CONCEPT OF SECURITY

A. General Concepts
1. Distinguished from Securities (RA No. 8799 Sec !.1"
#. Distinguished from Securiti$ation
%. &'ents of Default
C. (inds of Securit) *ransactions
1. +ersonal Securit) *ransaction
#. Real Securit) *ransaction
!. ,n the Conte-t of ,nsol'enc) (RA No. 1.1/# Sec / (p" (ll" (00" (11" (22" (pp" (t"
Letters of Credit
A. General Concepts (Code of Commerce Art 347 Art. 348 Art #"
CASE: Transfeld Phils., Inc. vs Luzon Hydro Corp. Australia, et al
! "o. #$%&#&, "ove'(er )), )**$, $$+ SC!A +*&
%. (inds of 5etters of Credit
1. Commercial 5etters of Credit
#. Stand6) 5etters of Credit
C. Rule of Strict Compliance
D. ,ndependent +rinciple
Trust Receipts
A. General Concepts (+D No. 113 Sec ! Sec /"
%. 7orm of *rust Receipts (Sec 3 Sec 4"
C. Rights of &ntruster (Sec 7 Sec 8"
D. 86ligation of &ntrustee (Sec 9 to 1!"
&. Rights of +urchaser (Sec 11"
CASE: Colinares , -eloso vs CA
! "o. .*/)/, Septe'(er 0, )***, ++. SC!A %*.
SECURITY TRANSACTIONS (Civil Code Provisions)
A. General Concepts (Arts. #./7 #./8 #.31"
%. 7orm of Guarant) (Arts. #.33 1/.!"
C. 86ligations Secured (Arts. #.3# to #.3/"
D. +arties to Guarant) (Arts. #.34 #.37 #./9 #.4/ #.43"
&. %ene9t of &-cussion (Arts. #.38 to #.4/ #.81"
CASE:Tupaz I- , Tupaz vs. CA , 1PI
! "o. #$00&/, "ove'(er #/, )**0, $&0 SC!A +./
7. Right to +rotection (Art #.71"
G. Right to ,ndemni9cation (Arts #.44 #.3. 1#!4 #.49 #.7. #.7#"
:. Rights to Su6rogation (Arts #.47 #.3. 1#!7 #.48 #.8."
,. Rights of Co;Guarantors
1. %ene9t of Di'ision (Arts #.43 #.78"
#. Rights to Reim6ursement (Arts #.7! to #.73"
<. &-tinguishment and Right of Release (Arts #.74 #.77 #.79 #.8."
SURETY
A. General Concepts (Arts. #./7 1#11 1#14 #.8# to #.8/"
%. 7orm of Suret) ( Art 1/.!"
C. 86ligation of Secured (Art #.3!"
CASE: Security 1an2 , Trust Co. vs Cuenca
! "o. #+/0$$, 3cto(er +, )***, +$# SC!A &/#
D. Distinguished from Stand6) 5etter of Credit
&. Distinguished from Guarant) (Art. #./7"
CASE: Pal'ares vs CA , 41 Lendin5 Corp.
! "o. #)%$.*, 4arch +#, #.//, )// SC!A $))
E. 6o(el, Inc. vs CA
! "o. ##+.+#, 4ay %, #../, ).* SC!A #
International 7inance Corp. vs. I'perial Te8tile 4ills, Inc.
! "o. #%*+)$, "ove'(er #0, )**0, $&0 SC!A #$.
Philippine 1loo'in5 4ills, Inc. , Chin5 vs. CA
! "o. #$)+/#, 3cto(er #0, )**+, $#+ SC!A $$0
7. Distinguished from <oint and Solidar) 86ligations (Arts #./7 #.44 #.47 1#17"
CASE: Escano , Silos vs. 3rti5as, 9r.
! "o. #0#.0+, 9une )., )**&, 0)% SC!A )%