COURSE SYLLABUS

Course Number: LS 206 School Year: 2023-2024, 1st Semester

Course Title: Credit Transactions (3 units) Schedule: Sunday, 1-4PM
Professor: Jhon Dave L. Macatol

A. Course Description
This three-unit course deals with the Civil Code provisions on loan, deposit, guaranty, antichresis
and concurrence and preference of credits. This course also covers several special laws such as
the Warehouse Receipt Law, Trust Receipts Law, Act 3135 (Extrajudicial Foreclosure of Real
Estate Mortgages), Act 1508 (Chattel Mortgage Law) and the Personal Property Security Act
including pledge and chattel mortgage for purposes of discussing the distinctions.

B. Course Objectives
At the end of the course, the students are expected to:
1. Have a sound knowledge and understanding of the various credit transactions
2. Identify the different kinds of loan and the applicable interest rates
3. Identify and distinguish the different kinds of deposits and its applicable rules
4. Understand the concept of Letters of Credit
5. Distinguish guaranty from suretyship and its applicable rules
6. Identify the rules applicable to contracts of real security, specifically security interest on
personal properties and real estate mortgage
7. Know the procedure of extrajudicial foreclosure sale governing real estate mortgage
8. Study how the laws on personal security has been changed by the Personal Property Security
Act
9. Identify the relevant provisions in the Warehouse Receipt Law and Trust Receipt Law
10. Identify the respective rights and liabilities of the parties involved in these credit transactions
11. Acquire and develop the necessary skills in interpreting and applying the law to specific
situations
12. Develop analytical and responsive approach in the study of law

C. Course Policies
The students should strictly comply with these policies:
1. Take the Quizzes and Examinations on the specified date and time. Students are required to take
the prelim, mid-term, and final examinations as scheduled. Failure to take an examination
without valid cause shall result in a zero grade for that particular examination. Special
examinations are only granted in cases of extreme danger of death or disability.
2. Submit all written requirements on the specified date and time.
3. Always ready when called upon during synchronous lectures (i.e., online and face-to-face).
Every student is expected to have read all assigned codal provisions, special laws and cases as
provided in this Course Outline.
4. During online class, ensure that the camera and microphone are working at all times. While
there is no need to turn on the video and microphone at all times during synchronous lectures,
the same must be working as the student may be called anytime during the lecture.
5. Students shall attend to class decently dressed and must be in a proper disposition.
6. Any form of cheating shall result in a failing grade in this course and shall be subjected to a
disciplinary action in accordance with the Student Manual. Cheating is punishable by
EXPULSION. Other forms of misdemeanor shall be punished severely.

D. Teaching Methodology
Classes will be both synchronous and asynchronous. Synchronous classes will be conducted
through face-to-face or Zoom, most of the time face-to-face. Asynchronous classes will be through
pre-recorded lectures and posted in ULearning or in any available platform. As to when

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 synchronous or asynchronous classes will be held during the week, announcements shall be made
in class or posted in ULearning or in any available platform/application such as Messenger.

Exams will be conducted through Examplify while the quizzes shall be conducted either in
Examplify or using pen and paper. All examinations shall be conducted face-to-face in the campus.

E. Course Outline (with Case List)

PART I : CONCEPT OF CREDIT TRANSACTIONS

PART II : LOAN (Articles 1933 – 1961)

I. Concept

II. Commodatum
a. Pajuyo vs. CA – G.R. No. 146364 (June 3, 2004)
b. Producers Bank vs. CA – G.R. No. 115324 (February 19, 2003)
c. Republic of the Phil. vs. Bagtas – G.R. No. L-17474 (October 25, 1962)
d. De Los Santos vs. Jarra – G.R. No. 4150 (February 10, 1910)
e. Catholic Vicar vs. CA – G.R. No. 802904 (September 21, 1988)
f. Mina vs. Pascual – G.R. No. 8321 (October 14, 1913)
g. Quintos vs. Beck – G.R. No. 46240 (November 3, 1939)

III. Mutuum & Usury Law

a. BPI vs. CA – G.R. No. 133632 (February 15, 2002)
b. Yong Chan Kim vs. People – G.R. No. 84719 (Jan. 25, 1991)
c. Odiamar vs. Valencia – G.R. No. 213582 (Sept. 12, 2018)
d. Eastern Shipping Lines vs. Court of Appeals – G.R. No. 97412 (July 12, 1994)
e. Crismina Garments vs. CA – G.R. No. 128721 (March 9, 1999)
f. PNB vs. Ibarrola – G.R. No. 123643 (October 30, 1996)
g. Pilipinas Bank vs. CA – G.R. No. 97873 (August 12, 1993)
h. Estores vs. Spouses Supangan – G.R. No. 175139 (April 18, 2012)
i. Medel vs. CA – G.R. No. 131622 (November 27, 1998)
j. Spouses Barrera vs. Spouses Lorenzo – G.R No. 130994 (September 18, 2002)
k. Chua vs. Timan – G.R. No. 170452 (August 13, 2008)
l. Toledo vs. Hyden – G.R. No. 172139 (December 8, 2010)
m. Prisma vs. Menchavez – G.R. No. 160545 (March 9, 2010)
n. De La Paz vs. L & J Development – GR No. 183369 (September 8, 2014)
o. Bulatao vs. Estonactoc – G.R. No. 235020 (December 20, 2019)
p. Dio vs. Spouses Japor – G.R. No. 154129 (July 8, 2005)
q. Solidbank vs. Permanent Homes – G.R. No. 171925 (July 23, 2010)
r. Pan Pacific vs. Equitable – G.R. No. 169975 (March 18, 2010)
s. Nacar v. Gallery Frames - G.R. No. 189871 (August 13, 2013)
t. Federal Builders vs. Foundation Specialists – G.R. Nos. 194507 & 194621
(September 8, 2014)
u. Spouses Abella vs. Spouses Abella – GR No. 195166 (July 8, 2015)
v. Isla vs. Estorga – G.R. No. 233974 (July 2, 2018)
w. Sun Life of Canada vs. Tan Kit – G.R. No. 183272 (October 15, 2014)
x. Hun Hyung Park vs. Eung Won Choi – G.R. No. 220826 (March 27, 2019)
y. Lara’s Gifts vs. Midtown – G.R. No. 225433 (August 28, 2019)
z. Tan vs. CA – G.R. No. 116285 (October 19, 2001)
aa. Spouses Albos vs. Embisan – GR No. 210831 (Nov. 26, 2014)
bb. Siga-an vs. Villanueva – G.R. No. 173227 (Jan. 20, 2009)
cc. Bankard, Inc vs. Alarte – G.R. No, 202573 (April 19, 2017)

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 dd. Spouses Yulo vs. BPI – G.R. No. 217044 (January 16, 2019)

Rule on Credit Card Charges as per Monetary Board Circular 1098 (11/03/2020)

PART III: DEPOSIT (Articles 1962 – 2009)

I. Deposit in General & its Different Kinds

a. BPI vs. IAC – G.R. No. 66826 (August 19, 1988)

II. Voluntary Deposit

a. Chan vs. Maceda – G.R. No. 142591 (April 30, 2003)
b. Calibo vs. CA – G.R. No. 120528 (January 29, 2001)
c. CA Agro–Industrial vs. CA – G.R. No. 90027 (March 3, 1993)
d. Sia vs. CA – G.R. No. 102970 (May 13, 1993)
e. Baron vs. David – G.R. No. 26948 (October 8, 1927)
f. Javellana vs. Lim – G.R. No. 4015 (August 24, 1908)
g. Rogers vs. Smith – G.R. No. 4347 (March 9, 1908)
h. Compañia Agricola vs. Nepomuceno – G.R. No. 32778 (November 14, 1930)
i. BPI vs. CA – G.R. No. 104612 (May 10, 1994)
j. Metrobank vs. BA Finance – G.R. No. 179952 (December 4, 2009)
k. Reyes vs. CA – G.R. No. 118492 (August 15, 2001)
l. Guingona vs. City Fiscal – G.R. No. 60033 (April 4, 1984)

III. Necessary Deposit

a. Durban Apartments vs. Pioneer – G.R. No. 179419 (January 12, 2011)
b. YHT Realty vs. CA – G.R. No. 126780 (February 17, 2005)
c. Makati Shangri-La vs. Harper – G.R. No. 189998 (August 29, 2012)

IV. Sequestration or Judicial Deposit

a. Province of Bataan vs. Villafuerte – G.R. No. 129995 (October 19, 2001)

PART IV: WAREHOUSE RECEIPTS LAW

FIRST EXAMINATION

PART V: TRUST RECEIPTS LAW

a. Colinares vs. CA – G.R. No. 90828 (September 4, 2000)

b. Consolidated vs. CA – G.R. No. 114286 (April 19, 2001)
c. Rosario Textile vs. Home Bankers – G.R. No. 137232 (June 29, 2005)
d. Land Bank vs. Perez – G.R. No. 166884 (June 13, 2012)

PART VI: LETTERS OF CREDIT

a. Prudential Bank vs. IAC – G.R. No. 74886 (December 8, 1992)

b. Bank of America vs. CA – G.R. No. 105395 (December 10, 1993)
c. HSBC vs. National Steel – G.R. No. 183486 (February 24, 2016)
d. Transfield vs. Luzon Hydro – G.R. No. 146717 (November 22, 2004)

PART VII: GUARANTY & SURETYSHIP (Articles 2047 – 2084)

I. Nature and Extent

a. Escaño vs. Ortigas – G.R. No. 151953 (June 29, 2007)

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 b. Asset Builders vs. Stronghold – G.R. No. 187116 (Oct. 18, 2010)
c. Gilat Satellite vs. UCPB – G.R. No. 189563 (April 7, 2014)
d. Machetti vs. Hospico de San Jose – G.R. No. L-16666 (April 10, 1922)
e. Palmares vs. Court of Appeals – G.R. No. 126490 (March 31, 1998)
f. Willex vs. CA – G.R. No. 103066 (April 25, 1996)
g. Diño vs. CA – G.R. No. 89775 (Nov. 26, 1992)
h. Atok vs. CA – G.R. No. 80078 (May 18, 1993)
i. RCBC vs. Judge Arro – G.R. No. L-49401 (July 30, 1982)
j. Fortune Motors vs. CA – G.R. No. 112191 (February 7, 1997)
k. South City Homes vs. BA Finance – G.R. No. 135462 (December 7, 2001)
l. Yulim International vs. International Exchange – GR No. 203133 (Feb. 18, 2015)
m. Erma Industries vs. Security Bank – G.R. No. 191274 (December 6, 2017)
n. Allied Banking vs. Yujuico – G.R. No. 163116 (June 29, 2015)
o. Pacific Banking vs. IAC – G.R. No. 72275 (Nov. 13, 1991)
p. Molino vs. Security – G.R. No. 136780 (Aug. 16, 2001)
q. Security Bank vs. Cuenca – G.R. No. 138544 (October 3, 2000)
r. Gateway vs. Asianbank – G.R. No. 172041 (Dec. 18, 2008)
s. BA Finance vs. CA – G.R. No. 94566 (July 3, 1992)
t. Aglibot vs. Santia – G.R. No. 185945 (December 5, 2012)
u. Texas Company vs. Alonso – G.R. No. 47495 (August 14, 1941)
v. Visayan Surety vs. CA – G.R. No. 127261 (Sept. 7, 2001)
w. Estate of Hemady vs. Luzon Surety – G.R. No. L-8437 (Nov. 28, 1956)

II. Effects of Guaranty

a. Wise Co. vs. Tanglao – G.R. No. 42518 (August 29, 1936)
b. Prudential Bank vs. IAC – G.R. No. 74886 (Dec. 8, 1992)
c. JN Dev’t. vs. Phil. Export – G.R. No. 151060 (Aug. 31, 2005)
d. Bitanga vs. Pyramid – G.R. No. 173526 (Aug. 28, 2008)
e. Mira Hermanos vs. Manila – G.R. No. 48979 (Sept. 29, 1943)
f. Manila Surety vs. Batu – G.R. No. L-9353 (May 21, 1957)
g. RCBC vs. Bernardino – GR No. 183947 (September 21, 2016)
h. Special Steel Products, Inc. vs. Villareal – G.R. No. 143304 (July 8, 2004)
i. Tuason vs. Machuca – G.R. No. L-22177 (Dec. 2, 1924)
j. Kuenzle vs. Sunco – G.R. No. 5208 (Dec. 1, 1909)

III. Extinguishment
a. Stronghold vs. Republic – G.R. No. 147561 (June 22, 2006)
b. Spouses Toh vs. Solid Bank – G.R. No. 154183 (Aug. 7, 2003)
c. TIDCORP vs. Asia Paces Corp – G.R. No. 187403 (February 12, 2014)
d. TIDCORP vs. Philippine Veterans Bank – G.R. No. 233850 (July 1, 2019)
e. PNB vs. Manila Surety – G.R. No. L-20567 (July 30, 1965)
f. The Mercantile vs. DMCI-Laing – G.R. No. 205007 (Sept. 16, 2019)

IV. Legal and Judicial Bonds

PART VIII: PLEDGE

Provisions Common to Pledge and Mortgage

a. Bangko Sentral vs. Libo-on – GR No. 173864 (Nov. 23, 2015)
b. Development Bank vs. Prudential Bank – G.R. No. 143772 (Nov. 22, 2005)
c. Cavite Dev’t Bank vs. Spouses Lim – G.R. No. 131679 (Feb. 1, 2000)
d. Vda. De Jayme vs. CA – G.R. No. 128669 (October 4, 2002)
e. Hechanova vs. Adil – G.R. No. L-44940 (Sept. 25, 1986)
f. Uy Tong vs. CA – G.R. No. 77465 (May 21, 1988)

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 g. Philnico vs. PMO – GR No. 199420 (August 27, 2014)
h. Spouses Ong vs. Roban Lending – G.R. No. 172529 (July 9, 2008)
i. Spouses Pen vs. Spouses Julian – G.R. No. 160408 (January 11, 2016)

SECOND EXAMINATION

PART IX: CHATTEL MORTGAGE (Articles 2140-2141) &

THE CHATTEL MORTGAGE LAW (ACT 1508)

PART X: PERSONAL PROPERTY SECURITY ACT (REPUBLIC ACT NO. 11057)

PART IX: REAL MORTGAGE (Articles 2124-2131), ACT 3135 &

FORECLOSURE OF REAL ESTATE MORTGAGE

a. Development Bank vs. CA – G.R. No. 110053 (October 16, 1995)

b. Spouses Cuyco vs. Spouses Cuyco – G.R. No. 168736 (April 19, 2006)
c. Canlas vs. Court of Appeals – G.R. No. 112160 (February 28, 2000)
d. State Investment vs. Court of Appeals – G.R. No. 115548 (March 5, 1996)
e. Spouses Flancia vs. CA – G.R. No. 146997 (April 26, 2005)
f. PNB vs. Corpuz – G.R. No. 180945 (February 12, 2010)
g. Homeowners Savings vs. Dalio – G.R. No. 153802 (March 11, 2005)
h. Coca-cola Bottlers vs. Spouses Soriano – G.R. No. 211232 (April 11, 2018)
i. Agricultural vs. Yusay – G.R. No. L-13313 (April 28, 1960)
j. Paradigm vs. BPI – G.R. No. 191174 (June 7, 2017)
k. Ros vs. PNB – G.R. No. 170166 (April 6, 2011)
l. PNB vs. Reyes, Jr. – G.R. No. 212483 (October 5, 2016)
m. Soriano vs. Galit – G.R. No. 156295 (Sept. 23, 2003)
n. Mendoza vs. Court of Appeals – G.R. No. 116710 (June 25, 2001)
o. Spouses Viola vs. Equitable – G.R. No. 177886 (November 27, 2008)
p. Producers Bank vs. Excelsa – G.R. No. 152071 (May 8, 2009)
q. PCSO vs. New Dagupan Metro Gas Corp. – G.R. No. 173171 (July 11, 2012)
r. Prudential Bank vs. Alviar – G.R. No. 150197 (July 28, 2005)
s. Asiatrust Development Bank vs. Tuble – G.R. No. 183987 (July 25, 2012)
t. PNB vs. Spouses Alonday – G.R. No. 171865 (October 12, 2016)
u. Bank of Commerce vs. Spouses Flores – G.R. No. 174006 (December 8, 2010)
v. Vega vs. SSS – G.R. No. 181672 (Sept. 20, 2010)
w. Pineda vs. Court of Appeals – G.R. No. 114172 (August 25, 2003)
x. Spouses Rosales vs. Spouses Suba – G.R. No. 137792 (August 12, 2003)
y. Ouano vs. CA – G.R. No. 129279 (March 4, 2003)
z. DBP vs. CA – G.R. No. 125838 (June 10, 2003)
aa. Century Savings vs. Spouses Samonte – G.R. No. 176212 (October 20, 2010)
bb. Planters Development vs. Lubiya Agro – G.R. No. 207976 (November 14, 2018)
cc. Cu Lai Chu vs. Laqui – G.R. No. 169190 (February 11, 2010)
dd. Mallari vs. GSIS – G.R. No. 157659 (January 25, 2010)
ee. Spouses Dulnuan vs. Metrobank – GR No. 196864 (July 8, 2015)
ff. Okabe vs. Saturnino – G.R. No. 196040 (August 26, 2014)
gg. Darcen vs. V.R. Gonzales – G.R. No. 199747 (April 3, 2013)
hh. Spouses Gatuslao vs. Yanson – GR No. 191540 (January 21, 2015)
ii. Spouses Landrito vs. Court of Appeals – G.R. No. 133079 (August 9, 2005)
jj. Goldenway vs. Equitable PCIB – G.R. No. 195540 (March 13, 2013)
kk. Zomer Development vs. Special 20th Division of CA – G.R No. 194461 (January 7, 2020)
ll. Spouses Guevarra vs. The Commoner Lending – GR No. 204672 (Feb. 18, 2015)
mm. Philbancor Finance vs. Court of Appeals – G.R. No. 129572 (June 26, 2000)

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Jose Maria College Foundation, Inc. Jhon Dave L. Macatol
 nn. Quezon City Mayor vs. RCBC – G.R. No. 171033 (August 3, 2010)
oo. Unionbank vs. Court of Appeals – G.R. No. 133366 (August 5, 1999)

PART X: ANTICHRESIS (Articles 2132-2139)

a. Alojado vs. Siongco – G.R. No. 27084 (December 31, 1927)

b. Barretto vs. Barretto – G.R. No. L-11933 (December 1, 1917)
c. Bangis vs. Heirs of Serafin – G.R. No. 190875 (June 13, 2012)
d. Macapinlac vs. Repide – G.R. No. 18574 (September 20, 1922)
e. Spouses Reyes vs. Heirs of Malance – G.R. No. 219071 (August 24, 2016)
f. Ramirez vs. Court of Appeals – G.R. No. L-38185 (September 24, 1986)

PART XII: CONCURRENCE & PREFERENCE OF CREDITS (Articles 2236-2251)

a. Barretto vs. Villanueva – G.R. No. L-14938 (December 29, 1962)

b. Philippine Savings vs. Lantin – G.R. No. L-33929 (September 2, 1983)
c. J.L. Bernardo vs. Court of Appeals – G.R. No. 105827 (January 31, 2000)
d. Atlantic vs. Herbal Cove – G.R. No. 148568 (March 20, 2003)
e. DBP vs. NLRC– G.R. No. 108031 (March 1, 1995)
f. Republic vs. Peralta – G.R. No. 56568 (May 20, 1987)
g. Metrobank vs. S.F. Naguiat – G.R. No. 178407 (March 18, 2015)

THIRD EXAMINATION

F. Course Grade Computation

Examinations (3 exams) - 75%
Written Requirements, Recitations and Quizzes - 20%
Attendance (1 point per hour) - 5%

For purposes of recitation, the following factors are to be considered:

• Preparedness
• Able to answer questions immediately, independently and intelligently
• Knowledge of the subject and the case

G. Online class link/meeting

Zoom: Zoom Meeting Link:

https://us06web.zoom.us/j/86223602957?pwd=TWJWUUoxM2d4aFJYazJzcnpEaU13UT09

Meeting ID: 862 2360 2957 Passcode: JMCFI

ULearning class code:

H. Course References
Textbook:
De Leon, Hector and De Leon, Hector Jr. (2021) Comments and Cases on Credit Transactions (Rex)

Websites:
www.chanrobles.com, http://sc.judiciary.gov.ph/, www.lawphil.net, www.mylegalwhiz.com

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I. School Calendar (excerpt)

FIRST SEMESTER
Freshmen Orientation July 17 (Monday)
START OF CLASSES (4-year program) July 17 (Monday)
START OF CLASSES (5-year program) July 21 (Friday)
PRELIMINARY EXAMINATIONS August 14- August 20
Philippine National Law Week September 12-17
2023 BAR EXAMINATIONS September 17, 20, 24
INVICTUS 2023 September 29-October 1
Study Week October 9-15, 2023
MIDTERM EXAMINATIONS October 16-22, 2023
Mental Health Break October 30- November 5, 2023
MOCK BAR EXAMINATIONS (Graduating Students) November 13- 26, 2023
Study Week November 27 – December 3, 2023
FINAL EXAMINATIONS December 4 – 10, 2023
END OF CLASSES (Non-graduating) December 10, 2023
START OF CLASSES (4th/5th Year) December 11, 2023
Deadline for Submission of Grades (Non-Graduating) December 28, 2023
SECOND SEMESTER
Resumption of Classes (Graduating) January 3, 2024
General Orientation for all Law Students January 5, 2024 (Friday)
START OF CLASSES (4-year program) January 8, 2024 (Tuesday)
START OF CLASSES (5-year program) January 12, 2024 (Friday)
PRELIMINARY EXAMINATIONS February 12-18, 2024
Reading/Study Week April 1-7, 2024
MIDTERM EXAMINATIONS April 8-14, 2024
MOCKBAR EXAMINATIONS (Graduating Students) April 15-28, 2024
Reading/Study Week April 29-5, 2024
Deadline for Submission of Applications for Graduation May 3, 2024
FINAL EXAMINATIONS (Non-graduating students) May 6 - May 12, 2024
END OF CLASSES (Non-graduating) May 12, 2024
Deadline for Submission of Grades (Non-graduating) May 31, 2024
GRADUATION DAY June 7, 2024
PREBAR/MOCKBAR LECTURES June 10-30, 2024
MOCKBAR EXAMINATIONS (Incoming 4th and 5th Year) July 1-14, 2024

J. Contact and other information

JHON DAVE L. MACATOL

[email protected]

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Jose Maria College Foundation, Inc. Jhon Dave L. Macatol