Académique Documents
Professionnel Documents
Culture Documents
hen after applied for a loan with PBTC and executed a real estate mortgage cover
ing the properties to secure the payment of the loan. Such loan was granted. Un
fortunately, despite repeated demands, Corazon failed to pay the purchase price
of the properties. What she received from Corazon was a partial payment in kind
consisting 5 vehicles totaled P665,000. Respondent then filed a complaint for co
llection of sum of money and annulment of sale and mortgage with damages against
Corzon and the Petitioner before the RTC.
Issue: Whether or not the petitioner is subsidiarily liable to respondent abasol
o?
Held: No. To a banking institution, well-defined lending policies and sound lend
ing practices are essential to perform its lending function effectively and mini
mize the risk inherent in any extension. However, in the absence of lender-borro
wer relationship between petitioner and Abasolo, there is no inherent obligation
of petitioner to release the proceeds of the loan to her.