Professional Documents
Culture Documents
New Sampaguita VS Phils., 435 SCRA 565
New Sampaguita VS Phils., 435 SCRA 565
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
_______________
* THIRD DIVISION.
566
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
would completely take away from the borrower the „right to assent to
an important modification in their agreement‰ and would also
negate the element of mutuality in their contracts.·Although
escalation clauses are valid in maintaining fiscal stability and
retaining the value of money on long-term contracts, giving
respondent an unbridled right to adjust the interest independently
and upwardly would completely take away from petitioners the
„right to assent to an important modification in their agreement‰
and would also negate the element of mutuality in their contracts.
The clause cited earlier made the fulfillment of the contracts
„dependent exclusively upon the uncontrolled will‰ of respondent
and was therefore void. Besides, the pro forma promissory notes
have the character of a contract dÊadhésion, „where the parties do
not bargain on equal footing, the weaker partyÊs [the debtorÊs]
participation being reduced to the alternative Âto take it or leave it.Ê
‰
Same; Same; Same; Same; Same; Usury Law; While the Usury
Law ceiling on interest rates was lifted by Central Bank Circular
No. 905, nothing in the said Circular grants lenders carte blanche
authority to raise interest rates to levels which will either enslave
their borrowers or lead to a hemorrhaging of their assets.·„While
the Usury Law ceiling on interest rates was lifted by [Central Bank]
Circular No. 905, nothing in the said Circular grants lenders carte
blanche authority to raise interest rates to levels which will either
enslave their borrowers or lead to a hemorrhaging of their assets.‰
In fact, we have declared nearly ten years ago that neither this
Circular nor PD 1684, which further amended the Usury Law,
„authorized either party to unilaterally raise the interest rate
without the otherÊs consent.‰
Same; Same; Same; Same; Same; Same; Rates found to be
iniquitous or unconscionable are void, as if there were no express
contract thereon.·A similar case eight years ago pointed out to the
same respondent (PNB) that borrowing signified a capital
transfusion from lending institutions to
567
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
568
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569
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
570
Same; Same; Same; Same; Notarial Law; Legal Ethics; Act 496
has repealed the Spanish Notarial Law; A partyÊs engagement of his
counsel in another capacity concurrent with the practice of law is not
prohibited, so long as the roles being assumed by such counsel is
made clear to the client.·The disqualification argument in the
Affidavit of Publication raised by petitioners no longer holds water,
inasmuch as Act 496 has repealed the Spanish Notarial Law.In the
same vein, their engagement of their counsel in another capacity
concurrent with the practice of law is not prohibited, so long as the
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
roles being assumed by such counsel is made clear to the client. The
only reason for this clarification requirement is that certain ethical
considerations operative in one profession may not be so in the
other.
Same; Same; Evidence; Entries in Ledgers; Presumptions;
Without a doubt, the subsidiary ledgers in a manual accounting
system are mere private documents that support and are controlled
by the general ledger; We go by the presumption that the recording of
private transactions has been fair and regular, and that the ordinary
course of business has been followed.·Contrary to petitionersÊ
assertions, the subsidiary ledgers of respondent properly reflected
all entries pertaining to Petitioner NSBCIÊs loan accounts. In
accordance with the Generally Accepted Accounting Principles
(GAAP) for the Banking Industry, all interests accrued or earned on
such loans, except those that were restructured and non-accruing,
have been periodically taken into income. Without a doubt, the
subsidiary ledgers in a manual accounting system are mere private
documents that support and are controlled by the general ledger.
Such ledgers are neither foolproof nor standard in format, but are
periodically subject to audit. Besides, we go by the presumption
that the recording of private transactions has been fair and regular,
and that the ordinary course of business has been followed.
Same; Same; Same; Words and Phrases; „General Ledgers,‰ and
„Subsidiary Ledgers,‰ Explained.·A „general ledger,‰ on the one
hand, is a summary or repository of accounts to which debits and
credits resulting from financial transactions are posted from
journals or books of original entry; a „subsidiary ledger,‰ on the
other, is a special type of ledger confined chiefly to a particular
account.
Mortgages; Foreclosure of Mortgage; No personal notice is
required in an extrajudicial foreclosure since such action is in rem,
requiring only notice by publication and posting, in order to bind
parties interested in the foreclosed property.·In the accessory
contract of real mortgage, in which immovable property or real
rights thereto are used as security for the fulfillment of the
principal loan obligation,the bid price may be lower than the
propertyÊs fair market value. In fact, the loan value itself is only 70
percent of the appraised value. As correctly emphasized by the
appellate court, a low bid price will make it easier for the owner to
effect redemption
571
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
PANGANIBAN, J.:
The Case
1
Before us is a Petition for Review under Rule 45 of the
Rules of2 Court, seeking to nullify
3
the June 20, 2001
Decision of the Court of Appeals (CA) in CA-G.R. CV No.
55231. The decretal portion of the assailed Decision reads
as follows:
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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572
The Facts
„On February 11, 1989, Board Resolution No. 05, Series of 1989 was
approved by [Petitioner] NSBCI [1)] authorizing the company to x x
x apply for or secure a commercial loan with the PNB in an
aggregate amount of P8.0M, under such terms agreed by the Bank
and the NSBCI, using or mortgaging the real estate properties
registered in the name of its President and Chairman of the Board
[Petitioner] Eduardo R. Dee as collateral; [and] 2) authorizing
[petitioner-spouses] to secure the loan and to sign any [and all]
documents which may be required by [Respondent] PNB[,] and that
[petitioner-spouses] shall act as sureties or co-obligors who shall be
jointly and severally liable with [Petitioner] NSBCI for the payment
of any [and all] obligations.
„On August 15, 1989, Resolution No. 77 was approved by
granting the request of [Respondent] PNB thru its Board NSBCI for
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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4 Petitioners herein.
5 Respondent herein.
6 CA Decision, pp. 24-25; Rollo, pp. 182-183.
7 „Working capital‰ refers to current assets minus current liabilities.
573
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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574
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
December 28, 1994 (per records, p. 146) and admitted by the RTC in its
December 28, 1994 Order (per records, p. 151).
575
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
576
ÂIn view of the foregoing, the Court believes and so holds that the
[respondent] has no cause of action against the [petitioners].Ê
9
WHEREFORE, the case is hereby DISMISSED, without costs.Ê ‰
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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577
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
578
Issues
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
„I
„II
„III
„IV
„V
_______________
10 The Petition was deemed submitted for decision on August 19, 2002,
upon receipt by the Court of petitionersÊ Memorandum signed by Atty.
Cesar M. Cariño. RespondentÊs Memorandum, signed by Attys. Flerida P.
Zaballa-Banzuela and Dinah B. Tabada, was filed on June 28, 2002.
579
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
„VI
At the
12
outset, it must be stressed that only questions of
law may be raised in a petition for review on certiorari
under Rule 45 of the Rules of Court. As a rule, questions of
fact cannot be the
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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580
13
subject of this mode 14of appeal, for „[t]he Supreme Court is
not a trier of facts.‰ As exceptions to this rule, however, 15
factual findings of the CA may be reviewed on appeal
when, inter16
alia, the factual inferences are manifestly
mistaken;
17
the judgment is based on a misapprehension of
facts; or the CA manifestly overlooked certain relevant
and undisputed facts that, if properly 18
considered, would
justify a different legal conclusion. In the present case,
these exceptions exist in various instances, thus prompting
us to take cognizance of factual issues and to decide upon
them in the interest19
of justice and in the exercise of our
sound discretion.
Indeed, Petitioner NSBCIÊs loan accounts with
respondent appear to be bloated with some iniquitous
imposition of interests, penalties, other charges and
attorneyÊs fees. To demonstrate this point, the Court shall
take up one by one the promissory notes, the credit
agreements and the disclosure statements.
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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13 Perez v. Court of Appeals, 374 Phil. 388, 409-410; 316 SCRA 43,
October 1, 1999.
14 Far East Bank & Trust Co. v. Court of Appeals, 326 Phil. 15, 18; 256
SCRA 15, 18, April 1, 1996, per Hermosisima Jr., J.
15 Alsua-Betts v. Court of Appeals, 92 SCRA 332, 366, July 30, 1979.
16 Luna v. Linatoc, 74 Phil. 15, October 28, 1942.
17 De La Cruz v. Sosing, 94 Phil. 26, 28, November 27, 1953.
18 Larena v. Mapili, 408 SCRA 484, 489, August 7, 2003, per
Panganiban, J.; and The Heirs of Felicidad Canque v. Court of Appeals,
341 Phil. 738, 750; 27 SCRA 741, July 21, 1997.
19 Feria and Noche, Civil Procedure Annotated, Vol. 2 (2001), p. 203.
20 Exhibits „C‰, „C-1‰, and „C-2‰; Exhibits „13‰, „13-B‰, and „13-C‰;
folder of exhibits, Vol. I, pp. 5-7.
21 De Leon, Comments and Cases on Credit Transactions (1995), p. 32.
581
No interest
22
shall be due, unless expressly stipulated in
writing. It would be the zenith of farcicality to specify and
agree upon rates that could be subsequently upgraded at
whim by only one party to the agreement. 23
The „unilateral determination and imposition‰ of
increased rates is „violative of the principle
24
of mutuality of
25
contracts ordained in Article 1308 of the Civil Code.‰
One-sided impositions do not have the force of law between
the parties, because such impositions are not based on the
partiesÊ essential equality. 26
Although escalation clauses are valid in maintaining
fiscal stability and
27
retaining the value of money on long-
term contracts, giving respondent an unbridled right to
adjust the interest independently and upwardly would
completely take away from petitioners the „right to assent
28
to an important modification in their agreement‰ and
would also negate the element of mutuality in their
contracts. The clause cited earlier made the fulfillment of
the contracts
29
„dependent exclusively upon the uncontrolled
will‰ of respondent and was therefore void. Besides, the
pro forma promis-
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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583
38
gally inexistent‰ ·the interest ranging from 39
26 percent to
35 percent in the statements of account ·„must be
equitably reduced
40
for being iniquitous, unconscionable and
exorbitant.‰ Rates found to be iniquitous or
unconscionable are41
void, as if it there were no express
contract thereon. Above all, it is undoubtedly against
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
42
public policy to charge excessively for the use of money.
It cannot be argued that assent to the increases can be
implied either from the June 18, 1991 request of petitioners
for loan restructuring or from their lack of response to the
statements of account sent by respondent. Such request
does not indicate any agreement to an interest increase;
there can be no implied waiver of a right when there is no 43
clear, unequivocal and decisive act showing such purpose.
Besides, the statements were not letters of information
sent to secure their conformity; and even if we were to
presume these as an offer, there was no acceptance. No one
receiving a proposal to modify a loan contract, especially
interest·a 44
vital component·is „obliged to answer the
proposal.‰
Furthermore, respondent did not follow the stipulation
in the Promissory Notes providing for the automatic
conversion of the portion that remained unpaid after 730
days·or two years from date of original release·into a
medium-term loan, subject to the applicable 45 interest rate to
be applied from the dates of original release.
_______________
38 Medel v. Court of Appeals, 359 Phil. 820, 829; 299 SCRA 481, 489,
November 27, 1998, per Pardo, J. See also People v. Dizon, 329 Phil. 685,
696; 260 SCRA 851, 859, August 22, 1996; Liam Law v. Olympic Sawmill
Co., 214 Phil. 385, 388; 129 SCRA 439, 442, May 28, 1984; PeopleÊs
Financing Corp. v. Court of Appeals, 192 SCRA 34, 40, December 4, 1990;
and Javier v. De Guzman Jr., 192 SCRA 434, 439, December 19, 1990.
39 These are billings sent by respondent to petitioner showing the
details of its outstanding claim against the latter as of a given date.
40 Spouses Solangon v. Salazar, supra, p. 822; p. 384.
41 Imperial v. Jaucian, supra, p. 525.
42 De Leon, supra, p. 50.
43 Tolentino, Commentaries and Jurisprudence on the Civil Code of the
Philippines, Vol. I (1990), p. 29.
44 Philippine National Bank v. Court of Appeals, supra at note 25, p.
63, per Mendoza, J. (citing Philippine National Bank v. Court of Appeals,
supra at note 28, pp. 26-27).
45 Exhibits „C‰, „C-1‰, and „C-2‰; Exhibits „13‰, „13-B‰, and „13-C‰;
folder of exhibits, Vol. I, pp. 5-7.
584
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
46 47 48
In the first, second and third Promissory Notes, the
amount that remained unpaid as of October 27, 1989,
December 1989 and January 4, 1990·their respective due
dates·should have been automatically converted by
respondent into medium-term loans on June 30, 1991,
September 2, 1991, and September 7, 1991, respectively.
And on this unpaid amount should have been imposed the
same interest rate charged by respondent on other
medium-term loans; and the rate applied from June 29,
1989, September 1, 1989 and September 6, 1989·their
respective original release·until paid. But these steps
were not taken. Aside from sending demand letters,
respondent did not at all exercise its option to enforce
collection as of these NotesÊ due dates. Neither did it renew
or extend the account.
In these three Promissory Notes, evidently, no complaint
for collection was filed with the courts. It was not until
January 30, 1992 that a Petition for Sale of the mortgaged 49
properties was filed·with the provincial sheriff, instead.
Moreover, respondent did not supply the interest rate to be
charged on medium-term loans granted by automatic
conversion. Because of this deficiency, we shall use the
legal rate of 12 percent per annum on loans and 50
forbearance of money, as provided for by CB Circular 416.
Credit Agreements. Aside from the promissory notes,
another main document involved in the principal obligation
is the set of credit agreements executed
51
and their annexes.
The first Credit Agreement dated June 19, 1989·
although offered and admitted in evidence, and even
referred to in the first Promissory Note·cannot be given
weight.
First, it was not52
signed by respondent through its
branch manager. Apparently it was surreptitiously
acknowledged before respondentÊs counsel, who
unflinchingly declared that it had been
_______________
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
585
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
586
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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587
69
Second, there was no 7-page annex offered
70
in evidence
that contained the General Conditions, notwithstanding
the Acknowledgment of its existence by respondentÊs
counsel. Thus, no terms or conditions could be appended to
the Agreement other than those specified therein.
71
Third, the 12-page General Conditions offered and
admitted in evidence had no probative value. There was no
reference to it in the Acknowledgment of the Agreement;
neither was respondentÊs signature on any of the pages
thereof. Thus, the 72General ConditionsÊ stipulations on
interest adjustment, whether on a fixed or a floating
scheme, had no effect whatsoever on the 73
Agreement.
Contrary to the trial courtÊs findings, the General
74
Condition were correctly objected to by petitioners. The
rate of 21.5 percent agreed upon in the second Note thus
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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588
78
year from the implementation of the Agreement. The
terms and conditions therein continued to apply, even if
availments could no longer be drawn after expiry.
79
Second, there was again no 7-page80 annex offered that
contained the General Conditions, regardless of the
Acknowledgment by the same respondentÊs counsel
affirming its existence. Thus, the terms and conditions in
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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589
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
590
Penalty, or Increases
Thereof, Unjustified
No penalty charges or increases
96
thereof appear either in
the Disclosure Statements or in any of97the clauses in the
second and the third Credit Agreements earlier discussed.
While a standard penalty charge of 6 percent per annum
has been imposed on the amounts stated in all three
Promissory Notes still
98
remaining unpaid or unrenewed
when they fell due, there is no stipulation therein that
would justify any increase in that charges. The effect,
therefore, when the borrower is not clearly informed of the
Disclosure Statements·prior to the consummation of the
availment or drawdown·is that the 99
lender will have no
right to collect upon such charge or increases thereof,
even if stipulated in the Notes. The time is now ripe to give
teeth to the 100
often ignored forty-one-year old „Truth in
Lending Act‰ and thus transform it from a snivelling
paper tiger to a growling financial watchdog of hapless
borrowers.
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
591
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
See Palmares v. Court of Appeals, 351 Phil. 664, 677; 288 SCRA 422, 432,
March 31, 1998; and Garcia v. Court of Appeals, 327 Phil. 1097, 1111; 258
SCRA 446, 456, July 5, 1996.
592
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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593
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
Not Availed Of
We also affirm the CAÊs disquisition on the debt relief
package (DRP).
RespondentÊs Circular is not an119 outright grant of
assistance or extension of payment, but a mere offer
subject to specific terms and conditions.
Petitioner NSBCI failed to establish satisfactorily that it
had been seriously and directly affected by the economic
slowdown in the peripheral areas of the then US military
bases. Its allegations, devoid of any verification, cannot
lead to a supportable conclusion.
_______________
594
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
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The amount, tenor or maturity of the loan must comport with the actual
requirements of the borrower. The purpose of the loan or credit accommodation
must be stated in the application and documentation. Any deviation may cause
acceleration, immediate repayment, foreign currency blacklisting, or
conversion from a term loan to a demand loan. Morales, The Philippine General
Banking Law Annotated (2002), pp. 105-106.
595
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
_______________
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
596
_______________
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
p. 253.
140 Contracts of loan, being consensual, are deemed perfected at the
time the Mortgage is executed. Bonnevie v. Court of Appeals, 210 Phil.
100, 108; 125 SCRA 122, 131, October 24, 1983.
It appears that the Mortgage was executed even before the first
Promissory Note was made, both covering the same amount of availment.
Exhibit „D‰; folder of exhibits, Vol. I, p. 26.
The Amendment to this Mortgage was also executed prior to the
second Note, which was for an increased amount. Exhibit „E‰; Id., pp. 14-
16.
Only the third Note was not secured by the Mortgage, but the fair
market value of the mortgaged properties was even higher than the
value
597
_______________
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
Board, such rate has been increased to 75%, plus 60% of the appraised
value of the insured improvements. This is a less strict benchmark set
out in BSP Circular-Letter dated May 6, 1997. Morales, supra, p. 103.
143 The Abaca Corp. of the Philippines, represented by the Board of
Liquidators v. Garcia, 338 Phil. 988, 993; 272 SCRA 475, 480, May 14,
1997; citing Tiongco v. Philippine Veterans Bank, 212 SCRA 176, August
5, 1992.
144Aquino, Land Registration and Related Proceedings (2002 rev. ed.),
p. 201.
145 See AM No. 99-10-05-0, „Procedure in Extrajudicial Foreclosure of
Mortgage,‰ August 7, 2001.
146 This is in conformity with the procedure laid out in Act No. 3135,
as amended by Act No. 4118. See Fiestan v. Court of Appeals, 185 SCRA
751, 755-757, May 28, 1990; citing Valenzuela v. Aguilar, 118 Phil. 213,
217; 8 SCRA 212, May 31, 1963.
147 Philippine National Bank v. Spouses Rabat, 344 SCRA 706, 716,
November 15, 2000.
148 Peña, Peña, Jr., and Peña, supra, p. 295.
149 Langkaan Realty Development, Inc. v. United Coconut Planters
Bank, 347 SCRA 542, 559, December 8, 2000.
150 It is an absolute and personal privilege, the exercise of which is
entirely dependent upon the will and discretion of the redemptioner. De
Leon, supra, p. 408.
598
_______________
599
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
Add:
Interest at 19.5% p.a.
10/28/89-12/31/89 173,630.14
(5,000,000 x
19.5% x [65/365])
1/1/90-1/5/90 13,356.16 186,986.30 186,986.30
(5,000,000 x
19.5%x [5/365])
Amount due as of 1/5/90 5,186,986.30
Less: Payment on 1/5/90 (pro- 543,807.61 543,807.61
rated up on interest)
Balance (356,821.30) 4,643,178.70
Add:
Interest at 19.5% p.a.
1/6/90-3/30/90 208,370.59 208,370.59
([5,000,000-
356,821.30] x
19.5%x [84/365])
Amount due as of 3/30/90 4,851,549.29
Less: Payment on 163,182.85 163,182.85
3/30/90 (pro-rated
up on interest)
Balance 45,187.75 4,688,366.44
Add:
Interest at 19.5% p.a.
3/31/90-5/31/90 ([5,000,000- 153,797.34 153,797.34
356,821.30] x 19.5%x
[62/365])
Amount due as of 5/31/90 198,985.09 4,842,163.79
Less: Payment on 5/31/90 199,806.42 199,806.42
(pro-rated up on interest)
Balance (821.33) 4,642,357.36
Add:
Interest at 19.5% p.a.
6/1/90-6/29/90 ([5,000,000- 71,924.74 71,924.74
(356,821.30+821.33)] x 19.5%
x [29/365)]
Amount due as of 6/29/90 4,714,282.11
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
600
Add:
Interest at 19.5% p.a.
6/30/90-12/31/90 ([5,000,000- 383,014.64
(356,821.30+821.33+767,087.92)]x
19.5% x [185/365])
1/1/91-6/29/91 ([5,000,000- 372,662.90
(356,821.30+821.33+767,087.92)]
x 19.5% x [180/365])
Interest at 12% p.a. upon automatic conversion
6/30/91-8/8/91 ([5,000,000- 50,962.45 806,639.99 806,639.99
(36,821.30+821.33+767,087.92)] x
12% x [40/365])
Amount due as of 8/8/91 4,681,909.43
Less: Payment on 8/8/91 (pro-rated upon 493,906.31 493,906.31
interest)
Balance 312,733.68 4,188,003.13
Add:
Interest at 12% p.a.
8/9/91-8/15/91 ([5,000,000- 8,918.43 8,918.43
(356,821.30+821.33+767,087.92)] x 12% x
[7/365])
Amount due as of 8/15/91 321,652.11 4,196,921.55
Less: Payment on 8/15/91 (pro-rated upon 86,593.37 86,593.37
interest)
Balance 235,058.74 4,110,328.18
Add:
Interest at 12% p.a.
8/16/91-11/29/91 ([5,000,000- 135,050.49 135,050.49
(356,821.30+821.33+767,087.92)]x 12% x
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
[106/365])
Amount due as of 11/29/91 370,109.22 4,245,378.67
Less: Payment on 11/29/91 (pro-rated upon 161,096.81 161,096.81
interest)
Balance 209,012.41 4,084,281.86
Add:
Interest at 12% p.a.
11/30/91-12/20/91 ([5,000,000- 26,755.28 26,755.28
(356,821.30+821.33+767,087.92)] x12% x
[21/365])
Amount due as of 12/20/91 235,767.70 4,111,037.14
Less: Payment on 12/20/91 (pro-rated upon 162,115.78 162,115.78
interest)
Balance 73,651.92 3,948,921.3
Add:
Interest at 12% p.a.
12/21/91-12/31/91 ([5,000,000- 14,281.03
(356,821.30+821.33+767,087.92)]
x12% x [11/365])
1/1/92-2/26/92 ([5,000,000- 74,001.70 88,282.74 88,282.74
(356,821.30+821.33+767,087.92)]
x 12% x [57/365])
Amount due on PN (1) asof 2/26/92 161,934.66 P4,037,204.10
601
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
602
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
Add:
Interest at 21.5% p.a.
6/30/90-12/31/90 ([2,700,000- 238,953.28
(18,209.65+523.04+488,484.22)]
x 21.5%x [185/365])
1/1/91-8/8/91 ([2,700,000- 284,160.66 523,113.94 523,113.94
(18,209.65+523.04+488,484.22)]
x 21.5%x [220/365])
Amount due as of 8/8/91 2,715,897.04
Less: Paymenton 8/8/91 (pro-rated upon 320,303.08 320,303.08
interest)
Balance 202,810.86 2,395,593.95
Add:
Interest at 21.5% p.a.
8/9/91-8/15/91 ([2,700,000- 9,041.48 9,041.48
(18,209.65+523.04+488,484.22)] x 21.5% x
[7/365])
Amount due as of 8/15/91 211,852.33 2,404,635.43
Less: Payment on 8/15/91 (pro-rated upon 57,033.69 57,033.69
interest)
Balance 154,818.64 2,347,601.74
Add:
Interest at 21.5% p.a.
8/16/91-9/1/91 ([2,700,000- 21,957.87
(18,209.65+523.04+488,484.22)]
x 21.5% x [17/365])
Interest at 12% p.a. upon automatic conversion
9/2/91-11/29/91 ([2,700,000- 64,161.43 86,119.30 86,119.30
(18,209.65+523.04+488,484.22)]
x 12% x [89/365])
Amount due as of 11/29/91 240,937.94 2,433,721.04
Less: Payment on 11/29/91 (pro-rated upon 104,872.65 104,872.65
interest)
Balance 136,065.30 2,328,848.39
Add:
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
603
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
604
Add:
Interest at 21.5% p.a.
6/30/90-12/31/90 ([300,000- 26,700.60
(337.22+58.44+54,583.14)]
x 21.5% x [185/365])
1/1/91-8/8/91 ([300,000- 31,752.06 58,452.66 58,452.66
(337.22+58.44+54,583.14)]]
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
x 21.5% x [220/365])
Amount due as of 8/8/91 303,473.86
Less:Payment on 8/8/91 (pro-rated 35,790.61 35,790.61
upon interest)
Balance 22,662.05 267,683.25
Add:
Interest at 21.5% p.a.
8/9/91-8/15/91 ([300,000- 1,010.29 1,010.29
(337.22+58.44+54,583.14)]] x 21.5% x
[7/365])
Amount due as of 8/15/91 23,672.34 268,693.54
Less: Payment on 8/15/91 (pro-rated 6,372.93 6,372.93
upon interest)
Balance 17,299.41 262,320.61
Add:
Interest at 21.5% p.a.
8/16/91-9/6/91 ([300,000- 3,175.21
(337.22+58.44+54,583.14)]]
x 21.5% x [22/365])
Interest at 12% p.a. upon automatic conversion
9/7/91-11/29/91 ([300,000- 6,766.61 9,941.82 9,941.82
(337.22+58.44+54,583.14)]]
x 12% x [84/365])
Amount due as of 11/29/91 27,241.23 272,262.43
Less: Payment on 11/29/91 (pro-rated 11,857.24 11,857.24
upon interest)
Balance 15,383.98 260,405.18
Add:
Interest at 12% p.a.
11/30/91-12/20/91 ([300,000- 1,691.65 1,691.65
(337.22+58.44+54,583.14)]] x 12% x
[21/365])
Amount due as of 12/20/91 17,075.64 262,096.84
Less: Payment on 12/20/91 (pro-rated 11,741.35 11,741.35
upon interest)
Balance 5,334.29 250,355.49
Add:
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
605
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
606
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
_______________
607
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
_______________
608
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
_______________
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
prop-
609
_______________
erty. Peña, Peña Jr., and Peña, supra, p. 255. See Spouses Belo v.
Philippine National Bank, 353 SCRA 359, 371, March 1, 2001.
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SUPREME COURT REPORTS ANNOTATED VOLUME 435 1/18/21, 9:58 PM
610
··o0o··
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