UNIVERSITY OF THE CORDILLERAS

College of Law
Outline in Special Commercial Laws1
Atty. LEONARDO NICK D. GUMABUN*

BANKING AND ALLIED LAWS

I. NATURE AND CONCEPT OF BANKING LAWS

A. Governing Law - RA 337, as amended by RA 8791 or “The General Banking Act of

2000” (“GBL”); RA 76S3 or the “New Central Bank Act”, as amended by RA 11211
(“NCBA”)

B. Nature of Business
1. Bank - Sec. 3.1, GBL
2. Quasi-Bank - Sec. 95, NCBA in relation to Sec. 4.6, GBL
3. One-Unit Rule - Sec. 20, GBL; PDIC vs. Citibank, 669 SCRA 191 (2012)

C. Declaration of Policy - Sec. 2 GBL

D. Requirements to Operate — Secs. 8, 14, 9, GBL

1. Treasury Shares - Sec. 10, GBL
2. Degree of Care of Bank in view of Fiduciary Nature of Banking — Alano vs. Planter’s
Development Bank, GR. 171628; China Banking vs. Lagon, GR. No. 160843; Spouses
Jalbay vs. PNB, GR. 177803; Citibank vs. Cabamongan, GR. No. 177803; BPI Family
Savings Bank, Inc. vs. First Metro Investment Corporation, GR. No. 132390; Go vs.
Metropolitan Bank and Trust and Co., GR. No. 168842; PCIB vs. CA, GR. No. 121413;
Firestone Tire & Rubber Company of the Phil. vs. CA, GR. No. 113236; BPI vs. Tarcilla, GR.
No. 173134; Prudential Bank vs. CA, 223 SCRA 350 (1993); Prudential Bank vs. Lim 474
SCRA 485 (2005); Metropolitan Bank vs. Custodio 645 SCRA 697 (2011); PCI Bank vs.
Court of Appeals, 255 SCRA 299 (1996); Solidbank vs. Court of Appeals, 410 SCRA 562
(2003); BPI vs. Casa Montessori Internationale 430 SCRA 261 (2004)
3. Strikes and Lockouts - Sec. 22, GBL

II. CLASSIFICATION OF BANKS

A. Types of Bank - Sec. 23, GBL; RA 7906 “Thrift Banks Act”; RA 7353 “Rural Banks Act”;
RA 6938 “Cooperative Bank Act”; kA 6648
B. Distinctions

III. DEPOSIT FUNCTION

A. Nature - Art. 1980, CC
B. Relationship Between the Bank and Depositor - Gullas vs. PNB, GR. No. L-43191;
Maclaring Lucman vs. Alimatar Malawi, GR. No. 159794; Serrano vs. Central Bank, GR. No.
L- 30511; Guingona vs. The City of Manila, GR. No. L-60033; Consolidated Bank and Trust
Corp. vs. CA, GR. No. 138569

C. Relationship of Bank and Safety Deposit Box Client - CA Agro Industrial

Development Corp. vs. CA, GR No. 90027
D. Rules on Minors - Sec. 1, PD 734

1 As of May 1, 2020
2 Assistant Vice-President/ Regional Legal Officer, Development Bank of the Philippines

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E. Kinds of Deposit
F. Anonymous Account - Sec 9(a), RA 9160
G. Survivorship Agreement - Vitug vs. CA, GR. No. 82027

1 As of May 1, 2020
2 Assistant Vice-President/ Regional Legal Officer, Development Bank of the Philippines

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IV. SECRECY OF BANK DEPOSIT - RA 1405 “Secrecy of Bank Deposits Act”
A. Purpose
B. Nature/Coverage — Sec. 2, RA 140S
1. Deposits
2. Investments in Government Bonds

C. Acts Punishable - Sec. 3, RA 1405

D. Penalty for Violation — Sec. 5, 1405

V. EXCEPTIONS TO BANK SECRECY

A. Sec. 2 RA 1405 - China Banking Corporation vs. Ortega, GR No. L-34964, in relation:
See Sec. 30, NCBA; BSB Group, Inc. vs. Go, GR. No. 168644; Ejercito vs. Sandiganbayan,
GR. No. 157294-95; Union Bank of the Phils. CA, GR. No. 134699;
B. Required by Law — Sec 26, NCBA;
C. Sec. 8, RA 3019 “Anti-Graft and Corrupt Practices Act”;
D. Determination of Net Estate/Compromise of Tax Liability — Sec. 6(F), RA 8424
“Tax Reform Act of 1997”;
E. Sec 8(8), RA 3591, as amended “PDIC Act”;
F. Act 3936 or the “Unclaimed Balances Act” see also PD 679 - Republic vs.
Court of Appeals, 345 SCRA 63 (2000); RCBC vs. Hi-Tri-Development Corp. 672 SCRA
514 (2012);
G. Sec. 3(i) in relation to Section 11 of RA 9160 “Yhe Anti-Money Laundering Act”,
as amended (Sec. 8, RA 9194) - Republic vs. Eugenio, GR. No. 174629; However, See
Amendment under Sec. 11, RA 10167;
H. Sec. 27, RA 9372 or the “Human Security Act of 2007”;
1. Sec. 15(8), RA 6770 ‘The Ombudsman Act of 1989”, as amended - Marquez vs.
Disierto, GR. No. 135882;
J. Sec 17(a), RA 10141 “Financial and Rehabilitation and Insolvency Act”;
K. Sec. 10, RA 10168 “The Terrorism Financing Prevention and Suppression Act of 20212”

VI. FOREIGN CURRENCY DEPOSIT — Section 8, RA 6426 or the “Foreign Currency

Deposit Act”;
A. Exceptions:
1. Sec. 11 of RA 9160 - Intengan vs. CA, GR. No. 128996; Philippine Savings Bank vs.
Senate Impeachment Court, GR No. 200238
2. Savacion vs. Central Bank of the Phils., GR. No. 94723; China Banking Corp. vs. CA,
GR.
No. 140687;
3. Sec. 10, RA 10167;
4. Sec. 27, RA 9372

VII. PDIC - DEPOSIT INSURANCE

A. Governing Laws — Act 3S91, as amended by RA 10846
B. Insurance Requirement
1. Rule on Deposit in a Domestic Bank Operating Within the Philippines
2. Rule on Deposit in a Domestic Bank Operating Abroad
3. Rule on Deposit in a Foreign Bank with a Branch Operating Within the Philippines

C. Nature of Insurance Policy — Sec. 10(a), RA 3591

D. Meaning of Insured Deposit — Sec. 4(g), RA 3591, as amended by RA 9576
1. Rules on Joint-Account — Sec. 4(g) of RA 3591, as amended by RA 9576

E. Exclusions from Insurance Coverage — Sec. 4(f), RA 3591 as amended by RA 9576

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F. Payment of Insured Deposit — Sec. 10(c), RA 359

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VIII. LOAN FUNCTION
A. Authority to Lend Money - Sec. 1, BSP Circular No. 622, Series of 2008
B. Conditions for the Granting of Loans/ Safe and Sound Banking Practice - Sec. 39,
GBL
C. Ascertainment of Borrower’s Capacity — Sec. 40, GBL; Security Bank vs. Cuenca, 341
SCRA 781 (2000)
D. Secured vs. Unsecured Loans and Other Credit Accommodation
E. Bridge Financing - De Vera vs. Court of Appeals, 367 SCRA 781
F. Fixed vs. £-Ioating Interest Rate and Escalation Clauses - Security Bank vs. RTC of
Makati 263 SCRA 483 (1196); Consolidated Bank vs. Court of Appeals 356 SCRA 671 (2001);
Almeda vs. Court of Appeals 256 SCRA 292 (1996); PNB vs. Court of Appeals 259 SCRA
174 (1996)
G. Risk Based Capital - Sec 34, GBL
H. Single Borrower’s Limit — Secs. 35.1 in relation to Sec. X303 Manual of Regulations
for Banks (“MORB)
1. Exception - 35.2, GBL

I. Inclusions to SBL — Sec. X303(c) MORB

J. Exclusions from SBL- Sec. X303(e) MORB
K. DOSRI Accounts - Sec. 36, GBL
i. Requisites — BSP Circular 170, in relation to Art. 26, NCBA

L. Loan Threshold
1. Real Estate — Sec. 37, GBL
2. ChaNel — Sec. 38, GBL

M. Foreclosure and Redemption of Collaterals

1. Judicial vs. Extrajudicial Foreclosure - Rule 68 of the Rules of Court vs. Act 3135, as
amended “An Act to Regulate the Sale of Property under Special Powers Inserted in or
Annexed to the Real Estate Mortgages”; Huerta Alba Resort, Inc. vs. Court of Appeals,
GR No. 128S67

2. Redemption (Mortgagee is a Bank or Quasi-Bank)

a. Natural Person — Sec. 6, Act 3135 in relation to Sec. 47 GBL; See BSP Circular No.
337 Series of 2002;
b. Juridical Person - Sec. 47, GBL; Goldenway Merchandising Corporation vs. Equitalbe
PCI Bank, GR No. 195540
c. Amount - Sec 47, GBL

3. Prohibited Acts of Borrowers — Sec. 55.2, GBL

IX. OWNERSHIP OF BANKS

A. Foreign Equity in a Domestic Bank- Sec 11, GBL
B. Foreign Banks Operation in the Philippines
1. Modes of Entry — Sec. 2, RA 7721 “Foreign Banks Liberalization Act”, as amended
by RA
10641;
2. Limitation — Section 2, RA 10641
3. Criteria/ Guidelines for Entry — Sec. 2, RA 10641
4. Right of a Foreign Bank to Bid in a Foreclosure Sale - Sec. 6, RA 10641

C. Offshore Banking — Sec. 1(1) PD 1034 “Offshore Banking System Decree”

X. BANK DIRECTORS AND OFFICERS

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A. Composition - Secs. 1S, 17, & 19, GBL
1. Rural Bank — Sec. 5, RA 7353

B. Fit and Proper Rule - Sec. 16, GBL; Busuego vs. Court of Appeals

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C. Remedies of the BSP for a Bank in Distress
1. Emergency Loan — Sec. 84, NCBA
2. Conservatorship - Sec. 29, NCBA
3. Receivership - Sec. 30, NCBA as amended by RA 11211 in relation to Sec 56, RA
8791
a. Effects — Fidelity Savings and Mortgage Bank vs. Cenzon, GR. No. L-46208; Larrobis
vs. PVB, GR. No. 135706

4. Liquidation - Sec. 30, NCBA

D. Effect of Actions of the BSP in Conservatorship and Receivership - Sec. 30, NCBA -
BSP Monetary Board vs. Antonio-Valenzuela, GR. No. 184778

XI. THE BANGKO SENTRAL NG PILIPINAS

A. Creation - Sec. 2, NCBA
B. Responsibility and Objective - Sec. 3, NCBA
C. Composition of the Monetary Board - Sec. 6, NCBA
D. Vacancies — Sec.7, NCBA
E. Qualifications — Sec. 8, NCBA
F. Disqualifications - Sec. 9, NCBA
G. Removal - Sec. 10, NCBA
H. Examination - Section 28, NCBA
1. Supervisory Powers - Sec. 4, GBL; Sec. 25, NCBA
J. Injunction - Sec. 25, GBL as amended by RA 11211
K. Money Function of the BSP - Sec. 50 & 52 NCBA
L. Concept of Legal Tender - BSP Circular No. 537 Series of 2006

TRUTH IN LENDING

I. Duty to Disclose - Sec. 4, RA 3765 “Truth in Lending Act”

II. Effect of Non-Compliance - Silors vs. PNB, 728 SCRA 617 (2014); New Sampaguita
Builders Construction, Inc. vs. PNB, GR. No. 148753; DBP vs. Arcilla, GR. No.
161426; Consolidated Bank vs. Court of Appeals, 246 SCRA 193 (1995); UCPB vs. Beluso
530 SCRA 567 (2007)

ANTI-MONEY LAUNDERING
I. Governing Laws - RA 9160 or the “Anti-Money Laundering Act of 2001”, as amended
by RA 9194 (“AMLA”); RA 10167 amending Sections 10 and 11of RA 9160; RA 10365

II. Declaration of State Policy - Sec. 2, AMLA

III. Money Laundering - Sec. 4, RA 10365
A. Persons Liable
B. Elements

IV. Unlawful Activities/Predicate Crimes - Sec. 3(i), AMLA, as amended (Sec. 2, RA

10365)
V. Covered Person — Sec. 3(a), AMLA, as amended (Sec. 4, RA 10365)
VI. Anti-Money Laundering Council “AMLC” - Sec.7, RA 9160

VII. Prevention of Money Laundering

A. Customer Identification - Sec. 9(a), RA 9160
B. Record Keeping — Sec. 9(b), RA 9160
C. Reporting of covered and Suspicious Transaction — Sec. 9(c), RA 9160
VIII. Covered Transaction - Section 3(b), as amended (Sec. 1, RA 9194); RA Rule 3(G),
AMLA
IRR
IX. Suspicious Transaction - Section 3(b-1), as amended (Sec. 2, RA 9194); Rule 3(H),
AMLA
IRR
X. Safe Harbor - Sec. 9, 2n d Par., RA 9160
XI. Authority to Inquire into Bank Deposits — Sec. 11, RA 9160
XII. Bank Inquiry Without Court Order - Sec. 3(i) in relation to Section 11of RA
9160, as amended (Section 8, RA 9194); Rule IX(B), AMLA Revised IRR
XIII. Jurisdiction Over Money Laundering - Sec 5, RA 9160 as amended

XIV. Freeze Order - Sec. 10, RA 9160 as amended (Section 7, RA 9194)

A. Elements
1. Ex-Porte Petition - Sec.7(3) in relation to Sec. 10, RA 9160 as Amended
2. Probable Cause - Ligot vs. Republic, GR. No. 176944; Subido Pagente Certeza
Mendoza & Binay Law Offices vs. CA, GR No. 216914
a. Duration - Sec. 10, RA 9160 as amended (Section 7, RA 9194)
b. Injunction - Section 10
c. Remedy - Sec. 57, Rules of Civil Forfeiture

B. Civil Forfeiture - Sec. 12, RA 9160

C. Prosecution of Money Laundering - Sec. 6, RA 9160; Republic vs. Glasgow Credit
and Collection Services, Inc., GR. 170281

FINANCIAL REHABILITATION AND INSOLVENCY ACT /“FR/A”J

I. Concept and Governing Law - RA 10142

A. State Policy - Sec. 2, FRIA
B. Nature of Proceedings - Sec. 3, FRIA; Advent Capital and Finance Corp. vs.
Alcantara, 664 SCRA 224 (2012); Express Investments III vs. Bayan Telecommunications
687 SCRA 50 (2013)
C. Applicability to Pending Proceedings - Sec. 116, FRIA; Situs Development Corp. vs.
Asiatrust Bank, GR. No. 180036
D. Construction of FRIA Rules - Asiatrust Development Bank vs. First Aikka
Development, Inc., GR. No. 179558
E. Venue of Proceedings - Sec. 6, Rule 1, A.M. 12-12-11-SC
F. Purposes - PBCom vs. Basic Polyprinters and Packaging Corporation, GR. No.
187581

G. Concept of Insolveny — Sec. 4 (p), FRIA; Metrobank vs. S.F. Naguiat Enterprises, Inc.,
GR.
No. 178407
i. Actual vs. Technical - PNB vs. Court of Appeals, GR. No. 165571

H. Debtor - Secs. 4(k) & 5, FRIA

I. Creditor - Secs. 4(h) 42

II. Rehabilitation
A. Definition & Concept - Sec. 4(gg), FRIA; BPI Family Savings Bank, Inc. vs. St.
Michael Medical Center, Inc., GR. No. 205469; Wonder Book Corp. vs. PBCom, GR. No.
187316; Viva Shipping Lines, Inc. vs. Keppel Philippines Marine, Inc., GR. No.
177382
B. Concept of Material Financial Commitment - PBCom vs. Basic Polyprinters and
Packaging Corporation, GR. No. 187581

C. Types of Rehabilitation Proceedings

1. Court Supervised
a. Voluntary Proceedings - Sec. 4(rr), FRIA
i. The Petitioner - Sec. 12, FRIA
ii. Grounds - Sec. 1, Rule 2, AM 12-12-11-SC; Tantano vs. Espina-Caboverde, GR.
No. 203585; Ao-as vs. Court of Appeals, GR No. 128464

b. Involuntary Proceedings — Sec. 4(r), FRIA

i. The Petitioner - Sec. 13, FRIA; Sec. 4, Rule 2, A.M. 12-12-11-SC
ii. Grounds - Sec. 13, FRIA; Sec S, Rule 2, A.M. 12-12-11-SC

2. Pre-Negotiated Rehabilitation — Sec. 76, FRIA

3. Out-of-Court or Informal Restructuring Agreement or Rehabilitation — Sec. 84,
FRIA Standstill Period — Sec. 85, FRIA; Sec. 2, Rule 4, A.M. 12-12-11-SC

D. Commencement Order — Sec. 16, FRIA

1. Action on the Petition — Sec. 15, FRIA; Sec. 7, Rule 2, A.M. 12-12-11-SC
2. Effects of Commencement Order — Sec. 17, FRIA; Sec. 9, Rule 2, A.M. 12-12-11-SC;
See, however, Sec. 60, FRIA
3. Effectivity and Duration — Sec. 21, FRIA; Sec. 11, Rule 2, A.M. 12-12-11-SC

4. Stay or Suspension Order — Sec. 16(9), FRIA; Sec. 5(r), Rule 1, A.M. 12-12-11-SC
a. Concept of “Claims” — Sec. 4(c), FRIA; Molina vs. Pacific Plans, Inc. GR No.
165476; Lingkod Manggagawa sa Rubberworld vs. Rubberworld (Phils.), Inc., GR. No 153882;
Garcia vs.
PAL, GR No. 164856; Sobrejuanite vs. ASB Development Corp., GR. 165675
b. Exceptions — Sec. 18, FRIA; Sec. 10, Rule 2, A.M. 12-12-11-SC; MWSS vs. Daway,
GR. No. 160732; JAPRL Development Corp. vs. Security Bank, GR No. 190107; Panlilio vs.
RTC, GR No. 173846

E. Displacement of Existing Management — Sec. 36, FRIA; Sec. 31, Rule 2, A.M. 12-12-11-
SC; Umale vs. ASB Realty Corp., GR. No. 181126
F. Claw-Back Principle — Sec. 52, FRIA

G. Rehabilitation Receiver — Sec. 4(h), RRIA

1. Who may serve — Sec. 28, FRIA; Sec. 5(p), Rule 1, A.M. 12-12-11-SC; Sec. 20, Rule 2,
A.M. 12-12-11-SC
2. Qualifications - Sec. 29, FRIA; Sec. 21, Rule 2, A.M. 12-12-11-SC
3. Powers, Duties, and Functions — Sec. 31, FRIA
4. Role of Management Committee — Sec. 37, FRIA
5. Immunity from Suit — Sec. 41, Sec. 38, Rule 2, A.M. 12-12-11-SC
6. Discharge — Sec. 73, FRIA; Sec. 71, Rule 2, A.M. 12-12-11-SC

H. Rehabilitation Plan
1. Definition & Contents — Secs. 4(ii) & 62, FRIA; BPI vs. Sarabia Manor Hotel
Corporation, GR No. 175844; Philippine Asset Growth Two, Inc. vs. Fastech Synergy Phils.,
GR. No. 206528
2. Approval or Rejection by the Creditor — Sec. 64, FRIA; See, however, Sec. 42, FRIA;
Sec. 62, Rule 2, A.M. 12-12-11-SC
3. Non-Impairment of Contracts — PNB vs. Court of Appeals p GR. No. 165571
4. Submission to the Court — Sec. 65, FRIA; Sec. 63, Rule 2, A.M. 12-12-11-SC
5. Confirmation of Plan Notwithstanding Rejection by the Creditors “Cram Down Clause”
— 2’ d Par, Sec. 64, FRIA; Sec. 62, Rule 2, A.M. 12-12-11-SC; Victorio-Aquino vs. Pacific
Plans, Inc. GR No. 193108;
6. Objections — Sec. 66, FRIA; Sec. 64, Rule 2, A.M. 12-12-11-SC; BPI vs. Sarabia Manor
Hotel Corp., GR No. 175844
7. Confirmation of Rehabilitation Plan — Sec. 68, FRIA; Sec. 66, Rule 2, A.M. 12-12-11-
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 SC
8. Effects of Confirmation — Sec. 69, FRIA; Sec. 67, Rule 2, A.M. 12-12-11-SC;
Veterans Philippine Scout Security Agency vs. First Dominion Prime Holdings, 679 SCRA
168 (2012)

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9. Period of Confirmation — Sec. 72, FRIA
10. Termination — Sec. 74, FRIA
a. Effects — Sec. 75, FRIA
11. Failure of Rehabilitation - Sec. 74, FRIA

Ill. Liquidation: Definition & Concept - Majority Stockholders of Ruby Industrial

Corp. vs. Lim, GR. No. 165887; Viva Shipping Lines, Inc. vs. Keppel Philippines Marines,
Inc. GR. No.
177382

A. Kinds of Insolvent Debtors

1. Juridical
a. Voluntary Liquidation - Sec. 90, FRIA
b. Involuntary Liquidation— Sec. 91, FRIA
c. Conversion of Rehabilitation to Voluntary/involuntary Liquidation — Secs. 90 & 91,
fiRlA

2. Individual - Sec. 4(o), FRIA

a. Suspension of Payments - Secs. 94 & 96, FRIA
b. Voluntary Liquidation - Sec. 103, FRIA
i. Act of Insolvency - Sec. 105, FRIA

c. Involuntary Liquidation — Sec. 105, FRIA

B. Liquidation Order and its Effects - Secs. 107, 112, and 113, FRIA

C. Rights/Duties of Secured Creditor - Sec. 114, FRIA; Sec. 5, Rule 4, AM 15-04-06-

SC
1. Waiver of Security - Sec. 6, Rule 4, AM 15-04-06-SC
2. Maintaining Security -2 n^ Par., Sec. 114, FRIAj Sec.7, Rule 4, AM 15-04-06-SC

D. Liquidator - Secs. 18 - 126, FRIA

E. Liquidation Plan - Sec. 129, FRIA; Sec. 26, Rule 4, AM 15-04-06-SC
F. Sale of Assets in Liquidation - Sec. 131, fiRIA
G. Termination of Proceedings — Sec. 135, FRIA; Sec. 29, Rule 4, AM 15-04-06-SC

LETTERS QF CREDIT (“LC”)

I. Definition and Nature of LC - Art. 567, Code of Commerce (“CoC”); Bank of
America, NT & SA vs. CA, GR No. 105395
II. Essential conditions — Art. 568, CoC
III. Parties - Bank of America
IV. Doctrine of Independence - Tansfield Philippines, Inc. vs. Luzon Hydro Corp., GR
No. 146717
V. Fraud Exception Principle
VI. Doctrine of Strict compliance
VII. Irrevocable LC — Feati Bank & Trust Co. vs. cx, GR No. g42o9
VIII. Commercial vs. Standby LC
IX. LC vs. Guaranty - MWSS vs. Daway, GR No. 160732
X. Prescriptive Period - National Commercial Bank of Saudi Arabia vs. CA, GR No.
124267

1. State Policy - Sec. 2, PD 115 “Trust Receipts Law”

II. Definition - Sec 4, PD 115; Bank of Commerce vs. Serrano, GR No. 15189S
III. Object and Nature - Ng vs. People, GR No. 173905; Rosario Textiles Mills Corp. vs.
Home Bakers Savings and Trust Company, GR No. 137232; Landl & Company (Phil.)
Inc. vs. Metropolitan Bank & Trust Co., GR No. 159622; Nacu vs. CA, GR. No. 108638
IV. Forms and Contents — Secs. 3(j) & 5, TR
V. Parties - Secs. 3(b) & 3(c), TR
VI. Obligations and Liabilities of the Entrustee - Sec. 9, TR
VII. Rights of the Entruster — Par. 1, Sec 7, TR
vlll.Cancellation of Trust Receipt — Par. 2, Sec 7, TR
IX. Entrusted Not Liable as Vendor - Sec. 8, TR
X. Validity of Entrusted’s Security - Sec. 12, TR
XI. Risk of Loss - Sec 10, TR
XII. Right of Purchaser for Value in Good Faith - Prudential Bank vs. NLRC, GR No.
112592
XII. Repossession by Entrusted of Goods - Landl & Company (Phil.) Inc. vs. Metropolitan
Bank & Trust Co., GR No. 159622
XIII. Penalties - Sec 13, TR; Gonzalez vs. HSBC, GR NO. 164904; Sarmiento vs. CA,
GR No. 122502; Sia vs. People, GR No. L-30896

SECURITIES REGULATIONS CODE /“SRC"J - RA 8799

1. State Policy - Sec. 2, SRC

II. Jurisdiction Transferred to the RTC— Sec. 5.2, SRC; Sec. 5, PD 902-A
III. SEC Jurisdiction - Roman, Jr. vs. SEC, GR No. 196329; Orendain vs. BF Homes,
Inc., GR No. 146313; Sec. 5.1SRC
IV. Intra-corporate Dispute - Go vs. Distinction Properties Development and Construction,
Inc., GR No. 194024; Aguirre II vs. FQB+7, Inc., GR No. 170770; Chateau de Baie
Condominium Corp. vs. Spouses Moreno, GR No. 186271; Intestate Estate of Alexander T.
Ty vs. CA, GR No. 112872
V. SEC vs. RTC Jurisdiction on Proxy Validation - GSIS vs. CA, GR No. 183905; SEC vs.
CA, GR Nos. 187702 & 189014
VI. SEC’s Power to Issue Cease and Desist Order “CDO” - Primanila Plans, Inc. vs. SEC,
GR No. 193791; GSIS vs. CA, GR Nos. 183905 & 184275

IV. Securities - Sec. 3.1, SRC

A. Definition of Terms - 3.2 — 3.4, 3.8 - 3.10
B. Registration of Securities - 8.1- 8.3, SRC
C. Exempt Securities - 9.1SRC
D. Exempt Transactions - 10.1 & 10.2, SRC

V. Investment Contract — SEC vs. Prosperity.Com, GR No. 164197; Power Homes

Unlimited Corporation vs. Securities and Exchange Commission and Noel Manero, G.R.
No. 164182
A. Howey Test

V. Grounds for Revocation and/or Registration of Registration - Sec. 13.1, SRC

VI. Manipulation of Security Prices — Sec. 24.1 —24.3, SRC
VII. Fraudulent Transactions - Sec. 26, SRC
VIII. Insider Trading — Sec. 8.3 in relation to Sec. 27.1 - 27.3, SRC; SEC vs. Interport
Resources Corp., GR No. 135808
IX. Tender Offer — Cemco Holdings, Inc. vs. National Life Insurance Insurance Company of
the Phils., GR No. 171815; Osmena Ill vs. OSS, GR No. 165272
A. When Mandatory — Rule 19, SRC Rules
B. Exemptions - Sec. 19.3, SRC Rules

X. Proxy Solicitation - Sec. 20, SRC

XI. Civil Liabilities — Secs. 56— 61, SRC