CREDIT 2C: Atty.

Romero- SYLLABUS
Pantaleon v. AMEX, GR 174269 (Aug. 25, 2010)
When cardholders use their credit cards to pay for their
OUTLINE 1: INTRODUCTION
purchases, they merely offer to enter into loan agreements
with the credit card company—only after the latter approves
A. Contract TO Loan vs Contract OF Loan – Art. 1933
the purchase requests that the parties enter into binding loan
> A contract to loan is constituted when there is an accepted
contracts.
promise to deliver but not yet followed by the delivery itself.

> However, in a contract of loan, delivery of the thing is required B. Nature of COL – real contract; when perfected – Art. 1934
for the contract to be perfected. Garcia v. Thio GR 154878 (Mar. 16, 2007)
An accepted promise to deliver something by way of
Saura Import v. DBP, GR L- 24968 (April 27, 1972): An commodatum or simple loan is binding upon the parties, but
the commodatum or simple loan itself shall not be perfected
accepted promise to deliver something by way of commodatum
until the delivery of the object of the contract.
or simple loan is binding upon the parties, but the
commodatum or simple loan itself shall not be perfected until
the delivery of the object of the contract. There was a C. Commodatum versus Mutuum (simple loan)
perfected consensual contract, as recognized in Art. 1934. But As to object : Non consumable vs consumable or money
this fact alone falls short of resolving the second issue and the
basic claim that DBP failed to fulfill its obligation and that Saura As to ownership of an object: Bailor retains ownership vs
is therefore entitled to recover damages. ownership is transferred to the borrower.

BPI Investment v. CA, GR 133632 (Feb. 15, 2002): A As to consideration: Gratuitous vs Onerous
loan contract is not a consensual contract but a real contract. It
is perfected only upon delivery of the object of the contract. A As to obligation of debtor: the obligation of the bailee in a
contract o loan involves a reciprocal obligation, wherein the commodatum is to return the object borrowed vs the obligation
obligation or promise of each party is the consideration for that on a mutuum is to pay or replace the object with the same value.
of the other; it is a basic principle in reciprocal obligations that
neither party incurs in delay, if the other does not comply or is D. Distinguish Contract of Loan from LEASE
not ready to comply is a proper manner with what is incumbent 1. Commodatum
upon him. A. General Concepts – Art. 1993
Art. 1933. By the contract of loan, one of the parties delivers to
it, in which case the contract is called a commodatum; or
another, either something not consumable so that the latter may
money or other consumable thing, upon the condition that the
use the same for a certain time and return it, in which case the
same amount of the same kind and quality shall be paid, in
contract is called a commodatum; or money or other consumable
which case the contract is simply called a loan or mutuum.
thing, upon the condition that the same amount of the same kind
Commodatum is essentially gratuitous.
and quality shall be paid, in which case the contract is simply
The foregoing provision seems to imply that if the subject of
called a loan or mutuum.
the contract is a consumable thing, such as money, the
contract would be a mutuum. However, there are some
Commodatum is essentially gratuitous.
instances where a commodatum may have for its object a
consumable thing.
Simple loan may be gratuitous or with a stipulation to pay
Article 1936 of the Civil Code provides: Consumable goods may
interest.
be the subject of commodatum if the purpose of the contract is
not the consumption of the object, as when it is merely for
In commodatum the bailor retains the ownership of the thing
exhibition. Thus, if consumable goods are loaned only for
loaned, while in simple loan, ownership passes to the borrower.
purposes of exhibition, or when the intention of the parties is
(1740a)
to lend consumable goods and to have the very same goods
returned at the end of the period agreed upon, the loan is a
B. Object - Art. 1937, 1936
commodatum and not a mutuum.
The rule is that the intention of the parties thereto shall be
Art. 1936. Consumable goods may be the subject of
accorded primordial consideration in determining the actual
commodatum if the purpose of the contract is not the
character of a contract. In case of doubt, the contemporaneous
consumption of the object, as when it is merely for exhibition. (n)
and subsequent acts of the parties shall be considered in such
determination.
Art. 1937. Movable or immovable property may be the object of
commodatum. (n)
CASE: Producers Bank v. CA, GR. 115324 (Feb. 19, C. Consideration - Art. 1933, 1935, 1939
2003) - Liberality on the part of bailor
Article 1933 of the Civil Code distinguishes between the two - Permissive use on the part of bailee
kinds of loans in this wise: By the contract of loan, one of the Art. 1933. By the contract of loan, one of the parties delivers to
parties delivers to another, either something not consumable so another, either something not consumable so that the latter may
that the latter may use the same for a certain time and return use the same for a certain time and return it, in which case the
contract is called a commodatum; or money or other consumable
thing, upon the condition that the same amount of the same kind Art. 1938. The bailor in commodatum need not be the owner of
and quality shall be paid, in which case the contract is simply the thing loaned. (n)
called a loan or mutuum.
Commodatum is essentially gratuitous. Art. 1933. By the contract of loan, one of the parties delivers to
another, either something not consumable so that the latter may
Simple loan may be gratuitous or with a stipulation to pay use the same for a certain time and return it, in which case the
interest. contract is called a commodatum; or money or other consumable
thing, upon the condition that the same amount of the same kind
In commodatum the bailor retains the ownership of the thing and quality shall be paid, in which case the contract is simply
loaned, while in simple loan, ownership passes to the borrower. called a loan or mutuum.
(1740a) Commodatum is essentially gratuitous.

Art. 1935. The bailee in commodatum acquires the used of the Simple loan may be gratuitous or with a stipulation to pay
thing loaned but not its fruits; if any compensation is to be paid interest.
by him who acquires the use, the contract ceases to be a
commodatum. (1941a) In commodatum the bailor retains the ownership of the thing
loaned, while in simple loan, ownership passes to the borrower.
Art. 1939. Commodatum is purely personal in character. (1740a)
Consequently:
- Use by Bailee – Art. 1935, 1940, 1939
(1) The death of either the bailor or the bailee extinguishes the
contract; Art. 1935. The bailee in commodatum acquires the used of the
thing loaned but not its fruits; if any compensation is to be paid
(2) The bailee can neither lend nor lease the object of the by him who acquires the use, the contract ceases to be a
contract to a third person. However, the members of the bailee's commodatum. (1941a)
household may make use of the thing loaned, unless there is a
stipulation to the contrary, or unless the nature of the thing Art. 1939. Commodatum is purely personal in character.
forbids such use. (n) Consequently:

D. Parties (1) The death of either the bailor or the bailee extinguishes the
- Ownership by Bailor – Art. 1938, 1933 contract;
(2) The bailee can neither lend nor lease the object of the In commodatum the bailor retains the ownership of the thing
contract to a third person. However, the members of the bailee's loaned, while in simple loan, ownership passes to the borrower.
household may make use of the thing loaned, unless there is a (1740a)
stipulation to the contrary, or unless the nature of the thing
forbids such use. (n) Art. 1935. The bailee in commodatum acquires the used of the
thing loaned but not its fruits; if any compensation is to be paid
Art. 1940. A stipulation that the bailee may make use of the by him who acquires the use, the contract ceases to be a
fruits of the thing loaned is valid. (n) commodatum. (1941a)

E. Liability
- Solidary Liability of Bailees - Art. 1945 Art. 1941. The bailee is obliged to pay for the ordinary expenses
Art. 1945. When there are two or more bailees to whom a thing for the use and preservation of the thing loaned. (1743a)
is loaned in the same contract, they are liable solidarily. (1748a)
Art. 1943. The bailee does not answer for the deterioration of
- Liabilty for Expenses and Damages the thing loaned due only to the use thereof and without his
fault. (1746)
Note : Give examples of the following:

a) Ordinary expenses – Art. 1933, 1935, 1941, 1943

CASE: Pajuyo v. CA, GR 146364 (June 3, 2004)
"In a contract of commodatum, one of the parties delivers to
Art. 1933. By the contract of loan, one of the parties delivers to
another something not consumable so that the latter may use
another, either something not consumable so that the latter may
the same for a certain time and return it. An essential feature
use the same for a certain time and return it, in which case the
of commodatum is that it is gratuitous."
contract is called a commodatum; or money or other consumable
thing, upon the condition that the same amount of the same kind
and quality shall be paid, in which case the contract is simply b) Extraordinary Expenses – Art. 1949
called a loan or mutuum.
Commodatum is essentially gratuitous. Article 1949. The bailor shall refund the extraordinary expenses
during the contract for the preservation of the thing loaned,
Simple loan may be gratuitous or with a stipulation to pay provided the bailee brings the same to the knowledge of the
interest.
bailor before incurring them, except when they are so urgent that (4) If he lends or leases the thing to a third person, who is not a
the reply to the notification cannot be awaited without danger. member of his household;

c) Other expenses – Art. 1950 (5) If, being able to save either the thing borrowed or his own
thing, he chose to save the latter. (1744a and 1745)
Art. 1950. If, for the purpose of making use of the thing, the
bailee incurs expenses other than those referred to in Articles
CASE: Rep. v. Bagtas GR L-17474, Oct. 25, 1962:
1941 and 1949, he is not entitled to reimbursement. (n)
Art. 1942. The bailee is liable for the loss of the thing, even if
Abandonment by Bailor – Art. 1952
it should be through a fortuitous event:
xxx
Art. 1952. The bailor cannot exempt himself from the payment
(2) If he keeps it longer than the period stipulated, or after the
of expenses or damages by abandoning the thing to the bailee.
accomplishment of the use for which the commodatum has
(n)
been constituted;

Liability for Loss - Art. 1942

(3) If the thing loaned has been delivered with appraisal of its
value, unless there is a stipulation exemption the bailee from
Art. 1942. The bailee is liable for the loss of the thing, even if it
responsibility in case of a fortuitous event;
should be through a fortuitous event:

(1) If he devotes the thing to any purpose different from that for
which it has been loaned; F. Obligation to Return

(2) If he keeps it longer than the period stipulated, or after the General rule – Art. 1946, first sentence
accomplishment of the use for which the commodatum has been Art. 1946. The bailor cannot demand the return of the thing
constituted; loaned till after the expiration of the period stipulated, or after
the accomplishment of the use for which the commodatum has
(3) If the thing loaned has been delivered with appraisal of its been constituted.
value, unless there is a stipulation exemption the bailee from
responsibility in case of a fortuitous event; Exceptions - Art. 1946, last sentence, 1st par.
“In case of temporary use by the bailor, the contract of G. Right of Retention of Bailee
commodatum is suspended while the thing is in the possession of
the bailor. (1749a)” Gen. Rule - Art. 1944

Art. 1946, 2nd par:.”However, if in the meantime, he should Article 1944. The bailee cannot retain the thing loaned on the
have urgent need of the thing, he may demand its return or ground that the bailor owes him something, even though it may
temporary use.” be by reason of expenses. However, the bailee has a right of
retention for damages mentioned in article 1951. (1747a)
Art. 1947 on precarium: “Art. 1947. The bailor may demand
the thing at will, and the contractual relation is called a Exception - Art. 1951
precarium, in the following cases: Article 1951. The bailor who, knowing the flaws of the thing
loaned, does not advise the bailee of the same, shall be liable to
(1) If neither the duration of the contract nor the use to which the latter for the damages which he may suffer by reason
the thing loaned should be devoted, has been stipulated; or thereof. (1752)

(2) If the use of the thing is merely tolerated by the owner. 2. Mutuum / Simple Loan
(1750a)
A. General Concepts – Art. 1933, 1980
-Article 1948. The bailor may demand the immediate return of
the thing if the bailee commits any act of ingratitude specified in Article 1933. By the contract of loan, one of the parties delivers
article 765. (n) to another, either something not consumable so that the latter
may use the same for a certain time and return it, in which case
the contract is called a commodatum; or money or other
Quintos v. Beck GR L-46240 (Nov. 3, 1939)
consumable thing, upon the condition that the same amount of
The contract entered into between the parties is one of
the same kind and quality shall be paid, in which case the
commadatum, because under it the plaintiff gratuitously
contract is simply called a loan or mutuum.
granted the use of the furniture to the defendant, reserving for
herself the ownership thereof; by this contract the defendant
Commodatum is essentially gratuitous.
bound himself to return the furniture to the plaintiff, upon the
latters demand.
Simple loan may be gratuitous or with a stipulation to pay
interest.
In commodatum the bailor retains the ownership of the thing D. Obligation to Pay - Art. 1955, 1250
loaned, while in simple loan, ownership passes to the borrower.
(1740a) Article 1955. The obligation of a person who borrows money
shall be governed by the provisions of articles 1249 and 1250 of
Article 1980. Fixed, savings, and current deposits of money in this Code.
banks and similar institutions shall be governed by the provisions
concerning simple loan. (n) If what was loaned is a fungible thing other than money, the
debtor owes another thing of the same kind, quantity and quality,
B. Object of Simple Loan – Art. 1953 even if it should change in value. In case it is impossible to
deliver the same kind, its value at the time of the perfection of
Article 1953. A person who receives a loan of money or any the loan shall be paid. (1754a)
other fungible thing acquires the ownership thereof, and is bound
to pay to the creditor an equal amount of the same kind and E. Most common types of written promise to pay – notes, bonds,
quality. (1753a) Debentures

C. Distinguish from Barter - Art. 1953 vs. 1954 OUTLINE 2: INTEREST

Article 1954. A contract whereby one person transfers the l. INTEREST: It is the compensation allowed by law or fixed by
ownership of non-fungible things to another with the obligation the parties for the loan or forbearance of money, goods or credits
on the part of the latter to give things of the same kind, quantity, (conventional interest), or the amount imposed by law or by
and quality shall be considered a barter. (n) courts as penalty or indemnity for damages (compensatory
interest).

1) Conventional interest - Arts. 1933, 1956, 1253, 1958,

People v. Puig GR 173654-765 (Aug. 28, 2008)
1960, 2154, 1423
The Bank acquires ownership of the money deposited by its
NOTE: It is the interest expressly stipulated in writing by the
clients; and the employees of the Bank, who are entrusted with
parties in a contract of loan. [Art. 1956, NCC]
the possession of money of the Bank due to the confidence
Art. 1933. By the contract of loan, one of the parties delivers to
reposed in them, occupy positions of confidence.
another, either something not consumable so that the latter may
use the same for a certain time and return it, in which case the
BPI Family Bank v. Franco GR 123498 (Nov. 23, 2007): contract is called a commodatum; or money or other consumable
thing, upon the condition that the same amount of the same kind
and quality shall be paid, in which case the contract is simply not grant a right of action to enforce their performance, but after
called a loan or mutuum. voluntary fulfillment by the obligor, they authorize the retention
of what has been delivered or rendered by reason thereof. Some
Commodatum is essentially gratuitous. Simple loan may be natural obligations are set forth in the following articles.
gratuitous or with a stipulation to pay interest.
Frias v. San Diego – Sison G.R. 155223; April 3, 2007
In commodatum the bailor retains the ownership of the thing
The agreement that the amount given shall bear
loaned, while in simple loan, ownership passes to the borrower.
compounded bank interest for the last 6 months only, i.e.,
(1740a)
referring to the second 6-month period, does not mean that
Art. 1956. No interest shall be due unless it has been expressly
interest will no longer be charged after the second 6-month
stipulated in writing. (1755a)
period since such stipulation was made on the logical and
reasonable expectation that such amount would be paid
Art. 1253. If the debt produces interest, payment of the
within the date stipulated. Considering that Frias failed to
principal shall not be deemed to have been made until the
pay the amount given which under the MOA shall be
interests have been covered. (1173)
considered as a loan, the monetary interest for the last 6
months continued to accrue until actual payment of the
Art. 1958. In the determination of the interest, if it is payable in
loaned amount.
kind, its value shall be appraised at the current price of the
products or goods at the time and place of payment. (n) Siga-an v. Villanueva G.R. 173227; Jan. 20, 2009

Art. 1960. If the borrower pays interest when there has been no PNB v. Rocamora G.R. 164549; Sept. 18, 2009
stipulation therefore, the provisions of this Code concerning
solutio indebiti, or natural obligations, shall be applied, as the Concepcion v. CA G.R. 122079; June 27, 1997 Some
case may be. (n) contracts contain what is known as an "escalator clause,"
which is defined as one in which the contract fixes a base
Art. 2154. If something is received when there is no right to price but contains a provision that in the event of specified
demand it, and it was unduly delivered through mistake, the cost increases, the seller or contractor may raise the price
obligation to return it arises. (1895) up to a fixed percentage of the base.

Art. 1423. Obligations are civil or natural. Civil obligations give a 2) Interest on interest – Arts. 1959, 2212
right of action to compel their performance. Natural obligations, NOTE: – that which is imposed interest due and unpaid. The
not being based on positive law but on equity and natural law, do accrued interest is added to the principal sum and the whole is
treated as a new principal upon which the interest for the next
period is calculated [Arts. 1959 and 2212, NCC]. However, the demand by the creditor shall not be necessary in
order that delay may exist:
Art. 1959. Without prejudice to the provisions of Article 2212,
interest due and unpaid shall not earn interest. However, the (1) When the obligation or the law expressly so declare; or
contracting parties may by stipulation capitalize the interest due
and unpaid, which as added principal, shall earn new interest. (n) (2) When from the nature and the circumstances of the obligation
it appears that the designation of the time when the thing is to
Art. 2212. Interest due shall earn legal interest from the time it be delivered or the service is to be rendered was a controlling
is judicially demanded, although the obligation may be silent motive for the establishment of the contract; or
upon this point. (1109a)
(3) When demand would be useless, as when the obligor has
rendered it beyond his power to perform.
Isla v. Estorga GR 233974; July 2, 2018 Case law states
that there are two (2) types of interest, namely, monetary
In reciprocal obligations, neither party incurs in delay if the other
interest and compensatory interest. Monetary interest is the
does not comply or is not ready to comply in a proper manner
compensation fixed by the parties for the use or forbearance
with what is incumbent upon him. From the moment one of the
of money. On the other hand, compensatory interest is that
parties fulfills his obligation, delay by the other begins. (1100a)
imposed by law or by the courts as penalty or indemnity for
damages. Accordingly, the right to recover interest arises
Art. 1226. In obligations with a penal clause, the penalty shall
only either by virtue of a contract (monetary interest) or as
substitute the indemnity for damages and the payment of
damages for delay or failure to pay the principal loan on
interests in case of noncompliance, if there is no stipulation to
which the interest is demanded (compensatory interest).
the contrary. Nevertheless, damages shall be paid if the obligor
refuses to pay the penalty or is guilty of fraud in the fulfillment of
3) Compensatory/ Penalty/ Indemnity interest – Arts. the obligation.
1169, 1226, 2209, 2213, 2226, 2227
NOTE: Refers to the penalty or indemnity for damages imposed The penalty may be enforced only when it is demandable in
by law or by the court [Sun Life of Canada v. Sandra Tan Kit, accordance with the provisions of this Code. (1152a)
2014].
Art. 1169. Those obliged to deliver or to do something incur in Art. 2209. If the obligation consists in the payment of a sum of
delay from the time the obligee judicially or extrajudicially money, and the debtor incurs in delay, the indemnity for
demands from them the fulfillment of their obligation. damages, there being no stipulation to the contrary, shall be the
payment of the interest agreed upon, and in the absence of
Ligutan v. CA G.R. 138677; Feb. 12, 2002 The essence or
stipulation, the legal interest, which is six per cent per annum.
rationale for the payment of interest, quite often referred to as
(1108)
the cost of money, is not exactly the same as that of a
Art. 2213. Interest cannot be recovered upon unliquidated
surcharge or a penalty. A penalty stipulation is not necessarily
claims or damages, except when the demand can be established
preclusive of interest if there is an agreement to that effect,
with reasonably certainty.
the two being distinct concepts that may separately be
Art. 2226. Liquidated damages are those agreed upon by the
demanded. The interest prescribed in loan financing
parties to a contract, to be paid in case of breach thereof.
arrangements is a fundamental part of the banking business
Art. 2227. Liquidated damages, whether intended as an
and the core of a bank’s existence.
indemnity or a penalty, shall be equitably reduced if they are
iniquitous or unconscionable.
4) CB Circ. 905 suspended interest rate ceilings; effect on
Lara’s Gifts v. Midtown Inc. G.R. 225433; Aug. 28, 2019
Usury Law
The general rule is that the interest stipulated by the parties
NOTE: C.B. Circular No. 905 allowed the contracting parties to
shall apply, provided it is not excessive and unconscionable.
stipulate freely regarding any subsequent adjustment in the
Absent any stipulation, the Court has consistently held that the
interest rate that shall accrue on a loan or forbearance of money,
prevailing legal interest prescribed by the Bangko Sentral ng
goods or credits. In other words, they can agree to adjust, to
Pilipinas applies to loans or forbearance of money, goods or
increase or to decrease, the interest previously stipulated.
credits, as well as to judgments.

State Investment House v. CA G.R. 90676; June 19, Carpo v. Chua & Dy Ng G.R. 150773; Sept. 30,
1991 Under Article 1256 of the Civil Code, if the creditor to 2005
whom tender of payment has been made refuses without just
cause to accept it, the debtor shall be released from
2. TRUTH IN LENDING ACT (R.A. 3765)
responsibility by the consignation of the thing or sum due.
Under said article, the debtor in order to be released from his
NOTE: Republic Act No. 3765, aptly entitled “Truth in Lending
obligation must comply with two conditions: tender of payment
Act”, aims to protect the public from lack of awareness of the
and consignation of the sum due. Tender of payment must be
true cost of credit by requiring from the creditor the disclosure of
accompanied or followed by consignation in order that the
full information incident to a credit transaction.
effects of payment may be produced.
 UCPB v. Samuel and Beluso G.R. 159912; Aug. 17, 2007 Transfield Phils. v. Luzon Hydro G.R. 146717; Nov. 22,
The Truth in Lending Act aims to protect the public from lack of 2004 Letters of credit are employed by the parties desiring to
awareness of the true cost of credit by requiring from the enter into commercial transactions, not for the benefit of the
creditor the disclosure of full information incident to a credit issuing bank but mainly for the benefit of the parties to the
transaction. original transactions. With the letter of credit from the issuing
bank, the party who applied for and obtained it may
A creditor is required to supply to the borrower prior to each confidently present the letter of credit to the beneficiary as a
credit transaction a clear statement in writing of the following security to convince the beneficiary to enter into the business
information: the amount of the loan or credit service extended; transaction. On the other hand, the other party to the business
any down payment or trade-in made; individually itemized transaction, i.e., the beneficiary of the letter of credit, can be
charges, fees and other related costs; the total amount to be rest assured of being empowered to call on the letter of credit
financed or amount of loan extended; the interest or finance as a security in case the commercial transaction does not push
charge to be paid, expressed in terms of pesos and centavos; through, or the applicant fails to perform his part of the
and the percentage that the interest or finance charge bears transaction. It is for this reason that the party who is entitled to
to the total amount to be financed. The interest must be the proceeds of the letter of credit is appropriately called
expressed as a simple annual rate. “beneficiary.”

FEATI Bank v. CA G.R. 94209; April 30, 1991 It is a

Silos v. PNB G.R. 181045; July 2, 2014 It is basic that settled rule in commercial transactions involving letters of
there can be no contract in the true sense in the absence of credit that the documents tendered must strictly conform to its
the element of agreement, or of mutual assent of the parties. terms. The tender of documents by the beneficiary (seller)
Similarly, contract changes must be made with the consent of must include all documents required by the letters of credit. A
the contracting parties correspondent bank which departs from what has been
stipulated under the letters of credit, as when it accepts a
3. LETTERS OF CREDIT faulty tender, acts on its own risks and it may not thereafter be
1) Concept/ Parties able to recover from the buyer or the issuing bank, as the case
2) Commercial L/C vs. Standby L/C may be, the money thus paid to the beneficiary.
3) Rule of Strict Compliance
4) Independence Principle BPI v. De Reny Fabric G.R. L-24821; Oct. 16, 1970 Under
5) Fraud Exception Rule the terms of their Commercial Letter of Credit Agreements with
the Bank, the appellants agreed that the Bank shall not be
 responsible for the “existence, character, quality, quantity,
conditions, packing, value, or delivery of the property
purporting to be represented by documents; for any difference
in character, quality, quantity, condition, or value of the
property from that expressed in documents. Having been
positively proven as a fact, the appellants are bound by this
established usage.

4. TRUST RECEIPTS LAW (P.D. 115)

NOTE: Under the trust receipt, the entrustee binds himself or
herself to hold the goods in trust for the entruster, and to sell or
otherwise dispose of them, with the obligation to tum over the
proceeds of the sale to the entruster to the extent of the amount
owed or the terms of the trust receipt

Colinares & Veloso v. CA G.R. 90828; Sept. 5, 2000

Trust Receipts Law, Sec. 4 defines a trust receipt transaction.
The ownership of merchandise in a trust receipts transaction
remains vested in the person who had advanced payment until
he has been paid in full. He acquires a “security interest” in the
goods as holder of a security title for the advances made to the
entrustee. He takes full title to the goods at the very beginning
and continues to hold that title as his indispensable security
until the goods are sold and the vendee is called upon to pay
for them.

Rosario Textile v. Home Bankers Savings G.R. 137232;

6/ 29/ 2005

DBP v. Prudential Bank G.R. 143772; Nov. 22, 2005