Legal Insights

Mortgagor's Stipulated Right to Notice Prevails in Foreclosure Proceedings

Supreme Court rules banks must honor contractual stipulations requiring personal notice to mortgagors before extrajudicial foreclosure, or risk nullifying the sale.

Sugar Mill Loans: When Contract Terms Define Government's Right to Recover Funds

Supreme Court ruling on condonation scope in sugar mill loans, clarifying when banks and government can apply deposits to unpaid obligations.

Reconveyance Actions and Good Faith: Clarifying Property Rights in the Philippines

The Supreme Court explains res judicata and good faith in reconveyance actions, protecting banks that rely on court-issued titles.

SPV Law Notice Requirements: Protecting Debtor Rights in Asset Transfers

Learn how the SPV Law's notice requirements protect debtors when banks transfer non-performing loans to special purpose vehicles.

Mortgagee's Duty to Verify Buyers Under PD 957: DBP v. Capulong

Philippine Supreme Court clarifies that banks financing real estate projects must verify subdivision lot buyers before foreclosing mortgaged properties under PD 957.

Banks' Duty to Depositors: No Unilateral Freezing Without Court Order

Supreme Court rules banks cannot unilaterally freeze depositor accounts based on mere suspicion, reaffirming fiduciary duty to treat accounts with meticulous care.

Crossed Checks and Collecting Banks: Who Bears the Loss for Wrong Endorsement?

Learn when a collecting bank is liable for depositing a crossed check into the wrong account, and the duty to verify endorsements.

Mutuality of Contracts: The Limits of Unilateral Interest Rate Adjustments in Loan Agreements

Philippine Supreme Court ruling on when banks cannot unilaterally raise loan interest rates without borrower consent, citing mutuality of contracts.

Unauthorized Real Estate Mortgage: Strict Interpretation of Special Power of Attorney

When a special power of attorney fails to identify the exact property, a mortgage over it is unenforceable. The Supreme Court explains why banks must verify authority.

When Can a Foreclosure Be Stopped? The Rule on Injunctions Against Banks

Philippine law makes it hard to stop a bank foreclosure. This case explains when courts may—and may not—issue an injunction.

Beyond the Title: Why Philippine Banks Must Investigate Loan Collateral Ownership

Philippine Supreme Court ruling on Omengan v. PNB clarifies banks' duty to investigate collateral ownership beyond the certificate of title.

Strict Deadlines Matter Navigating SEC Appeals AND Corporate Liability FOR Unlicensed Brokers IN THE Philippin

When is a bank liable for breach of contract in a credit line dispute? The Supreme Court clarifies the rules on conditional loan approvals and the duty of banks to exercise prudence in dealing with re

Protecting Your Property Investments: Understanding Buyer in Good Faith in Philippine Real Estate Law

Learn how Philippine courts treat "buyer in good faith" and banks' duty of diligence in real estate transactions, based on a Supreme Court ruling.

Tax Clearance Not Required for BSP-Ordered Bank Liquidation in the Philippines

Supreme Court ruling: banks closed by the BSP and liquidated by PDIC need not secure a BIR tax clearance before asset distribution.

When Courts Can Compel Disclosure of Foreign Currency Deposits in the Philippines

Philippine Supreme Court clarifies when courts may compel banks to disclose foreign currency deposits despite the secrecy rule under RA 6426.

Bank Set-Off Rights: Limits and Liabilities in Loan Agreements

Philippine Supreme Court ruling on when banks may validly offset deposits against loans, and the limits of contractual set-off rights.

Gross Receipts TAX THE Inclusion OF Final Withholding TAX IN Banks Taxable Income

Altered Checks and Bank Liability: Material Alterations Under the Negotiable Instruments Law

Explaining when a check alteration is material under the NIL, and the liability of drawee banks for returning altered checks.

Restarting the Clock: Minimum Corporate Income Tax and the Revival of Thrift Banks

When a closed bank reopens as a thrift bank, when does its MCIT grace period begin? The Supreme Court settles the rule.

MCIT Grace Period for Reopened Banks: The Manila Banking Corporation Ruling

Supreme Court clarifies when a bank that reopens after receivership starts its four-year MCIT grace period under the Tax Code.

Credit Card Debt Understanding Interest Terms AND Consumer Rights IN THE Philippines

Learn how Philippine courts protect creditors from fraudulent schemes by banks and directors, and what this means for consumer rights.

Mortgage on Unregistered Land in the Philippines: Risks and Due Diligence for Banks and Borrowers

Learn the risks of mortgaging unregistered land in the Philippines and the due diligence banks and borrowers must perform before foreclosure.

Burden of Proof in Bank Overdraft Claims: Security Bank v. Gan

Banks must prove overdraft claims with competent evidence; ledger entries alone are insufficient when the entrant lacks personal knowledge.

Gross Receipts TAX Including Final TAX IN THE TAX Base FOR Banks