BANK OF AMERICA VS. AMERICAN REALTY Leave a comment Bank of America vs American Reat! Cor"oration #R $%%&'( )ecem*er +,- $,,, Facts/etition er 0rante1 oans to % forei0n cor"orations . As sec2rit!- t3e atter mort0a0e1 a "ro"ert! ocate1 in t3e /3ii""ines o4ne1 *! 3erein res"on1ent ARC. ARC is a t3ir1 "art! mort0a0or 43o "e10e1 its o4n "ro"ert! in favor of t3e % 1e*tor5forei0n cor"orations. T3e 1e*tors faie1 to "a! . T32s- "et itioner 6e1 coection s2its in for ei0n co2rts to enforce t3e oan. S2*se72ent!- it 6e1 a "etition in t3e S3eri8 to e9tra5:21ic ia! forecose t3e sai1 mort0a0e- 43ic3 4as 0rante1. On $+ Fe*r2ar! $,,%- "rivate res"on1ent 6e1 *efore t3e /asi0 RTC- Branc3 $;,- an action for 1ama0es a0ainst t3e "etitioner- for t3e atter<s act of forecosin0 e9tra5 :21icia! t3 e reaestate mort0a0es 1es"ite t3e "en1enc! of civis2its *efore forei0n co2rts for t3e coection of t3e "rinci"aoan. Iss2e=ON "etitioner<s act of 6in0 a coection s2it a0ainst t3e "rinci"a1e*tors for t3e recover! of t3e oan *efore forei0n co2rts constit2te1 a 4aiver of t3e reme1! of forecos2re. >e1Yes. $. Loan? Mort0a0e? reme1iesIn t3e a*sence of e9"ress stat2tor! "rovisions- a mort0a0e cre1itor ma! instit2te a0ainst t3e mort0a0e 1e*tor eit3er a "ersonaaction or 1e*t or a reaaction to forecose t3e mort0a0e. In ot3er 4or1s- 3e ma! "2rs2e eit3er of t3e t4o reme1ies- *2t not *ot3. B! s2c3 eection- 3is ca2se of action can *! no means *e im"aire1- for eac3 of t3e t4o reme1ies is com"ete in itsef. In o2r :2ris1iction- t3e reme1ies avaia*e to t3e mort0a0e cre1itor are 1eeme1 aternative an1 not c2m2ative. Nota*!- an eection of one reme1! o"erates as a 4aiver of t3e ot3er. For t3is "2r"ose- a reme1! is 1eeme1 c3osen 2"on t3e 6in0 of t3e s2it for coection or 2"on t3e 6in0 of t3e com"aint in an action for forecos2re of mort0a0e. As to e9tra:21iciaforecos2re- s2c3 reme1! is 1eeme1 eecte1 *! t3e mort0a0e cre1ito r 2"on 6in0 of t3e "etition not 4it3 an! co2rt of :2stice *2t 4it3 t3e O@ce of t3e S3eri8 of t3e "rovince 43ere t3e sae is to *e ma1e. In t3e case at *ar- "etitioner on! 3as one ca2se of action 43ic3 is non5"a!ment of t3e 1e*t. Nevert3eess- aternative reme1ies are avaia*e for its en:o!ment an1
