NEW CENTRAL BANK ACT

I. Bangko Sentral ng Pilipinas

a. Roles of the BSP
b. BSP Privileges and Prohibitions
II. Monetary board composition
a. Disqualifications/Inhibition on Governor and Board Members
b. Removal of Governor and Board Members
c. Responsibilities/Liability of BSP officers and Employees
III. Supervision and Examination of Banks
a. No Restraining Order Against the BSP
b. Liabilities for Refusal to Make Reports
c. Effect of DOSRI Accounts
IV. Prohibitions on BSP Officers, Directors, Lawyers, and Agents
V. Philippine Peso, Currency, and Legal Tender
VI. Foreign Exchange Operations
VII. Domestic Monetary Stabilization
a. International Reserves
b. Emergency Restrictions on Foreign Exchange Operations
c. Exchange Rates
d. Operations with Foreign Entities
VIII. BSP Loans to Banks and other Financial Institutions,
a. Authorized Types of Operations
IX. Bank Reserves
a. Required Reserves
b. Exemption from Attachment
X. BSP Supervision and Regulation of Bank Operations
a. Loans and other Credit Accommodations by Banks
i. Unsecured Loans
ii. Other security requirements for bank credits
iii. Terms and conditions
iv. Renewal or Extension of Loans

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 b. Selective Regulation of Bank Operations
i. Margin Requirements against letters of credit
ii. Required Security Against bank Loans
iii. Portfolio Ceilings
XI. Risk based Capital
a. Effect of Non Compliance
XII. Open Market Operations
XIII. MarketIng and Stablization of Securities
a. Issuance of securities representing Government Obligations
b. Servicing and Redemption of Public Debt
c. Securities Stabilization Fund
XIV. The Basel Accords
a. Bassel 1 Accord
b. Bassel 2 Accord
c. Bassel 3 Accord

SECRECY OF BANK DEPOSITS LAW

I. Policy Under RA 1405
a) BSB Group Inc vs. Go
II. Operative Provisions of RA 1405
a) Secrecy of Bank Deposits
b) Prohibition on Disclosure
(i) China Banking Corporation vs. Ortega
(ii) Onate vs. Abrogar
(iii) BSB Group Inc. vs. Go
III. Other Laws Promoting Secrecy of Bank Deposits
a) Foreign Currency Deposit Act
b) General Banking Law
IV. Other Exceptions to the Secrecy of Bank Deposits
a) Anti-Graft and Corrupt Practices Act
b) Monetary Board Authority
c) Under 1997 NIRC

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 d) Anti Money Laundering Act
e) Revised PDIC Charter
f) Exchange of Information on Tax Matters Act.

GENERAL BANKING LAW

I. Declaration of Policy
a. Banking Industry “Impressed with Public Interest”
PNB vs. Pike
BDO vs. JAPRL
GSIS vs. Santiago
b. Types of banks
i. Universal Bank
ii. Commercial Bank
iii. Rural bank
iv. Thrift bank
v. Cooperative bank
vi. Islamic Bank
c. Foreign Banks (page 791)
i. RA 10641
ii. Head office Guarantee
iii. Summons and Legal Process
iv. Revocation of License of Foreign bank
II. Organization of Banks and Quasi-Banks
a. Prohibition on Treasury Stocks
b. Foreign Stockholding
c. Family Groups or Related Interests
d. Board of Directors
e. Fit and Proper Rule
f. Suspension/Removal of Directors or Officers
g. Compensation and other Benefits of Directors and Officers
h. Prohibited Transactions by Bank Directors and Officers
i. Prohibition on Dividend Declaration

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 j. Settlement of Disputes
III. Operations of Banks
a. General Rule
b. Conducting Business in unsafe or unsound manner
c. Bank Branches
d. Banking Days and Hours
e. Independent Auditor
f. Authority to Regulate Electronic Transactions
g. Financial Statements
h. Penalized Transactions After Bank Becomes Insolvent
IV. Banks are bound to exercise the highest degree of diligence in supervision of
officers and employees
a. Principle
b. Strikes and Lockouts
V. Bank Deposits
a. Types of Deposits
i. Savings Deposit
ii. Demand Deposit
iii. Time Deposit
b. Nature of Deposit Account (mutuum)
c. Fiduciary Obligation of the Highest Standard
d. Procedures Covering Bank deposits
e. Dealings with savings account
f. Dealings with Checking account
g. Rights and Obligations of Collecting Banks
h. Rights and Obligations of Correspondent Banks
i. Freezing of Accounts
VI. Loans and Other Credit Accommodations
a. Grant of Loans and Other credit accommodations
i. Safe and sound banking practice
ii. Ascertainment of borrower’s capability
iii. Nature of Bridge-Financing

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 b. Amortization on Loans and Other Credit Accommodations
c. Prohibited Acts by the Borrower
d. Extraordinary Diligence in dealing with loans and credit accommodations
e. Floating Interest Rates and Escalation Clauses
f. Single Borrower’s Limit
i. Coverage
ii. Inclusion of parent Corporation
g. DOSRI
h. Limits on Security Arrangements
i. Foreclosure of REM
i. Individual Mortgage or debtor
ii. Juridical Mortgagor or debtor
j. Provisions for Losses and Write-Offs
VII. Other Bank Operations
a. Other Banking Services
b. Money Market Transactions Investment Management Activities
c. Major Investments
VIII. Trust Operations
a. Conduct of Trust Business
b. Prohibited transactions
c. Powers of Trust Entity
d. Investment Limitations
e. Exemption of Trust Asset from Claims
f. Establishment of branches
IX. Other Related Laws
a. Truth in Lending Act
b. Unclaimed balances Law
c. Uniform Currency Act

FOREIGN INVESTMENTS ACT

I. Main Features of RA 7042, as amended by RA 8179
II. Application of FIA

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 III. Types of Industries Covered
a. Domestic market enterprise
b. Export Enterprise
IV. Foreign Investment Negative List
a. Function
i. List A
ii. List B
V. Procedure of Registration
VI. Definition of Philippine National
VII. Further Liberalization of Foreign Investments Under RA 8179
a. Expanded Coverage of Philippine national
b. Elimination of 3 year period to change status
c. Investment Rights of Former Natural-born Filipinos
d. Land Acquisition Rights of Former natural Born Filipinos
i. In case of married couples
ii. In case transferee already owns urban or rural land for business
iii. Rights of transferee
VIII. Doing Business in the Philippines
a. Covering Law
b. What constitutes doing business
c. Qualifications to do business
d. Registration under FIA ‘91

ELECTRONIC COMMERCE ACT

I. Salient Features of RA 8792
a. Act’s sphere of application
b. Definition of key terms
i. Electronic data message
ii. Electronic document
iii. Electronic signature
iv. Electronic key
II. Legal recognition of E-Data Messages and E-Documents

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 a. Legal recognition of e-data message
b. Legal recognition of e-documents
c. Legal recognition of e-signatures on an e-document
d. Rule on original documents
e. Admissibility and Evidential Weight
f. Retention of E-Data Message or E-document
III. Supreme Court’s Rules on Electronic Evidence
a. E-documents as functional equivalent of paper documents
b. Rule on admissibility
c. Rule on privileged communication
d. Best Evidence Rule
e. Authentication of e-document
f. E-signature
g. Business Records as exception to hearsay
h. Method of proof of e-evidence
i. Audio, Video, and Ephemeral Evidence
IV. Communication of E-Data Messages or E-Documents
a. Formation and Validity of E-Contract
b. When Consummated
c. Recognition by Parties of E-Data Message or E-document
d. Rule of Attribution of E-Data Message or E-Document
e. Rules on Agreement on Acknowledgement of Receipt
f. Time of dispatch
g. Time of receipt
h. Place of dispatch and receipt
V. E-Commerce in carriage of goods
VI. E-Commerce offences
a. Hacking or cracking
b. Piracy
c. Violation of the Consumer Act and other Pertinent laws using e-data
messages or e-documents
VII. Rules on Access

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VIII. Liability of Service Provider

DOCUMENTS OF TITLE UNDER CIVIL CODE AND CODE OF COMMERCE

WAREHOUSE RECEIPT ACT

I. Purpose and Coverage of Act 2137
II. Nature and Functions of Warehouse Receipt
a. Warehouse Receipt Constituted as Equitable Mortgage
III. Assignment and Negotiation of Warehouse Receipts
a. Non-negotiable warehouse receipt
b. Negotiable “to order” warehouse receipt
c. Negotiable “bearer” warehouse receipt
IV. Rules pertaining to negotiable warehouse receipts
a. On the form of receipt
b. Alteration
c. When covered goods delivered
d. Where receipt lost or destroyed
e. Covered goods exempt from direct attachment or levy
f. Warehousement’s Lien
g. Negotiation of Receipt
i. Proper negotiation grants to holder
ii. Warranties against transferor
h. When “order receipt” delivered without endorsement
V. Warehouseman’s Lien
VI. General Bonded Warehouse Act – defines warehouseman

LETTERS OF CREDIT
I. Governing law
II. Nature of LC
a. When it becomes binding
b. Distinguished form guarantee
c. Distinguished from Standy Credits

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 d. Distinguished from trust
III. Parties in Letters of Credit transactions
a. Rights and obligations of the parties
b. Marginal deposit
IV. Contracts arising in letter of credit arrangement
a. Three distinct contracts:
b. Rule of Strict Compliance
c. Independent Principle
d. Fraud Exception to Independent Principle
V. Irrevocable vs. Confirmed Letter of Credit
VI. Letters of Creidt-Trust Receipt Transactions

TRUST RECEIPTS LAW

I. Governing law
II. Nature of trust Receipts
a. Estafa does not cover acquisition of goods for manufacture
III. Parties to a trust receipt arrangement
a. Entruster
b. Entrustee
c. Innovations on civil law concepts
i. Nemo dat quod non habet
ii. Res perit domino rule
IV. Remedies available in trust receipt transactions
a. Entruster may file estafa charges against entrustee
i. Elements of damage and deceipt
b. Civil Action to Recover loan against entrustee
c. Issues on Corporate Officers and Representatives
i. On Criminal Liability of Corporate Officer
ii. On Civil Liability of Corporate Officer

COMMON CARRIERS: CIVIL CODE

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 I. Common Carrier (Art 1732, NCC)
First Phil Industrial vs. Court of Appeals
Loadstar Shipping vs. CA
Asia Ligherage vs. CA
Crisostomo vs. CA
Perena vs. Zarate
a. Common Carrier vs. Private Carrier
De Guzman vs. CA
Planters Products vs. CA
National Steel Corporation vs. CA
Philamgen vs. PKS Shipping
b. When Customs Broker may be a common carrier
II. Common Carrier’s Business imbued with Public Interest
a. Bound to exercise extraordinary diligence
b. Presumption of negligence when passengered die or injured
III. Causes of Action arising from same negligency act
a. Culpa Contractual
b. Culpa Aquiliana
c. Culpa Criminal
IV. Kabit System
V. Boundary System

CONTRACT OF CARRIAGE OF PASSNEGERS

I. Nature of Contract of Carriage of Passengers
II. When does it begin?
III. When does it end?
IV. Obligations of carrier in contract of carriage of passengers
a. In General
b. Liability in delay in commencing voyage
c. Liability arising from equipment and facilities
d. As to circumstnaces at the time of accident
e. Injuries caused by employees

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 f. When carrier liabile for injuries caused by other passegners
g. Obligation of common carriers for baggages
h. Moral damages for death of passenger
V. Defenses available in culpa contractual
a. Exercise of extraordinary diligence (?)
b. Fortuitous event
c. Contributory negligence of passengers
d. Doctrine of Lase Clear Chance

CONTRACT OF CARRIAGE OF CARGO

I. When does a contract of carriage of goods begin
II. Bill of Lading
a. Functions of a Bill of Lading
b. Types of Bill of Lading
c. Third Parties Bound by Bill of Lading
i. Consignee
ii. Insurer-Subrogee
d. Legal Effects of Contents and Stipulations in the Bill of Lading
e. Legal Effect of Overshipment based on Letter of Credit
f. Containerization system for cargoes; shipper’s load and count arrangement
III. Rights of Carrier under Contract of Carriage of Cargo
a. Right of Carrier to Examine Suspicious Cargo
b. Absent Stipulation, carrier has no oblibation to deliver cargo immediately
c. Right of carrier to recover freightage
i. Retaining lien
ii. Carrier’s lien
iii. Civil case for collection of sum of money
iv. Consignation in court
1. Consignee cannot be found
2. Consignee refuses to accept the goods
3. Consignee refuses to pay freightage
IV. When does contract of carriage of goods end

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 V. Primary Obligation of Carrier in a Contract of carriage of goods
a. Presumption of negligence when cargo lost/arrive in damaged condition
b. Defenses available
i. Force majeure
ii. Contributory negligence
VI. Laws Governing Enforcement of Carrier’s Liability for Loss/Damage
a. Civil Code
b. COGSA
VII. Limiting Carrier’s Liability on the Value of Damaged Cargo
a. Must shipper or owner of goods sign the ticket or Bill of Lading
b. Proper Description of goods and their value in Bill of Lading
VIII. Limiting Period to Recover on Damaged Cargo
a. Inter-island Trade
i. Damage apparent
ii. Damage not apparent
b. Overseas Trade
i. Damage apparent
ii. Damage not apparent
c. COGSA’s applicability to claims on insurance

Air Travel and Warsaw Convention

I. Nature of Airline’s Business; Matters Relating to Airline Tickets
II. Liabilities for airline companies
a. Employees malfeasance or indifference
b. Entries in travel documents
c. Bumping off passenger
d. Accommodations for stranded passengers
e. Overbooking
f. Substituting aircrafts/carriers without notice
g. Transporting Bags in another airline
h. Damage caused by hijacking
i. Security Measures against terrorism

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 j. PH Registered Aircraft bound by PH rules
III. Damages recoverable (subject to limitation of liability clause)
a. Actual damages
b. Unrealized profits
c. Moral damages
d. Liability for passenger’s death
i. Statutory value of life loss
ii. Loss of earning capacity
IV. Warsaw Convention
a. Objectives; meaning of international carriage
b. Airline pooling agreements
c. Provision limiting liability
d. Provision on Limitation on time to file action
e. Jurisdiction of local course under Warsaw convention. -- Note: action for
damages must be brought at the option of the plaintiff either before the
court of:
i. Domicile of carrier
ii. Carrier’s principal place of business
iii. Place where carrier has a place of business through which the
contract was made
iv. Place of destination
V. Chicago Convention

Arrastre – not in Abella syllabus but read in page 238 of Villanueva. Read Public Service Laws
(p 84)

For IPL see: Prof. Villanueva Outline

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