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    G.R. No. L-45710 October 3, 1985

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    Vin Lacsie
    Credit Transaction Case: CENTRAL BANK OF THE PHILIPPINES and ACTING DIRECTOR ANTONIO T. CASTRO, JR. OF THE DEPARTMENT OF COMMERCIAL AND SAVINGS BANK, in his capacity as statutory receiver of Island Savings Bank vs. THE HONORABLE COURT OF APPEALS and SULPICIO M. TOLENTINO G.R. No. L-45710 October 3, 1985

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    G.R. No. L-45710 October 3, 1985

    Uploaded by

    Vin Lacsie
    204 views1 page
    Credit Transaction Case: CENTRAL BANK OF THE PHILIPPINES and ACTING DIRECTOR ANTONIO T. CASTRO, JR. OF THE DEPARTMENT OF COMMERCIAL AND SAVINGS BANK, in his capacity as statutory receiver of Island Savings Bank vs. THE HONORABLE COURT OF APPEALS and SULPICIO M. TOLENTINO G.R. No. L-45710 October 3, 1985

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    Credit Transaction Case: CENTRAL BANK OF THE PHILIPPINES and ACTING DIRECTOR ANTONIO T. CASTRO, JR. OF THE DEPARTMENT OF COMMERCIAL AND SAVINGS BANK, in his capacity as statutory receiver of Island Savings Bank vs. THE HONORABLE COURT OF APPEALS and SULPICIO M. TOLENTINO G.R. No. L-45710 October 3, 1985

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    204 views1 page

    G.R. No. L-45710 October 3, 1985

    Uploaded by

    Vin Lacsie
    Credit Transaction Case: CENTRAL BANK OF THE PHILIPPINES and ACTING DIRECTOR ANTONIO T. CASTRO, JR. OF THE DEPARTMENT OF COMMERCIAL AND SAVINGS BANK, in his capacity as statutory receiver of Island Savings Bank vs. THE HONORABLE COURT OF APPEALS and SULPICIO M. TOLENTINO G.R. No. L-45710 October 3, 1985

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CENTRAL BANK OF THE PHILIPPINES and ACTING DIRECTOR ANTONIO T.

    CASTRO, JR. OF THE DEPARTMENT OF COMMERCIAL AND SAVINGS BANK, in


    his capacity as statutory receiver of Island Savings Bank vs. THE
    HONORABLE COURT OF APPEALS and SULPICIO M. TOLENTINO
    G.R. No. L-45710 October 3, 1985
    On April 28, 1965, Island Savings Bank, upon favorable recommendation of its legal
    department, approved the loan application for P80,000.00 of Sulpicio M. Tolentino,
    who, as a security for the loan, executed on the same day a real estate mortgage.
    The approved loan application called for a lump sum P80,000.00 loan. On May 22,
    1965, a mere P17,000.00 partial release of the P80,000.00 loan was made by the
    Bank. An advance interest for the P80,000.00 loan covering a 6-month period
    amounting to P4,800.00 was deducted from the partial release of P17,000.00. But
    this pre-deducted interest was refunded to Sulpicio M. Tolentino on July 23, 1965,
    after being informed by the Bank that there was no fund yet available for the
    release of the P63,000.00 balance (p. 47, rec.). The Bank, thru its vice-president and
    treasurer, promised repeatedly the release of the P63,000.00 balance. On January
    20, 1969, Sulpicio M. Tolentino filed a petition with the Court of First Instance of
    Agusan for injunction, specific performance or rescission and damages with
    preliminary injunction, alleging that since Island Savings Bank failed to deliver the
    P63,000.00 balance of the P80,000.00 loan, he is entitled to specific performance by
    ordering Island Savings Bank to deliver the P63,000.00 with interest.
    Can the action of Sulpicio M. Tolentino for specific performance prosper?
    When Island Savings Bank and Sulpicio M. Tolentino entered into an P80,000.00 loan
    agreement on April 28, 1965, they undertook reciprocal obligations. In reciprocal
    obligations, the obligation or promise of each party is the consideration for that of
    the other (Penaco vs. Ruaya, 110 SCRA 46 [1981]; Vda. de Quirino vs, Pelarca 29
    SCRA 1 [1969]); and when one party has performed or is ready and willing to
    perform his part of the contract, the other party who has not performed or is not
    ready and willing to perform incurs in delay (Art. 1169 of the Civil Code). The
    promise of Sulpicio M. Tolentino to pay was the consideration for the obligation of
    Island Savings Bank to furnish the P80,000.00 loan. When Sulpicio M. Tolentino
    executed a real estate mortgage on April 28, 1965, he signified his willingness to
    pay the P80,000.00 loan. From such date, the obligation of Island Savings Bank to
    furnish the P80,000.00 loan accrued. Thus, the Bank's delay in furnishing the entire
    loan started on April 28, 1965, and lasted for a period of 3 years or when the
    Monetary Board of the Central Bank issued Resolution No. 967 on June 14, 1968,
    which prohibited Island Savings Bank from doing further business. Such prohibition
    made it legally impossible for Island Savings Bank to furnish the P63,000.00 balance
    of the P80,000.00 loan. The power of the Monetary Board to take over insolvent
    banks for the protection of the public is recognized by Section 29 of R.A. No. 265,
    which took effect on June 15, 1948, the validity of which is not in question.

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