniano, G.R. No. 156132, October 12, 2006, 504 SCRA 378. Return of Collateral, Art. 2105, Art. 2107, Art. 2108, Art. 2110, Art. 2111 Foreclosure of Pledge, Art. 2112, Art. 2119

F. VI. A. B. C. D. E. F.

G. VII. A. B. C. D. E.

F. G.

H. I.

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 1. Who May Bid, Art. 2113, Art. 2114 2. Effect of Notarial Sale a. Extinction of Principal Obligation, Art. 2115, Art. 2116 b. Right of Redemption Paray & Espeleta v. Rodriguez, et al., G.R. No. 132287, January 24, 2006, 479 SCRA 571. c. Right to Surplus or Deficiency, Art. 2115 J. Legal Pledges, Art. 2121 1. Examples of Legal Pledges, Art. 1944, Art. 1951, Art. 1994, Art. 2004, Art. 546, Art. 1731 2. Foreclosure of Legal Pledge, Art. 2122, Art. 2121 VIII. Chattel Mortgage A. General Concepts, Art. 2085, Art. 2087, Art. 2140, Art. 2141 PCI Leasing & Finance, Inc. v. Trojan Metal Industries Inc., et al., G.R. No. 176381, December 15, 2010, 638 SCRA 615. B. Form of Chattel Mortgage, Act No. 1508, Sec. 4 to 6 C. Obligations Secured, Act No. 1508, Sec. 5 ACME Shoe, Rubber & Plastic Corporation v. Court of Appeals, G.R. No. 103576, August 22, 1996, 260 SCRA 714. D. Object of Chattel Mortgage, Art. 2124, Art. 416, Art. 417, Act No. 1508, Sec. 2 Makati Leasing & Finance Corporation v. Wearever Textile Mills, Inc. & Court of Appeals, G.R. No. L-58469, May 16, 1983, 122 SCRA 296. 1. Reasonable Description Rule, Act No. 1508, Sec. 7 2. After Acquired Properties, Act No. 1508, Sec. 7 E. Ownership of Collateral Dy v. Court of Appeals, G.R. No. 92989, July 8, 1991, 198 SCRA 826. F. Foreclosure of Chattel Mortgage, Act No. 1508, Sec. 8, Sec. 14, A.M. No. 99-10-05-0 1. Equity of Redemption, Act No. 1508, Sec. 13, Sec. 14 2. Right of Redemption Rizal Commercial Banking Corporation v. Royal Cargo Corporation, G.R. No. 179756, October 2, 2009, 602 SCRA 545. 3. Right to Possession Servicewide Specialists, Inc. v. Court of Appeals, G.R. No. 110048, November 19, 1999, 318 SCRA 493. 4. Right to Surplus or Deficiency, Act No. 1508, Sec. 14 PAMECA Wood Treatment Plant, Inc. v. Court of Appeals, G.R. No. 106435, July 14, 1999, 310 SCRA 281. IX. Real Estate Mortgage A. General Concepts, Art. 2085, 2087 B. Form of Real Estate Mortgage, Art. 2125, Art. 2131 C. Obligations Secured Prudential Bank v. Alviar & Alviar, G.R. No. 150197, July 28, 2005, 464 SCRA 353. D. Object of Real Estate Mortgage, Art. 2124, 415 1. After Acquired Properties Peoples Bank & Trust Company & Atlantic Gulf and Pacific Co. of Manila v. Dahican Lumber Company, et al., G.R. No. L-17500, May 16, 1967, 20 SCRA 84. 2. Effect and Extent, Art. 2126, Art. 2127, Art. 2129 Star Two (SPV-AMC), Inc. v. Paper City Corp. of the Phil. , G.R. No. 169211, March 06, 2013. E. Right to Alienate Real Estate Mortgage Credit, Art. 2128, Art. 1625, Art. 1627 F. Right to Alienate Collateral, Art. 2085, Art. 2130 Garcia v. Villar, G.R. No. 158891, June 27, 2012. G. Foreclosure of Real Estate Mortgage 1. Judicial Foreclosure a. Complaint for Foreclosure, Rules of Court, Rule 68, Sec. 1 b. Judgment on Foreclosure, Rules of Court, Rule 68, Sec. 2 Korea Exchange Bank v. Filkor Business Integrated, Inc., et al., G.R. No. 138292, April 10, 2002, 380 SCRA 381.

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 c. Equity of Redemption, Rules of Court, Rule 68, Sec. 2 d. Foreclosure Sale, Rules of Court, Rule 68, Sec. 3 to 5, Sec. 7, Sec. 8, Rule 39, Sec. 31, Sec. 32, Sec. 34 e. Right of Redemption Huerta Alba Resort, Inc. v. Court of Appeals, G.R. No. 128567, September 1, 2000, 339 SCRA 534 f. Right to Surplus or Deficiency, Rules of Court, Rule 68, Sec. 4, Sec. 6, Rule 86, Sec. 7 2. Extrajudicial Foreclosure a. Special Powers, Act No. 3135, Sec. 1 b. Foreclosure Sale, Act No. 3135, Sec. 2, A.M. No. 99-10-05-0, as amended 1) Requirement of Notice Grand Farms, Inc. & Philippine Shares Corporation v. Court of Appeals, et al., G.R. No. 91779, February 7, 1991, 193 SCRA 748. 2) Conduct of Sale, Act No. 3135, Sec. 4, Sec. 5, A.M. No. 99-10-05-0 Spouses Rabat v. Philippine National Bank, G.R. No. 158755, June 18, 2012. c. Right of Redemption, Act No. 3135, Sec. 6, A.M. No. 99-10-05-0 Goldenway Merchandising Corporation v. Equitable PCIBAnk, G.R. No. 195540, March 13, 2013. 1) Who may Redeem, Act No. 3135, Sec. 6, Rules of Court, Rule 39, Sec. 27 Medida, et al. v. Court of Appeals, et al., G.R. No. 98334, May 8, 1992, 208 SCRA 887 2) How to Redeem, Rules of Court, Rule 39, Sec. 28, Sec. 29, Sec. 30, Sec. 33 Spouses Yap v. Spouses Dy, et al., G.R. No. 171991 and 171868, July 27, 2011. d. Right to Deficiency, Rules of Court, Rule 86, Sec. 7 Heirs of the Late Spouses Maglasang v. Manila Banking Corporation, G.R. No. 171206, September 23, 2013. e. Right to Surplus Suico v. Philippine National Bank, G.R. No. 170215, August 28, 2007, 531 SCRA 514. f. Right to Possession 1) During Redemption Period, Act No. 3135, Sec. 7 to 9 2) After Consolidation of Ownership, Rules of Court, Rule 39, Sec. 33 Chu, et al. v. Lacqui & Philippine Bank of Communications, G.R. No. 169190, February 11, 2010. 3) When Held by a Third Party, Rules of Court, Rule 39, Sec. 33, Sec. 16 BPI Family Savings Bank, Inc. v. Golden Power Diesel Sales Center, Inc., G.R. No. 176019, January 12, 2011, 639 SCRA 405. Nagtalon v. United Coconut Planters Bank, G.R. No. 172504, July 31, 2013. Antichresis General Concepts, Art. 2132, Art. 2133, Art. 2135, Art. 2138, Art. 2139, Art. 2085, Art. 2089, Art. 2090, Art. 2091 Form of Antichresis, Art. 2134 Right of Retention, Art. 2136 Foreclosure of Antichresis, Art. 2137 Diego v. Fernando, G.R. No. L-15128, August 25, 1960, 109 Phil 143.

X. A. B. C. D.

Insolvency I. The Concept of Insolvency Art. 2236, Art. 2237, R. A. No. 10142, Sec. 2, Sec. 4, Sec. 146 to Sec. 148 A. Nature of Insolvency Proceedings, R. A. No. 10142, Sec. 3, Sec. 7, Sec. 6 B. Civil and Criminal Liability in Insolvency Proceedings, R. A. No. 10142, Sec. 10, Sec. 145 II. Concurrence & Preference of Credits A. General Concepts, R. A. No. 10142, Sec. 62, Sec. 133 B. Classification of Credits 1. Special Preferred Credits, Art. 2241, Art. 2242, R.A. No. 10142, Sec. 136, Art. 2243, Art. 2246 to 2250 De Barreto, et al. v. Villanueva, et al., G.R. No. L-14938, January 28, 1961, 1 SCRA 288, Resolution on Motion to Consider, December 29, 1962, 6 SCRA 929.

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 Development Bank of the Philippines v. Court of Appeals, G.R. No. 126200, August 16, 2001, 363 SCRA 307. J.L. Bernardo Construction v. Court of Appeals, G.R. No. 105827, January 31, 2000, 324 SCRA 24. 2. Ordinary Preferred Credits, Art. 2244, P. D. No. 442, Art. 110, R. A. No. 10142, Sec. 133, Art. 2251 3. Common Credits, Art. 2245, Art. 2251 Cordova v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, et. al, G.R. No. 146555, July 3, 2007, 526 SCRA 300. Suspension of Payments General Concepts, R.A. No. 10142, Sec. 2, Sec. 94. Sec. 95 1. Automatic Stay, Sec. 96 2. Suspension Order, Sec. 96 3. Injunction Against Debtor, Sec. 95 Commissioner, Sec. 95, Sec. 97 Creditors Meeting, Sec. 97, Sec. 99, Sec. 100 Proposed Agreement, Sec. 94, Sec. 101, Sec. 102 Treatment of Claims, Sec. 96, Sec. 98, Sec. 101 1. Secured Creditor Claims 2. Exempt Claims 3. Excluded Claims Rehabilitation General Concepts, R.A. No. 10142, Sec. 2 Court-Supervised Rehabilitation 1. Voluntary Proceedings, Sec. 12 2. Involuntary Proceedings, Sec. 13, Sec. 14 3. Provisions Common to Voluntary and Involuntary Rehabilitation Proceedings a. Commencement Order, Sec. 15 to 17, Sec. 19, Sec. 21 b. Stay or Suspension Order, Sec. 16, Sec. 20 1) General Concepts Rizal Commercial Banking Corporation v. Intermediate Appellate Court, G.R. No. 74851, December 9, 1999, 320 SCRA 279. Sobrejuanite v. ASB Development Corporation, G.R. No. 165675, September 30, 2005, 471 SCRA 763. Town and Country Enterprises, Inc. v. Quisumbing et al., G.R. No. 173610, October 01, 2012. 2) Exceptions to Stay or Suspension Order, Sec. 18, Sec. 16 Metropolitan Waterworks & Sewerage System v. Daway and Maynilad Water Services, Inc., G.R. No. 160732, June 21, 2004, 432 SCRA 559. Panlilio, et al. v. Regional Trial Court, Branch 51, City of Manila, G.R. No. 173846, February 2, 2011, 641 SCRA 438. c. Subsequent Actions, Sec. 22, Sec. 24 to 27 d. Rehabilitation Receiver 1) General Concepts, Sec. 28 to 30, Sec. 32 to 35, Sec. 40 2) Powers, Duties and Responsibilities, Sec. 47, Sec. 24, Sec. 31, Sec. 39, Sec. 41 e. Creditors Committees, Sec. 42, Sec. 43, Sec. 8, Sec. 9 f. Management Committee, Sec. 47, Sec. 36 to 38 g. Claims, Sec. 4(c) 1) Determination of Claims, Sec. 16, Sec. 44 to 46 2) Treatment of Claims a) Secured Creditor Claims, Sec. 60, Sec. 61 b) Employee Claims, Sec. 56, Sec. 16 c) Excluded Claims, Sec. 23 h. Treatment of Assets, Sec. 47 1) Unencumbered Assets, Sec. 48, Sec. 49, Sec. 52 2) Encumbered Assets, Sec. 17, Sec. 50, Sec. 51, Sec. 53

III. A.

B. C. D. E.

IV. A. B.

Stephanie V. Gomez-Somera

Credit Transactions Course Outline Second Semester, 2013-2014 i. Treatment of Contracts 1) Confirmation or Termination of Contracts, Sec. 57, Sec. 16 2) Avoidance Proceedings, Sec. 58, Sec. 59 j. Rehabilitation Plan 1) General Concepts, Sec. 62, Sec. 54, Sec. 55 2) Cram Down Effect, Sec. 63 to 73 Bank of the Philippine Islands v. Securities & Exchange Commission, et al., G.R. No. 164641, December 20, 2007, 541 SCRA 294. Bank of the Philippine Islands v. Sarabia Manor Hotel Corp., G.R. No. 175844, July 29, 2013 k. Termination of Proceedings, Sec. 74, Sec. 75 l. Conversion to Liquidation Proceedings, Sec. 92 Pre-negotiated Rehabilitation, Sec. 76 to 82, Sec. 92 Out-of-Court Rehabilitation, Sec. 83, Sec. 84. 1. General Concepts 2. Benefits of Out-of-Court Rehabilitation, Sec. 85 to 89 Liquidation General Concepts, Art. 2238 to 2240, R.A. No. 10142, Sec. 2, Sec. 4 Liquidation of Insolvent Individual Debtor 1. Voluntary Liquidation, R. A. No. 10142, Sec. 103, Sec. 104 2. Involuntary Liquidation a. Acts of Insolvency, Sec. 105 b. Show Cause Order; Injunction; Default, Sec. 106, Sec. 107 c. Absent Individual Debtor, Sec. 108 d. Custody of Property; Sale of Property, Sec. 109, Sec. 110 Liquidation of Insolvent Juridical Debtors, Sec. 93 1. Voluntary Liquidation, Sec. 90 2. Involuntary Liquidation Provisions Common to Liquidation of Individual and Juridical Debtors, Sec. 111 1. Liquidation Order, Sec. 112, Sec. 113 2. Liquidator a. General Concepts, Sec. 115 to 118, Sec. 29, Sec. 120, Sec. 122 b. Powers, Duties and Responsibilities, Sec. 119, Sec. 113, Sec. 123, Sec. 126, Sec. 129, Sec. 131, Sec. 132, Sec. 121 3. Claims, Sec. 4(c) a. Determination of Claims, Sec. 112, Sec. 123 to 126 b. Treatment of Claims 1) Secured Creditor Claims, Sec. 113, Sec. 114 Consuelo Metal Corporation, v. Planters Development Bank & Maningas, G.R. No. 152580, June 26, 2008, 555 SCRA 465. Yngson v. Philippine National Bank, G.R. No. 171132, August 15, 2012 2) Unsecured Creditor Claims, Sec. 123, Sec. 113 4. Treatment of Contracts a. Termination or Breach of Contracts, Sec. 113 b. Avoidance Proceedings, Sec. 127, Sec. 58, Sec. 128 5. Liquidation Plan, Sec. 129 to 133 6. Termination of Proceedings, Sec. 121, Sec. 134, Sec. 135 Ancillary Proceedings 1. Securities Market Participant, Sec. 136 2. Banks and Other Financial Institutions Under Rehabilitation Receivership Pursuant to a State-funded or State-mandated Insurance System, Sec. 137, Sec. 138 3. Cross-Border Insolvency Proceedings, Sec. 139 to 142

C. D. V. A. B.

C. D.

E.

Stephanie V. Gomez-Somera