case digest cred trans

8/13/2019 Case Digest Cred Trans

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THE PEOPLE OF THE PHILIPPINE ISLANDS, plaintiff-appellee,vs.VENANCIO CONCEPCION, defendant-appellant.G.R. N. L-!"!"# Nve$%e& '", !"''

FACTS( Venan)i Cn)ep)in, P&esident f t*e P*ilippineNatinal +an, %eteen Ap&il !#, !"!", and a/ 0, !"!",a1t*&i2ed an e3tensin f )&edit in fav& f 4P1n /

Cn)ep)in, S. en C.4 in t*e a$1nt f P5##,###.

P1&s1ant t t*is a1t*&i2atin, )&edit a66&e6atin6 P5##,###,as 6&anted t*e fi&$ f 4P1n / Cn)ep)in, S. en C.,4 t*enl/ se)1&it/ &e71i&ed )nsistin6 f si3 de$and ntes. T*entes, t6et*e& it* t*e inte&est, e&e taen 1p and paid %/81l/ !0, !"!".

4P1n / Cn)ep)in, S. en C.4 as a )pa&tne&s*ip)apitali2ed.

Venan)i Cn)ep)in, as P&esident f t*e P*ilippine Natinal+an and as $e$%e& f t*e %a&d f di&e)t&s f t*is %an,as )*a&6ed in t*e C1&t f Fi&st Instan)e f Ca6a/an it* avilatin f se)tin 59 f A)t N. '0:0.

Section 35 of Act No. 2747, effective on February 20, 1918 ,;1st $entined, t *i)* &efe&en)e $1st *e&eafte& &epeatedl/%e $ade, &eads as flls( 4The Nationa !an" #ha not,$irecty or in$irecty, %rant oan# to any of the &e&ber# ofthe boar$ of $irector# of the ban" nor to a%ent# of thebranch ban"#.'Se)tin :" f t*e sa$e A)t p&vides( 4An/pe&sn * s*all vilate an/ f t*e p&visins f t*is A)t s*all%e p1nis*ed %/ a fine nt t e3)eed ten t*1sand pess, & %/i$p&isn$ent nt t e3)eed five /ea&s, & %/ %t* s1)* fineand i$p&isn$ent.4 The#e t(o #ection# (ere in effect in1919 (hen the ae%e$ una(fu act# too" )ace, but (erere)eae$ by Act No. 2938, a))rove$ on *anuary 30, 1921.

ISS)&edit? and nt f a 4 p&esta$4>lan?.

T- /N-T /F -T

The 'cre$it' of an in$ivi$ua &ean# hi# abiity to borro(&oney by virtue of the confi$ence or tru#t re)o#e$ by aen$er that he (i )ay (hat he &ay )ro&i#e . >Dnnell vs.8nes @!:B, !5 Ala., :"# +1vie&s La Di)tina&/.? A 4lan4$eans t*e delive&/ %/ ne pa&t/ and t*e &e)eipt %/ t*e t*e&pa&t/ f a 6iven s1$ f $ne/, 1pn an a6&ee$ent, e3p&ess &i$plied, t &epa/ t*e s1$ laned, it* & it*1t inte&est.>Pa/ne vs. Ga&dine& @!:B, '" N. ., !:, !0.?

The conce##ion of a 'cre$it' nece##ariy invove# the%rantin% of 'oan#' u) to the i&it of the a&ount fie$ inthe 'cre$it,'

6a# the %rantin% of a cre$it of 300,000 to theco)artner#hi) 'uno y once)cion, S. en .,' by enancioonce)cion, re#i$ent of the hii))ine Nationa !an", a'oan' or a '$i#count'+

C1nsel a&61e t*at *ile se)tin 59 f A)t N. '0:0 p&*i%itst*e 6&antin6 f a 4lan,4 it des nt p&*i%it *at is )$$nl/

nn as a 4dis)1nt.4

In a lette& dated A161st 0, !"!, H. Pa&e& =illis, t*enP&esident f t*e Natinal +an, in71i&ed f t*e Ins1la& A1dit*et*e& se)tin 50 f A)t N. '!' as intended t appl/ tdis)1nts as ell as t lans. T*e &1lin6 f t*e A)tin6 Ins1la&A1dit&, dated A161st !!, !"!, as t t*e effe)t t*at saidse)tin &efe&&ed t lans alne, and pla)ed n &est&i)tin 1pndis)1nt t&ansa)tins. It %e)$es $ate&ial, t*e&ef&e, tdis)ve& t*e distin)tin %eteen a 4lan4 and a 4dis)1nt,4 andt as)e&tain if t*e instant t&ansa)tin )$es 1nde& t*e fi&st t*e latte& den$inatin.

Dis)1nts a&e fav&ed %/ %ane&s %e)a1se f t*ei& li71idnat1&e, 6&in6, as t*e/ d, 1t f an a)t1al, live, t&ansa)tin+1t in its last anal/sis, t dis)1nt a pape& is nl/ a $de flanin6 $ne/, it*, *eve&, t*ese distin)tins( >!? In adis)1nt, inte&est is ded1)ted in advan)e, *ile in a laninte&est is taen at t*e e3pi&atin f a )&edit >'? a dis)1nt isala/s n d1%le-na$e pape& a lan is 6ene&all/ n sin6le-na$e pape&.

once$in%, (ithout $eci$in%, that, a# rue$ by then#uar Au$itor, the a( cover# oan# an$ not $i#count#yet the concu#ion i# inevitabe that the $e&an$ note##i%ne$ by the fir& 'uno y once)cion, S. en .' (ere no$i#count )a)er but (ere &ere evi$ence# of in$ebte$ne##becau#e 1 intere#t (a# not $e$ucte$ fro& the face of thenote#, but (a# )ai$ (hen the note# fe $ue: an$ 2 they

(ere #in%e;na&e an$ not $oube;na&e )a)er.

T*e fa)ts f t*e instant )ase *avin6 &elatin t t*isp*ase f t*e a&61$ent a&e nt essentiall/ diffe&ent f&$ t*efa)ts in t*e +inal%a6an Estate )ase. *u#t a# there it (a#$ecare$ that the o)eration# con#titute$ a oan an$ not a$i#count, #o #hou$ (e here ay $o(n the #a&e ruin%.

III. =as t*e 6&antin6 f a )&edit f P5##,### t t*e)pa&tne&s*ip, 4P1n / Cn)ep)in, S. en C.4 %/ Venan)iCn)ep)in, P&esident f t*e P*ilippine Natinal +an, an4indi&e)t lan4 it*in t*e $eanin6 f se)tin 59 f A)t N'0:0

C1nsel a&61e t*at a lan t t*e pa&tne&s*ip 4P1n /

Cn)ep)in, S. en C.4 as nt an 4indi&e)t lan.4 In t*is)nne)tin, it s*1ld %e &e)alled t*at the (ife of the$efen$ant he$ one;haf of the ca)ita of thi# )artner#hi).

In t*e inte&p&etatin and )nst&1)tin f stat1tes, t*ep&i$a&/ &1le is t as)e&tain and 6ive effe)t t t*e intentin t*e Le6islat1&e. n thi# in#tance, the )ur)o#e of the


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of hi# (ife># bu#ine## venture, a oan to )artner#hi) of(hich the (ife of a $irector i# a &e&ber, fa# (ithin the)rohibition.

Va&i1s p&visins f t*e Civil se&ve t esta%lis* t*efa$ilia& &elatins*ip )alled a )n;16al pa&tne&s*ip. >A&ti)les!5!9, !5"5, !:#!, !:#0, !:#, and !:!' )an %e spe)iall/nted.? A oan, therefore, to a )artner#hi) of (hich the (ifeof a $irector of a ban" i# a &e&ber, i# an in$irect oan to#uch $irector.

=e a&e f pinin t*e stat1te f&%ade t*e lan t *is

)pa&tne&s*ip fi&$ as ell as t *i$self di&e)tl/. T*e lan as$ade indi&e)tl/ t *i$ t*&16* *is fi&$.

IV. C1ld Venan)i Cn)ep)in, P&esident f t*e P*ilippineNatinal +an, %e )nvi)ted f a vilatin f se)tin 59 f A)tN. '0:0 in &elatin it* se)tin :" f t*e sa$e A)t, *ent*ese p&tins f A)t N. '0:0 e&e &epealed %/ A)t N. '"5,p&i& t t*e findin6 f t*e inf&$atin and t*e &enditin f t*e;1d6$ent

As nted aln6 ta&d t*e %e6innin6 f t*is pinin,se)tin :" f A)t N. '0:0, in &elatin t se)tin 59 f t*esa$e A)t, p&vides a p1nis*$ent f& an/ pe&sn * s*allvilate an/ f t*e p&visins f t*e A)t. It is )ntended,*eve&, %/ t*e appellant, t*at t*e &epeal f t*ese se)tins fA)t N. '0:0 %/ A)t N. '"5 *as se&ved t tae aa/ t*e%asis f& )&i$inal p&se)1tin.

G.R. N. !9:0 a&)* !, '##0

CAROLN . GARCIA, Petitine&,vs.RICA ARIE S. THIO, Respndent.

n February 1995, re#)on$ent ica ?arie S. Thio receive$

fro& )etitioner aroyn ?. @arcia a cro##e$ chec": datedFe%&1a&/ ':, !""9 in t*e a$1nt f spe)ifi)all/,n a&)* ':, Ap&il ', 81ne ' and 81l/ ', all in !""9? t*ea$1nt f %? t*e )*e) $a/ %e ne6tiated nl/ n)eKtne * *as an a))1nt it* t*e %an >)? and t*e a)t

)&ssin6 t*e )*e) se&ves as a&nin6 t t*e *lde& t*at t*e)*e) *as %een iss1ed f& a definite p1&pse s t*at *e $1sin71i&e if *e *as &e)eived t*e )*e) p1&s1ant t t*at p1&pset*e&ise, *e is nt a *lde& in d1e )1&se.

on#euenty, the recei)t of the Gcro##e$H chec" byGre#)on$entH i# not the i##uance an$ $eivery to the )ayeein conte&)ation of a( #ince the atter i# not the )er#on(ho cou$ ta"e the chec"# a# a ho$er, i.e., as a pa/ee ind&see t*e&ef, it* intent t t&ansfe& title t*e&et. Neithecou$ #he be $ee&e$ a# an a%ent of ?ariou Santia%o (ithre#)ect to the chec"# becau#e #he (a# &erey faciitatin%the tran#action# bet(een the for&er an$ G)etitionerH.

A oan i# a rea contract, not con#en#ua, an$ a# #uch i#)erfecte$ ony u)on the $eivery of the obIect of thecontract.25 Thi# i# evi$ent in Art. 1934 of the ivi o$e(hich )rovi$e#

An a))epted p&$ise t delive& s$et*in6 %/ a/ )$$dat1$ & si$ple lan is %indin6 1pn t*e pa&ties, %1t*e )$$dat1$ & si$ple lan itself s*all nt %e pe&fe)ted1ntil t*e delive&/ f t*e %;e)t f t*e )nt&a)t. >E$p*asiss1pplied?

)on $eivery of the obIect of the contract of oan in thi#ca#e the &oney receive$ by the $ebtor (hen the chec"#(ere enca#he$ the $ebtor acuire# o(ner#hi) of #uch


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&oney or oan )rocee$# an$ i# boun$ to )ay the cre$itoran eua a&ount.2Ct i# un$i#)ute$ that the chec"# (ere $eivere$ tore#)on$ent. o(ever, the#e chec"# (ere cro##e$ an$)ayabe not to the or$er of re#)on$ent but to the or$er ofa certain ?ariou Santia%o.

Thu# the &ain ue#tion to be an#(ere$ i# (ho borro(e$&oney fro& )etitioner = re#)on$ent or Santia%o+

Petitine& insists t*at it as 1pn &espndentJs inst&1)tin t*at

%t* )*e)s e&e $ade pa/a%le t Santia6.'0 S*e $aintainst*at it as als 1pn &espndentJs inst&1)tin t*at %t* )*e)se&e delive&ed t *e& >&espndent? s t*at s*e )1ld, in t1&n,delive& t*e sa$e t Santia6.' F1&t*e&$&e, s*e a&61es t*atn)e &espndent &e)eived t*e )*e)s, t*e latte& *adpssessin and )nt&l f t*e$ s1)* t*at s*e *ad t*e )*i)e teit*e& f&a&d t*e$ t Santia6 >* as al&ead/ *e& de%t&?,t &etain t*e$ & t &et1&n t*e$ t petitine&.'"

SS- 6hether or not there (a# $eivery in thi# ca#e.

-f& t*e $an1fa)t1&e f ;1tesa)s? P':#,"##.## t pa/ t*e %alan)e f t*e p1&)*ase p&i)ef t*e ;1te $ill $a)*ine&/ and e71ip$ent and P",!##.## asadditinal &in6 )apital.

Pa&ent*eti)all/, it $a/ %e $entined t*at t*e ;1te $il$a)*ine&/ *ad al&ead/ %een p1&)*ased %/ Sa1&a n t*est&en6t* f a lette& f )&edit e3tended %/ t*e P&1dential +anand T&1st C., and a&&ived in Dava Cit/ in 81l/ !"95 and t*at se)1&e its &elease it*1t fi&st pa/in6 t*e d&aft, Sa1&a, In)e3e)1ted a t&1st &e)eipt in fav& f t*e said %an.

/n *anuary 7, 1954 F )a##e$ e#oution No. 145

a))rovin% the oan a))ication for 500,000.00, to be#ecure$ by a fir#t &ort%a%e on the factory bui$in% to becon#tructe$, the an$ #ite thereof, an$ the &achinery an$eui)&ent to be in#tae$.

T*at &. &s. Ra$n E. Sa1&a, In)en)ia A&ellan, Ani)etCal%/ and G&e6&ia Esta%ill and C*ina En6inee&s, Ltds*all si6n t*e p&$iss&/ ntes ;intl/ it* t*e %&&e&)&p&atin

T*at &elease s*all %e $ade at t*e dis)&etin f t*eRe*a%ilitatin Finan)e C&p&atin, s1%;e)t t availa%ilit/ f1nds, and as t*e )nst&1)tin f t*e fa)t&/ %1ildin6s


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p&6&esses, t %e )e&tified t %/ an app&aise& f t*isC&p&atin4

It appea&s, *eve&, t*at despite t*e f&$al e3e)1tin f t*elan a6&ee$ent t*e &ee3a$inatin )nte$plated in Resl1tinN. 05 p&)eeded. In a $eetin6 f t*e RFC +a&d fGve&n&s n 81ne !#, !"9:, at *i)* Ra$n Sa1&a,P&esident f Sa1&a, In)., as p&esent, it as de)ided t &ed1)et*e lan f&$ P9##,###.## t P5##,###.##. Resl1tin N.5"" as app&ved. PROVIDED t*at all te&$s and )nditinsf Resl1tin N. !:9, ).s., nt in)nsistent *e&eit*, s*all

&e$ain in f1ll f&)e and effe)t.4

/n *une 19, 1954 F.. ain%, (ho ha$ #i%ne$ the)ro&i##ory note for hina -n%ineer#


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it( 4>!? t*at t*e &a $ate&ials needed %/ t*e %&&e&-)&p&atin t )a&&/ 1t its pe&atin a&e availa%le in t*ei$$ediate vi)init/ and >'? t*at t*e&e is p&spe)t f in)&easedp&d1)tin t*e&ef t p&vide ade71atel/ f& t*e &e71i&e$entsf t*e fa)t&/.4 T*e i$psitin f t*se )nditins as %/ n$eans a deviatin f&$ t*e te&$s f t*e a6&ee$ent, %1t &at*e&a step in its i$ple$entatin. T*e&e as nt*in6 in said)nditins t*at )nt&adi)ted t*e te&$s laid dn in RFCResl1tin N. !:9, passed n 8an1a&/ 0, !"9:, na$el/ K4t*at t*e p&)eeds f t*e lan s*all %e 1tili2ed e3)l1sivel/ f&t*e fllin6 p1&pses( f& )nst&1)tin f fa)t&/ %1ildin6 K

P'9#,###.## f& pa/$ent f t*e %alan)e f p1&)*ase p&i)e f$a)*ine&/ and e71ip$ent K P':#,"##.## f& &in6 )apitalK P",!##.##.' -vi$enty Saura, nc. reaiLe$ that it cou$not &eet the con$ition# reuire$ by F, an$ #o (rote it#etter of *anuary 21, 1955, #tatin% that oca Iute '(i notbe abe in #ufficient uantity thi# year or )robaby netyear,' an$ a#"in% that out of the oan a%ree$ u)on the #u&of C7,58C.09 be reea#e$ 'for ra( &ateria# an$ abor.4T*is as a deviatin f&$ t*e te&$s laid dn in Resl1tinN. !:9 and e$%died in t*e $&t6a6e )nt&a)t, i$pl/in6 as itdid a dive&sin f pa&t f t*e p&)eeds f t*e lan t p1&psest*e& t*an t*se a6&eed 1pn.

6hen F turne$ $o(n the reue#t in it# etter of *anuary25, 1955 the ne%otiation# (hich ha$ been %oin% on for thei&)e&entation of the a%ree&ent reache$ an i&)a##e.Sa1&a, In). %vi1sl/ as in n psitin t )$pl/ it* RFCs)nditins. S instead f din6 s and insistin6 t*at t*e lan %e&eleased as a6&eed 1pn, Sa1&a, In). ased t*at t*e $&t6a6e%e )an)elled, *i)* as dne n 81ne !9, !"99.

The action thu# ta"en by both )artie# (a# in the nature of&utua $e#i#tance = (hat ?anre#a ter '&utuo$i#en#o' 1 = (hich i# a &o$e of etin%ui#hin%obi%ation#. t i# a conce)t that $erive# fro& the )rinci)ethat #ince &utua a%ree&ent can create a contract, &utua$i#a%ree&ent by the )artie# can cau#e it# etin%ui#h&ent.2

T*e s1%se71ent )nd1)t f Sa1&a, In). )nfi&$s t*isdesistan)e. It did nt p&test a6ainst an/ alle6ed %&ea)* f)nt&a)t %/ RFC, & even pint 1t t*at t*e latte&s stand asle6all/ 1n;1stified. Its &e71est f& )an)ellatin f t*e $&t6a6e)a&&ied n &ese&vatin f *ateve& &i6*ts it %elieved it $i6*t*ave a6ainst RFC f& t*e latte&s nn-)$plian)e. In !"' iteven applied it* D+P f& ant*e& lan t finan)e a &i)e and)&n p&;e)t, *i)* appli)atin as disapp&ved. t (a# onyin 19C4, nine year# after the oan a%ree&ent ha$ beencancee$ at it# o(n reue#t, that Saura, nc. brou%ht thi#action for $a&a%e#.A the#e circutance# $e&on#tratebeyon$ $oubt that the #ai$ a%ree&ent ha$ beenetin%ui#he$ by &utua $e#i#tance = an$ that on theinitiative of the )aintiff;a))eee it#ef.

@G.R. N. !555'. Fe%&1a&/ !9, '##'B

+PI INVESTENT CORPORATION, petitine&, vs. HON.COAIDC?, t*e p&ede)ess& f petitine& +PIIC, f&t*e )nst&1)tin f a *1se n *is lt. Said *1se and lt e&e$&t6a6ed t AIDC t se)1&e t*e lan.

S$eti$e in !"#, Ra sld t*e *1se and lt t p&ivate&espndents ALS and Antni Litn;1a f& P9#,###. T*e/

paid P59#,### in )as* and ass1$ed t*e P9##,### %alan)e RaJs inde%tedness it* AIDC.

The atter, ho(ever, (a# not (iin% to eten$ the o$intere#t rate to )rivate re#)on$ent# an$ )ro)o#e$ to %rantthe& a ne( oan of 500,000 to be a))ie$ to oaE# $ebtan$ #ecure$ by the #a&e )ro)erty, at an intere#t rate o20D )er annu& an$ #ervice fee of 1D )er annu& on theout#tan$in% )rinci)a baance pa/a%le it*in ten /ea&s ine71al $nt*l/ a$&ti2atin f P","".9 an$ )enaty intere#at the rate of 21D )er annu& )er $ay fro& the $ate the

a&ortiLation beca&e $ue an$ )ayabe.

on#euenty, in ?arch 1981, )rivate re#)on$ent#eecute$ a &ort%a%e $ee$ containin% the above#ti)uation# (ith the )rovi#ion that )ay&ent of the&onthy a&ortiLation #ha co&&ence on ?ay 1, 1981.

On A161st !5, !"', ALS and Litn;1a 1pdated RaJsa&&ea&a6es %/ pa/in6 +PIIC t*e s1$ f P!"#,#!.59.

n *une 1984, ! in#titute$ foreco#ure )rocee$in%#a%ain#t )rivate re#)on$ent# on the %roun$ that they faie$to )ay the &ort%a%e in$ebte$ne## (hich fro& ?ay 1, 1981to *une 30, 1984, a$1nted t F1& H1nd&ed Sevent/ FiveT*1sand Five H1nd&ed Ei6*t/ Five and 5!!## Pess>P:09,99.5!?. A nti)e f s*e&iffJs sale as p1%lis*ed nA161st !5, !":.

/n February 28, 1985, A


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!"' t 81ne !":, t*e ttal a$&ti2atin d1e as nl/P!":,"#.:5.

Eviden)e s*ed t*at p&ivate &espndents *ad anve&pa/$ent, %e)a1se as f 81ne !":, t*e/ al&ead/ paid attal a$1nt f P'#!,0"!.".

Therefore, there (a# no ba#i# for ! to etraIu$iciayforeco#e the &ort%a%e an$ cau#e the )ubication inne(#)a)er# concernin% )rivate re#)on$ent#E $einuencyin the )ay&ent of their oan.

SS- 6-T- / N/T A /NTAT /F


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FACTS( S$eti$e in !"0", p&ivate &espndent F&anlin Vivesas ased %/ *is nei6*%& and f&iend An6eles San)*e2 t *elp*e& f&iend and tn$ate, Cl. A&t1& D&nilla, in in)&p&atin6*is %1siness, t*e Ste&ela a&etin6 and Se&vi)es >QSte&ela f&%&evit/?.

Spe)ifi)all/, San)*e2 ased p&ivate &espndent t depsit in a%an a )e&tain a$1nt f $ne/ in t*e %an a))1nt f Ste&elaf& p1&pses f its in)&p&atin. S*e ass1&ed p&ivate&espndent t*at *e )1ld it*d&a *is $ne/ f&$ saida))1nt it*in a $nt*Js ti$e. P&ivate &espndent ased

San)*e2 t %&in6 D&nilla t t*ei& *1se s t*at t*e/ )1lddis)1ss San)*e2Js &e71est.@5B

On a/ ", !"0", p&ivate &espndent, San)*e2, D&nilla and a)e&tain Est&ella D1$a6pi, D&nillaJs p&ivate se)&eta&/, $et anddis)1ssed t*e $atte&. Thereafter, reyin% on the a##urance#an$ re)re#entation# of SancheL an$ oronia, )rivatere#)on$ent i##ue$ a chec" in the a&ount of T(o un$re$Thou#an$ e#o# 200,000.00 in favor of Sterea.

P&ivate &espndent inst&1)ted *is ife, &s. In)en)ia Vives, ta))$pan/ D&nilla and San)*e2 in o)enin% a #avin%#account in the na&e of Sterea in the !uen$ia, ?a"atibranch of ro$ucer# !an" of the hii))ine#. o(ever,ony SancheL, ?r#. ive# an$ u&a%)i (ent to the ban" to$e)o#it the chec".

T*e/ *ad it* t*e$ an a1t*&i2atin lette& f&$ D&nillaa1t*&i2in6 San)*e2 and *e& )$panins, Qin )&dinatin it*&. R1f Atien2a, to o)en an account for Sterea ?ar"etin%Service# in the a&ount of 200,000.00. n o)enin% theaccount, the authoriLe$ #i%natorie# (ere nocencia ive#an$or An%ee# SancheL. A pass% f& Savin6s A))1ntN. !#-!90 as t*e&eafte& iss1ed t &s. Vives.@:B

S1%se71entl/, p&ivate &espndent lea&ned t*at Ste&ela as nln6e& *ldin6 ffi)e in t*e add&ess p&evi1sl/ 6iven t *i$.Ala&$ed, *e and *is ife ent t t*e +an t ve&if/ if t*ei&$ne/ as still inta)t. The ban" &ana%er referre$ the& to

?r. ufo AtienLa, the a##i#tant &ana%er, (ho infor&e$the& that )art of the &oney in Savin%# Account No. 10;15C7 ha$ been (ith$ra(n by oronia, an$ that ony90,000.00 re&aine$ therein. He lieise tld t*e$ t*at &s.Vives )1ld nt it*d&a said &e$ainin6 a$1nt %e)a1se it*ad t anse& f& s$e pstdated )*e)s iss1ed %/ D&nilla.

A))&din6 t Atien2a, afte& &s. Vives and San)*e2 penedSavin6s A))1nt N. !#-!90, D&nilla pened C1&&entA))1nt N. !#-#5'# f& Ste&ela and a1t*&i2ed t*e +an tde%it Savin6s A))1nt N. !#-!90 f& t*e a$1nts ne)essa&/t )ve& ve&d&ain6s in C1&&ent A))1nt N. !#-#5'#. Inpenin6 said )1&&ent a))1nt, Ste&ela, t*&16* D&nilla,%tained a lan f P!09,###.## f&$ t*e +an. T )ve&pa/$ent t*e&ef, D&nilla iss1ed t*&ee pstdated )*e)s, all

f *i)* e&e dis*n&ed. Atien2a als said t*at D&nilla)1ld assi6n & it*d&a t*e $ne/ in Savin6s A))1nt N.!#-!90 %e)a1se *e as t*e sle p&p&iet& f Ste&ela.@9B

rivate re#)on$ent in#titute$ an action for recovery of#u& of &oney in the e%iona Tria ourt T a%ain#toronia, SancheL, u&a%)i an$ )etitioner. He als filed)&i$inal a)tins a6ainst D&nilla, San)*e2 and D1$a6pi int*e RTC. Heve&, San)*e2 passed aa/ n a&)* !, !"9*ile t*e )ase as pendin6 %ef&e t*e t&ial )1&t.

RTC senten)ed defendants A&t1& 8. D&nila, Est&ellaD1$a6pi and P&d1)e&s +an f t*e P*ilippines t pa/ plaintifF&anlin Vives ;intl/ and seve&all/

>a? t*e a$1nt f P'##,###.##, &ep&esentin6 t*e $ne/depsited, it* inte&est at t*e le6al &ate f&$ t*e filin6 f t*e)$plaint 1ntil t*e sa$e is f1ll/ paid

CA affi&$ed in tt t*e de)isin f t*e RTC.@"B

THE HONORA+LE CO


8/18

S-?- /T SAJS

No error (a# co&&itte$ by the ourt of A))ea# (hen itrue$ that the tran#action bet(een )rivate re#)on$ent an$oronia (a# a co&&o$atu& an$ not a &utuu&.

STN@S /??/AT? v#. ?T?

A circu)ect ea&ination of the recor$# revea# that the

tran#action bet(een the& (a# a co&&o$atu&. Artice1933 of the ivi o$e $i#tin%ui#he# bet(een the t(o"in$# of oan# in thi# (i#e

+/ t*e )nt&a)t f lan, ne f t*e pa&ties delive&s t ant*e&,eit*e& s$et*in6 not con#u&abe #o that the atter &ay u#ethe #a&e for a certain ti&e an$ return it, in (hich ca#e thecontract i# cae$ a co&&o$atu&:

or &oney or other con#u&abe thin%, u)on the con$itionthat the #a&e a&ount of the #a&e "in$ an$ uaity #habe )ai$, in (hich ca#e the contract i# #i&)y cae$ a oanor &utuu&.

C$$dat1$ is essentiall/ 6&at1it1s.

Si$ple lan $a/ %e 6&at1it1s & it* a stip1latin t pa/inte&est.

In )$$dat1$, t*e %ail& &etains t*e ne&s*ip f t*e t*in6laned, *ile in si$ple lan, ne&s*ip passes t t*e%&&e&.

T*e f&e6in6 p&visin see$s t i$pl/ t*at if t*e s1%;e)t ft*e )nt&a)t is a )ns1$a%le t*in6, s1)* as $ne/, t*e)nt&a)t 1ld %e a $1t11$.

o(ever, there are #o&e in#tance# (here a co&&o$atu&&ay have for it# obIect a con#u&abe thin%. Artice 193C

of the ivi o$e )rovi$e#

Cns1$a%le 6ds $a/ %e t*e s1%;e)t f )$$dat1$ if t*ep1&pse f t*e )nt&a)t is nt t*e )ns1$ptin f t*e %;e)t, a#(hen it i# &erey for ehibition.

T*1s, if )ns1$a%le 6ds a&e laned nl/ f& p1&pses fe3*i%itin, & *en t*e intentin f t*e pa&ties is t lend)ns1$a%le 6ds and t *ave t*e ve&/ sa$e 6ds &et1&nedat t*e end f t*e pe&id a6&eed 1pn, t*e lan is a)$$dat1$ and nt a $1t11$.

A# correcty )ointe$ out by both the ourt of A))ea# an$the tria court, the evi$ence #ho(# that )rivate re#)on$ent

a%ree$ to $e)o#it hi# &oney in the #avin%# account ofSterea #)ecificay for the )ur)o#e of &a"in% it a))earOthat #ai$ fir& ha$ #ufficient ca)itaiLation forincor)oration, (ith the )ro&i#e that the a&ount #ha bereturne$ (ithin thirty 30 $ay#.PG29H rivate re#)on$ent&erey Oacco&&o$ate$P oronia by en$in% hi# &oney(ithout con#i$eration, a# a favor to hi# %oo$ frien$SancheL. t (a# ho(ever cear to the )artie# to thetran#action that the &oney (ou$ not be re&ove$ fro&StereaE# #avin%# account an$ (ou$ be returne$ to)rivate re#)on$ent after thirty 30 $ay#.

D&nillaJs atte$pts t &et1&n t p&ivate &espndent t*e a$1ntf P'##,###.## *i)* t*e latte& depsited in Ste&elaJs a))1nt

t6et*e& it* an additinal P!',###.##, alle6edl/ &ep&esentin6inte&est n t*e $1t11$, $i$ not convert the tran#action fro&a co&&o$atu& into a &utuu& becau#e #uch (a# not theintent of the )artie# an$ becau#e the a$$itiona 12,000.00corre#)on$# to the fruit# of the en$in% of the 200,000.00A&ti)le !"59 f t*e Civil Cde e3p&essl/ states t*at OGtHhebaiee in co&&o$atu& acuire# the u#e of the thin%oane$ but not it# fruit#. Hen)e, it as nl/ p&pe& fD&nilla to re&it to )rivate re#)on$ent the intere#a))&1in6 t t*e latte&Js $ne/ depsited it* petitine&.

Neit*e& des t*e C1&t a6&ee it* petitine&Js )ntentin t*at iis nt slida&il/ lia%le f& t*e &et1&n f p&ivate &espndentJs$ne/ %e)a1se it as nt p&iv/ t t*e t&ansa)tin %eteenD&nilla and p&ivate &espndent. T*e nat1&e f saidt&ansa)tin, t*at is, *et*e& it is a $1t11$ & a )$$dat1$*as n %ea&in6 n t*e 71estin f petitine&Js lia%ilit/ f& t*e&et1&n f p&ivate &espndentJs $ne/ %e)a1se t*e fa)t1a)i&)1$stan)es f t*e )ase )lea&l/ s* t*at petitine&, t*&16*its e$pl/ee &. Atien2a, as pa&tl/ &espnsi%le f& t*e lss fp&ivate &espndentJs $ne/ and is lia%le f& its &estit1tin.

T*e C1&t f Appeals )&&e)tl/ *eld t*at 1nde& A&ti)le '!# t*e Civil Cde, petitine& is lia%le f& p&ivate &espndentJs lssand is slida&il/ lia%le it* D&nilla and D1$a6pi f& t*e &et1&nf t*e P'##,###.## #ince it i# cear that )etitioner faie$ to)rove that it eerci#e$ $ue $ii%ence to )revent theunauthoriLe$ (ith$ra(a# fro& StereaE# #avin%# accountan$ that it (a# not ne%i%ent in the #eection an$#u)ervi#ion of AtienLa. A))&din6l/, n e&&& as )$$itted%/ t*e appellate )1&t in t*e aa&d f a)t1al, $&al ande3e$pla&/ da$a6es, att&ne/Js fees and )sts f s1it t p&ivate&espndent.

FIRST [email protected]. N. !:5:. 81ne 5, '##:B

COLITO T. PA8


9/18

nt s* 1p & )$$1ni)ate it* *i$. G1eva&&a insisted t*atneit*e& *e n& Pa;1/ *as valid title t t*e lt.

The uin% of the ?T

T*e TC &1led t*at t*e s1%;e)t f t*e a6&ee$ent %eteenPa;1/ and G1eva&&a is t*e *1se and nt t*e lt. Pa;1/ ist*e ne& f t*e *1se, and *e alled G1eva&&a t 1se t*e*1se nl/ %/ tle&an)e. T*1s, G1eva&&aJs &ef1sal t va)atet*e *1se n Pa;1/Js de$and $ade G1eva&&aJs )ntin1ed

pssessin f t*e *1se ille6al.

T*e R1lin6 f t*e RTC

T*e RTC 1p*eld t*e as1nd1an, *i)* esta%lis*ed t*elandl&d and tenant &elatins*ip %eteen Pa;1/ andG1eva&&a. T*e te&$s f t*e as1nd1an %1nd G1eva&&a t&et1&n pssessin f t*e *1se n de$and.

T*e RTC &e;e)ted G1eva&&aJs )lai$ f a %ette& &i6*t 1nde&P&)la$atin N. !50, t*e Revised Natinal Gve&n$entCente& H1sin6 P&;e)t Cde f Pli)ies and t*e& pe&tinentlas. In an e;e)t$ent s1it, t*e RTC *as n pe& t de)ideG1eva&&aJs &i6*ts 1nde& t*ese las. T*e RTC de)la&ed t*at inan e;e)t$ent )ase, t*e nl/ iss1e f& &esl1tin is $ate&ial &p*/si)al pssessin, nt ne&s*ip.

T*e R1lin6 f t*e C1&t f Appeals

T*e C1&t f Appeals de)la&ed t*at Pa;1/ and G1eva&&a a&es71atte&s. Pa;1/ and G1eva&&a ille6all/ ))1pied t*e)ntested lt *i)* t*e 6ve&n$ent ned.

Pe&e2, t*e pe&sn f&$ *$ Pa;1/ a)71i&ed *is &i6*ts, asals a s71atte&. Pe&e2 *ad n &i6*t & title ve& t*e lt %e)a1seit is p1%li) land.

T*e C1&t f Appeals &eve&sed t*e TC and RTC &1lin6s,*i)* *eld t*at t*e as1nd1an %eteen Pa;1/ and G1eva&&a

)&eated a le6al tie ain t t*at f a landl&d and tenant&elatins*ip. The ourt of A))ea# rue$ that theQa#un$uan i# not a ea#e contract but a co&&o$atu&becau#e the a%ree&ent i# not for a )rice certain.

aIuyo rai#e# the foo(in% i##ue# for re#oution

=HETHER THE CO


10/18

another year fro& 8 ?ay 1949 to 7 ?ay 1950 an$ reue#te$the return of the other t(o.

On '9 a&)* !"9# 8se V. +a6tas &te t t*e Di&e)t& fAni$al Ind1st&/ t*at *e 1ld pa/ t*e val1e f t*e t*&ee %1lls.On !0 O)t%e& !"9# *e &eite&ated *is desi&e t %1/ t*e$ at aval1e it* a ded1)tin f /ea&l/ dep&e)iatin t %e app&ved %/t*e A1dit& Gene&al.

/n 19 /ctober 1950 the irector of Ani&a n$u#trya$vi#e$ hi& that the boo" vaue of the three bu# cou$

not be re$uce$ an$ that they either be returne$ or theirboo" vaue )ai$ not ater than 31 /ctober 1950.

*o#e . !a%ta# faie$ to )ay the boo" vaue of the threebu# or to return the&.S, n '# De)e$%e& !"9# in t*eC1&t f Fi&st Instan)e f anila t*e Rep1%li) f t*e P*ilippines)$$en)ed an a)tin a6ainst *i$ p&a/in6 t*at *e %e &de&edt &et1&n t*e t*&ee %1lls laned t *i$ & t pa/ t*ei& %val1e in t*e ttal s1$ f P5,':!.:9 and t*e 1npaid %&eedin6fee in t*e s1$ f P!"".', %t* it* inte&ests, and )sts andt*at t*e& ;1st and e71ita%le &elief %e 6&anted in >)ivil N.!'!?.

On 9 81l/ !"9! 8se V. +a6tas, t*&16* )1nsel Nava&&,Rsete and anal, an#(ere$ that becau#e of the ba$)eace an$ or$er #ituation in a%ayan aey,pa&ti)1la&l/ int*e %a&&i f +a66a, and f t*e pendin6 appeal *e *ad taent t*e Se)&eta&/ f A6&i)1lt1&e and Nat1&al Res1&)es and t*eP&esident f t*e P*ilippines f&$ t*e &ef1sal %/ t*e Di&e)t& fAni$al Ind1st&/ t ded1)t f&$ t*e % val1e f t*e %1lls)&&espndin6 /ea&l/ dep&e)iatin f f&$ t*e date fa)71isitin, t *i)* dep&e)iatin t*e A1dit& Gene&al did nt%;e)t, *e )1ld nt &et1&n t*e ani$als n& pa/ t*ei& val1e andp&a/ed f& t*e dis$issal f t*e )$plaint.

Tsenten)ed >defendant? t pa/ t*e s1$ f P5,'9.#" t*ettal val1e f t*e t*&ee %1lls pl1s t*e %&eedin6 fees in t*ea$1nt f P'.!0 it* inte&est n %t* s1$s f >at? t*e le6al&ate f&$ t*e filin6 f t*is )$plaint and )sts.

On " O)t%e& !"9 t*e plaintiff $ved e3 pa&te f& a &it fe3e)1tin *i)* t*e )1&t 6&anted n ! O)t%e& and iss1edn !! Nve$%e& !"9.

/n 7 *anuary 1959 #he fie a &otion ae%in% that on 2C*une 1952 the t(o bu Sin$hi an$ !ha%nari (ere returne$to the !ureau Ani&a of n$u#try an$ that #o&eti&e inNove&ber 1958 the thir$ bu, the Sahini(a, $ie$ fro&%un#hot (oun$ inficte$ $urin% a u" rai$ on acien$aFeici$a$ nta, an$ )rayin% that the (rit of eecution beua#he$ an$ that a (rit of )rei&inary inIunction bei##ue$.

SS- 6hether or not a))eant i# iabe for o## in thi#ca#e.

-


11/18

defendant f t*e )nve/an)e, 6ivin6 *i$ si3t/ da/s t va)atet*e p&e$ises 1nde& ne f t*e )la1ses f t*e )nt&a)t f lease.

There after the )aintiff reuire$ the $efen$ant to return athe furniture tran#ferre$ to hi& for the& in the hou#e(here they (ere foun$.

On Nve$%e& 9, !"5, t*e defendant, t*&16* ant*e& pe&sn,&te t t*e plaintiff &eite&atin6 t*at s*e $a/ )all f& t*ef1&nit1&e in t*e 6&1nd fl& f t*e *1se. On t*e 0t* f t*esa$e $nt*, t*e defendant &te ant*e& lette& t t*e plaintiff

inf&$in6 *e& t*at *e )1ld nt 6ive 1p t*e t*&ee 6as *eate&sand t*e f1& ele)t&i) la$ps %e)a1se *e 1ld 1se t*e$ 1ntilt*e !9t* f t*e sa$e $nt* *en t*e lease in d1e t e3pi&e.

The )aintiff refu#e$ to %et the furniture in vie( of the factthat the $efen$ant ha$ $ecine$ to &a"e $eivery of a ofthe&.

On Nve$%e& !9t*, %ef&e va)atin6 t*e *1se, t*e defendantdepsited it* t*e S*e&iff all t*e f1&nit1&e %eln6in6 t t*eplaintiff and t*e/ a&e n n depsit in t*e a&e*1se in t*e)1std/ f t*e said s*e&iff.

SS- 6hether the $efen$ant co&)ie$ (ith hi#obi%ation to return the furniture u)on the )aintiff>#$e&an$:

-


12/18

A a *er trana)tion 4it* t*e PN' 4ereu8e)t to t*e a%%rova o %etitioner a)o%troer o t*e PN', an& earin t*at%etitioner i*t o) or un&uy inuen)et*e %ayent o *er vou)*er in t*e PN', *e)on)e&e&. Thus, she paid additionalamounts in cash and chec+s as interestsfor the loan# She as+ed petitioner forreceipt for the pa(ments $ut petitionertold her that it %as not necessar( asthere %as mutual trust and confidence$et%een them# Accordin' to hercomputation, the total amount she paidto petitioner for the loan and interestaccumulated to P1,2"","""#""#

T*ereater, re%on&ent )onute& a a4yerrear&in t*e %ro%riety o %ayin interet ont*e oan &e%ite aen)e o areeent tot*at ee)t.

:By *er a4yer t*at *e a&e over%ayentto %etitioner, *e ent a &ean& etter to%etitioner ain or t*e return o t*e e;)eaount o P0,000.00. Petitioner, &e%itere)ei%t o t*e &ean& etter, inore& *er)ai or reiureent.+

Petitioner insisted that there %as noo.erpa(ment $ecause respondentadmitted in the latter&s promissor( notethat her monetar( o$li'ation as of 12Septem$er 199! amounted toP1,2!","""#"" inclusi.e of interests. ren&ere& a ?e)iion *o&in t*atre%on&ent a&e an over%ayent o *eroan oiation to %etitioner an& t*at t*eatter *ou& reun& t*e e;)e aount tot*e orer. It ratio)inate& t*at re%on&ent=oiation 4a ony to %ay t*e oane&aount o P/@0,000.00, an& t*at t*e aee&interet &ue *ou& not e in)u&e& in t*e)o%utation o re%on&ent= tota onetary&et e)aue t*ere 4a no areeent

et4een t*e rear&in %ayent ointeret.

It )on)u&e& t*at in)e re%on&ent a&e ane;)e %ayent to %etitioner in t*e aounto P0,000.00 t*rou* itae, %etitioner*ou& return t*e ai& aount to re%on&ent%uruant to t*e principle of solutioinde$iti#1*

"A> %rouate& it ?e)iion airin intoto t*e RT" ?e)iion.

/SS0: hether or not there can $e aninterest in the instant case#

345: NO

hat is /nterest6

Interet i a )o%enation i;e& y t*e%artie or t*e ue or orearan)e o oney

T*i i reerre& to a monetar( interestInteret ay ao e i%oe& y a4 or y)ourt a %enaty or in&enity or &aae

T*i i )ae& compensator( interest.1+The ri'ht to interest arises onl( $(.irtue of a contract or $( .irtue ofdama'es for dela( or failure to pa( theprincipal loan on %hich interest isdemanded#19

Article 19) of the Ci.il Code, %hichrefers to monetar( interest,2"specificall( mandates that no interestshall $e due unless it has $eene-pressl( stipulated in %ritin'# As can$e 'leaned from the fore'oin'pro.ision, pa(ment of monetar(interest is allo%ed onl( if: 718 there %asan e-press stipulation for the pa(mentof interest and 728 the a'reement forthe pa(ment of interest %as reduced in%ritin'# The concurrence of the t%o

conditions is reuired for the pa(mentof monetar( interest# Thus, %e ha.eheld that collection of interest %ithoutan( stipulation therefor in %ritin' isprohi$ited $( la%#21

/t appears that petitioner andrespondent did not a'ree on thepa(ment of interest for the loanNeither %as there con.incin' proof of%ritten a'reement $et%een the t%ore'ardin' the pa(ment of interest


13/18

Respondent testified that althou'h sheaccepted petitioner&s offer of loanamountin' to P!","""#"", there %as,nonetheless, no .er$al or %rittena'reement for her to pa( interest onthe loan#22

Petitioner %reente& a *an&4ritten%roiory note &ate& 12 Se%teer199@23 4*erein re%on&ent %ur%orte&ya&itte& o4in %etitioner )a%ita an&interet. Respondent, ho%e.er,e-plained that it %as petitioner %homade a promissor( note and she %astold to cop( it in her o%n hand%ritin'. Iti evi&ent t*at re%on&ent &i& not reay)onent to t*e %ayent o interet or t*eoan an& t*at *e 4a erey tri)e& an&)oer)e& y %etitioner to %ay interet.


14/18

no &uty to ae u)* %ayent e)auet*ere 4a no e;%re ti%uation in 4ritin tot*at ee)t. T*ere 4a no in&in reationet4een %etitioner an& re%on&ent arear& t*e %ayent o interet. T*e%ayent 4a )eary a itae. Sin)e%etitioner re)eive& oet*in 4*en t*ere4a no ri*t to &ean& it, *e *a anoiation to return it.

;P 22 /SS0:

T*e t4o )*e), u8e)t atter o t*i )ae,totain P700,000.00 4*i)* re%on&ent)aie& a %ayent o t*e P/@0,000.004ort* o oan, 4ere not aon t*e ive)*e) oun& to e &i*onore& or oun)e& int*e ive )riina )ae. 6urt*er, t*e (eT"oun& t*at re%on&ent a&e anover%ayent o t*e oan y reaon o t*einteret 4*i)* t*e atter %ai& to %etitioner.39

/SS0 ON PROPR /NTRST

6inay, t*e RT" an& t*e "ourt o A%%eai%oe& a 12 rate o ea interet on t*eaount reun&ae to re%on&ent )o%ute&ro 3 (ar)* 199+ unti it u %ayent.

T*i i erroneou.

De *e& in Eatern S*i%%in !ine, In). v."ourt o A%%ea,@/ t*at 4*en an oiation,not )ontitutin a oan or orearan)e ooney i rea)*e&, an interet on t*eaount o &aae a4ar&e& ay ei%oe& at t*e rate o %er annu. Deurt*er &e)are& t*at 4*en t*e 8u&ent ot*e )ourt a4ar&in a u o oney e)oeina an& e;e)utory, t*e rate o ea interet,4*et*er it i a oanorearan)e o oney ornot, *a e 12 %er annu ro u)*inaity unti it atia)tion, t*i interi%erio& ein &eee& e5uivaent to aorearan)e o )re&it.

In t*e %reent )ae, %etitioner= oiationaroe ro a 5uai-)ontra)t o outio in&eitian& not ro a oan or orearan)e ooney. T*u, an interet o %er annu*ou& e i%oe& on t*e aount to ereun&e& a 4e a on t*e &aae a4ar&e&an& on t*e attorney= ee, to e )o%ute&ro t*e tie o t*e e;tra-8u&i)ia &ean&on 3 (ar)* 199+,@ u% to t*e inaity o t*i?e)iion. In a&&ition, t*e interet *a

e)oe 12 %er annu ro t*e inaity ot*i ?e)iion u% to it atia)tion.

FG.R. No. 13+77. 6eruary 12, 2002

T'!'(E' !IG$TAN an& !E'NI?AS ?E !A!!ANA, %etitioner, v.

1. T*e u o P11@,@1.00 4it* interett*ereon at t*e rate o 1/.1+9 %er annu2 ervi)e )*are an& / %er ont*%enaty )*are, )oen)in on 20 (ay19+2 unti uy %ai&C

"A> affirmed the ?ud'ment of the triacourt e-cept on the matter of the 2


15/18

ser.ice char'e %hich %as deletedpursuant to Central ;an+ Circular No#=*. Not uy atiie& 4it* t*e &e)iion ot*e a%%eate )ourt, ot* %artie ie& t*eirre%e)tive otion or re)oni&eration.F@Petitioner %raye& or t*e re&u)tion o t*e/ ti%uate& %enaty or einun)on)ionae. T*e an, on t*e ot*er*an&, ae& t*at t*e %ayent o interet an&%enaty e )oen)e& not ro t*e &ate oiin o )o%aint ut ro t*e tie o&eaut a o ti%uate& in t*e )ontra)t o t*e%artie.

'n 2+ ')toer 199+, t*e "ourt o A%%eareove& t*e t4o otion t*uy>

KDe in& erit in %ainti-a%%eee= )ait*at t*e %rin)i%a u o P11@,@1.00 4it*interet t*ereon ut )oen)e not on t*e&ate o iin o t*e )o%aint a 4e *ave%reviouy *e& in our &e)iion ut on t*e&ate 4*en t*e oiation e)ae &ue.

T*e &e)iion ou*t to e re)oni&ere& i*erey ('?I6IE?. T*e &een&ant-a%%eant Tooeo !iutan an& !eoni&a&ea !ana are *erey or&ere& to %ay t*e%ainti-a%%eee Se)urity Ban an& Trut"o%any t*e oo4in>

@1# The sum of P11!,!1)#"" %ithinterest thereon at the rate of 1#1=9a( 2", 19=2 untilfull( paid

/SS0: hether or not the the 1#1=9

case digest cred trans

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