Académique Documents
Professionnel Documents
Culture Documents
About
UD
Full
Texts
LegalEnglish
LawStudentBlog
Forum
QuizzesandExams
LAWMEMES
2013BAREXAMRESULTS
CourtofAppeals
VSDeVS
PhilippinesVS
StockCertificate
Search
HomeJurisprudenceCaltexvsCourtofAppeals
CaltexvsCourtofAppeals
SPONSOREDADS
0
NegotiableInstrumentsLawNegotiableInstrumentsinGeneral212SCRA448BearerInstrumentCertificateofTimeDeposit
In1982,AngeldelaCruzobtainedcertificatesoftimedeposit(CTDs)fromSecurityBankandTrustCompanyfortheformersdeposit
withthesaidbankamountingtoP1,120,000.00.ThesaidCTDsarecouchedinthefollowingmanner:
This is to Certify that B E A R E R has deposited in this Bank the sum of _______ Pesos, Philippine Currency,
repayabletosaiddepositor_____days.afterdate,uponpresentationandsurrenderofthiscertificate,withinterestatthe
rateof___%percentperannum.
AngeldelaCruzsubsequentlydeliveredtheCTDstoCaltexinconnectionwiththepurchaseoffuelproductsfromCaltex.
InMarch1982,AngeldelaCruzadvisedSecurityBankthathelosttheCTDs.Heexecutedanaffidavitoflossandsubmittedittothe
bank.ThebankthenissuedanothersetofCTDs.Inthesamemonth,AngeldelaCruzacquiredaloanofP875,000.00andheusedhis
timedepositsascollateral.
InNovember1982,arepresentativefromCaltexwenttoSecurityBanktopresenttheCTDs(deliveredbydelaCruz)forverification.
CaltexadvisedSecurityBankthatdelaCruzdeliveredCaltextheCTDsassecurityforpurchaseshemadewiththelatter.SecurityBank
refused to accept the CTDs and instead required Caltex to present documents proving the agreement made by de la Cruz with Caltex.
Caltexhoweverfailedtoproducesaiddocuments.
InApril1983,delaCruzloanwithSecuritybankmaturedandnopaymentwasmadebydelaCruz.SecurityBankeventuallysetoff
thetimedeposittopayofftheloan.
CaltexsuedSecurityBanktocompelthebanktopayofftheCTDs.SecurityBankarguedthattheCTDsarenotnegotiableinstruments
even though the word bearer is written on their face because the word bearer contained therein refer to depositor and only the
depositorcanencashtheCTDsandnooneelse.
ISSUE:Whetherornotthecertificatesoftimedepositarenegotiable.
HELD:Yes.TheCTDsindicatethattheyarepayabletothebearerthatthereisanimplicationthatthedepositoristhebearerbutastowhothedepositoris,no
oneknows.ItdoesnotsayonitsfacethatthedepositorisAngeldelaCruz.IfitwasreallytheintentionofrespondentbanktopaytheamounttoAngeldela
Cruzonly,itcouldhavewithfacilitysoexpressedthatfactinclearandcategoricaltermsinthedocuments,insteadofhavingthewordBEARERstampedon
thespaceprovidedforthenameofthedepositorineachCTD.Onthewordingsofthedocuments,therefore,theamountsdepositedarerepayabletowhoevermay
bethebearerthereof.
Thus, de la Cruz is the depositor insofar as the bank is concerned, but obviously other parties not privy to the transaction between them would not be in a
positiontoknowthatthedepositorisnotthebearerstatedintheCTDs.
However, Caltex may not encash the CTDs because although the CTDs are bearer instruments, a valid negotiation thereof for the true purpose and agreement
betweenCaltexandDelaCruz,requiresbothdeliveryandindorsement.AsdiscernedfromthetestimonyofCaltexrepresentative,theCTDsweredeliveredto
thembydelaCruzmerelyforguaranteeorsecurityandnotaspayment.
Readfulltexthere.
SPONSOREDADS
RelatedCases/LegalResources
AngTekLianvs
PoncevsCourtof
ArrietavsNational
InciongvsCourtof
PhilippineNational
RepublicPlanters
CourtofAppeals
Appeals
RiceandCorn
Corporation
Appeals
BankvsConcepcion
Mining
BankvsCourtof
Appeals
JimenezvsBucoy
Addacomment...
Comment using...
Facebooksocialplugin
LeaveaReply
Youremailaddresswillnotbepublished.Requiredfieldsaremarked*
Name*
Email*
Website
Comment
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite="">
<cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
SubmitComment
Notifymeoffollowupcommentsbyemail.
Notifymeofnewpostsbyemail.
FindUberDigestsonFacebook!
UberDigests
Like
3,859peoplelikeUberDigests.
Facebooksocialplugin
InsideUberDigests
SponsoredAds
MCQOnlineQuizzes
DigestsandotherresourceswithinthissitearelicensedunderaCreativeCommonsAttributionNonCommercialShareAlikeLicenseunless
otherwiseindicated.
RecentPosts
ARANETAvsDINGLASAN
UberLinks
LatestLawMemes
FeaturedArticles
ABOUTUBERDIGESTS Howdoesinktastelike?Thisrevieweeknows
BestJobsToHaveWhile
TakingUpLaw
INRE:PETITIONFORASSISTANCEINTHELIQUIDATIONOFTHERURALBANKOFBOKOD
TERMSOFUSE
RememberthisinObliCon
RuralBankofBokod(Benguet),Inc.vsBureauofInternalRevenue
PRIVACYPOLICY
Mostofthematleast
HowToDigestCases
NORECOIIvsSANGGUNIANGPANLUNGSODOFDUMAGUETE
DISCLAIMER
LawSchoolMeme
MirandaRightsinthe
SABIOvsGORDON
THELAWYERSOATH Thatfeelingofrelief!
Philippines
KURODAvsJALANDONI
FILIPINOLOSOPHY
Thistypeofanswercanbedefendedinlawschool
SWAisaScam!
MEJOFFvsDIRECTOR
PARTNERS
TheToughestBarExamsinthe
SITEMAP
World
IsLoveLegallyDemandable?
Shouldthe2015BarExamsBe
Moved?