Posted by lexforiphilippines on September 14, 2010
Is a stipulation in bank-loan documents giving the bank a right to set-off or apply the borrower’s loan (including interest) against his bank deposits, valid?
Yes. In Metropolitan Bank and Trust Company vs. Mariñas (G.R. No. 179105; 26 July 2010), the Supreme Court sustained the bank’s authority to make deductions from a borrower’s deposits and apply them to his loans and stipulated interest, pursuant to the Deeds of Assignment with Power of Attorney executed by the borrower, giving the bank such authority. The Court cited Article 1159 of the Civil Code which states that “obligations arising from contract have the force of law between the contracting parties and should be complied with in good faith.” Not being contrary to law, such agreement between the bank and the borrower must be respected and given the force of law between them, said the Court. The Court, however, ruled that, considering the total amounts of said borrower’s deposits inclusive of interest earned vis-à-vis his total obligations, the total depletion of his accounts was unwarranted. The bank was ordered to account for whatever excess deductions made on the borrower’s accounts and to return them with earned interest. The Court stressed that “(a)s a business affected with public interest, and because of the nature of their functions, banks are under obligation to treat the accounts of their depositors with meticulous care, always having in mind the fiduciary nature of their relationship.”
To know more about said case and the Court’s ruling, click on Digested Cases under Tools.
Posted in Banking Laws, Cases, Civil Law, Corporate Law, Law School | Tagged: banks, loans, right of banks to set-off, set-off, Special Power of Attorney | 1 Comment »
Posted by lexforiphilippines on September 6, 2010
If parties to a joint venture agreed on how the profits from the joint venture would be divided, but did not specify how losses would be split, how should the losses be distributed?
A joint venture, being a form of partnership, is to be governed by the laws on partnership. Under the laws on partnership, particularly Article 1797 of the Civil Code, the losses and profits shall be distributed in accordance with the partnership agreement; if only the share of each partner in the profits has been agreed upon, the share of each in the losses shall be in the same proportion. So said the Supreme Court in the consolidated cases of Marsman Drysdale Land, Inc. vs. Philippine Geoanalytics, Inc. and Gotesco Properties, Inc. (G.R. No. 183374; 29 June 2010) and Gotesco Properties, Inc. vs. Marsman Drysdale Land, Inc. and Philippine Geoanalytics, Inc. (G.R. No. 183376; 29 June 2010).
For a digest of said cases, click on Digested Cases under Tools.
Posted in Cases, Civil Law, Corporate Law, Law School, Notes | Tagged: joint ventures, partnership | Leave a Comment »
Posted by lexforiphilippines on June 22, 2010
On 13 May 2010, the Securities and Exchange Commission approved the Implementing Rules and Regulations of Republic Act No. 9856, otherwise known as the Real Estate Investment Trust Act of 2009.
Click on the Tools tab for a copy of the Implementing Rules of the Real Estate Investment Trust Act of 2009.
Posted in Corporate Law, Laws and Implementing Rules, Taxation, Uncategorized | Tagged: corporate law, Taxation | Leave a Comment »
Posted by lexforiphilippines on February 24, 2010
To protect the public against incompetent, irresponsible and unscrupulous real estate practitioners, Republic Act No. 9646, otherwise known as the “Real Estate Service Act of the Philippines” was enacted by Congress and signed into law on 29 June 2009. The law created the Professional Regulatory Board for Real Estate Service (“the Board”) which, under the supervision of the Professional Regulation Commission (PRC), will regulate the practice of real estate service in the Philippines. Under the new law, real estate consultants, real estate appraisers and real estate brokers must take and pass a Licensure Examination (with some exceptions) and obtain a Certificate of Registration from the Board. The Licensure Examination will be given by the Board at least once every year on such dates as the PRC may designate. The law also requires that real estate salespersons must be accredited by the Board.
(For the salient features of Republic Act No. 9646, please click on Laws under Tools.)
Posted in Corporate Law, Law School, Laws and Implementing Rules, Uncategorized | Tagged: real estate law | Leave a Comment »
Posted by lexforiphilippines on January 21, 2010
Republic Act No. 9856 “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes” (REITS law)
On December 17, 2009, Republic Act No. 9856, more popularly known as the REITS law lapsed into law without the signature of the President. The law seeks to promote the development of the capital market, democratize wealth by broadening the participation of Filipinos in the ownership of real estate, use the capital market as an instrument to help finance and develop infrastructure projects and protect the investing public by providing an enabling regulatory framework.
The law grants several incentives, including tax incentives, to those planning to incorporate as a REIT. For a quick view of the law, click the TOOLS bar then proceed to Laws and Implementing Regulations.
The Bangko Sentral ng Pilipinas and the Department of Finance, in consultation with other stakeholders such as the Philippine Stock Exchange and the real estate industry, is mandated to promulgate the implementing rules and regulations within ninety (90) days from the effectivity of the Act.
Should you want a soft copy of the law, email us at firstname.lastname@example.org
Posted in Corporate Law, Law School, Laws and Implementing Rules, Taxation | 2 Comments »