Interest

Read the case of RCBC v. Alfa RTW Manufacturing Corp., et al., G.R. No. 133877, November 14, 2001, as an example of how the various types of interest are computed.

Insolvency: Liquidation

A. General Concepts

Art. 2238 to 2240

R.A. No. 10142, Sec. 2, Sec. 4

B.  Liquidation of Insolvent Individual Debtor

1.  Voluntary Liquidation

R. A. No. 10142, Sec. 103, Sec. 104

2.  Involuntary Liquidation

a.  Acts of Insolvency

Sec. 105

b.  Show Cause Order; Injunction; Default

Sec. 106, Sec. 107

            c.  Absent Individual Debtor

                        Sec. 108

           d.  Custody of Property; Sale of Property

                        Sec. 109, Sec. 110

C.  Liquidation of Insolvent Juridical Debtors

      Sec. 93

1.  Voluntary Liquidation

Sec. 90

      2.  Involuntary Liquidation
D.  Provisions Common to Liquidation of Individual and Juridical Debtors

      Sec. 111

      1.  Liquidation Order

            Sec. 112, Sec. 113

      2.  Liquidator

            a.  General Concepts

                        Sec. 115 to 118, Sec. 29

Sec. 120, Sec. 122

b.  Powers, Duties and Responsibilities

Sec. 119, Sec. 113, Sec. 123, Sec. 126, Sec. 129, Sec. 131, Sec. 132, Sec. 121

3.  Claims

Sec. 4(c)

a.  Determination of Claims

Sec. 112, Sec. 123 to 126

b. Treatment of Claims

1) Secured Creditor Claims

Sec. 113, Sec. 114

Consuelo Metal Corporation, v. Planters Development Bank & Maningas, G.R. No. 152580, June 26, 2008, 555 SCRA 465.

                        2) Unsecured Creditor Claims

                                    Sec. 123, Sec. 113

      4.  Treatment of Contracts

            a.  Termination or Breach of Contracts

                        Sec. 113

            b.  Avoidance Proceedings

                        Sec. 127, Sec. 58, Sec. 128

      5.  Liquidation Plan

             Sec. 129 to 133

      6. Termination of Proceedings

             Sec. 121, Sec. 134, Sec. 135

E. Ancillary Proceedings

      1.  Securities Market Participant

             Sec. 136

2. Banks and Other Financial Institutions Under Rehabilitation Receivership Pursuant to a State-funded or State-mandated Insurance System.

Sec. 137, Sec. 138

3.  Cross-Border Insolvency Proceedings

Sec. 139 to 142 

Insolvency: Rehabilitation

A. General Concepts

R.A. No. 10142, Sec. 2

B. Court-Supervised Rehabilitation

1.  Voluntary Proceedings

Sec. 12

2.  Involuntary Proceedings

Sec. 13, Sec. 14

3.  Provisions Common to Voluntary and Involuntary Rehabilitation Proceedings

a.  Commencement Order

Sec. 15 to 17, Sec. 19, Sec. 21

            b.  Stay or Suspension Order

                        Sec. 16, Sec. 20

1) General Concepts

Rizal Commercial Banking Corporation v. Intermediate Appellate Court, G.R. No. 74851, December 9, 1999, 320 SCRA 279.

Sobrejuanite v. ASB Development Corporation, G.R. No. 165675, September 30, 2005, 471 SCRA 763.

2) Exceptions to Stay or Suspension Order

Sec. 18, Sec. 16

Metropolitan Waterworks & Sewerage System v. Daway and Maynilad Water Services, Inc., G.R. No. 160732, June 21, 2004, 432 SCRA 559.

Panlilio, et al. v. Regional Trial Court, Branch 51, City of Manila, G.R. No. 173846, February 2, 2011, 641 SCRA 438.

c.  Subsequent Actions

Sec. 22, Sec. 24 to 27

d.  Rehabilitation Receiver

1) General Concepts

Sec. 28 to 30, Sec. 32 to 35, Sec. 40

2) Powers, Duties and Responsibilities

Sec. 47, Sec. 24, Sec. 31, Sec. 39, Sec. 41

e.  Creditors’ Committees

Sec. 42, Sec. 43, Sec. 8, Sec. 9

f.  Management Committee

Sec. 47, Sec. 36 to 38

g.  Claims

Sec. 4(c) 

1) Determination of Claims

Sec. 16, Sec. 44 to 46

2) Treatment of Claims

a) Secured Creditor Claims

Sec. 60, Sec. 61

b) Employee Claims

Sec. 56, Sec. 16

c) Excluded Claims

Sec. 23

h.  Treatment of Assets

Sec. 47

1)  Unencumbered Assets

Sec. 48, Sec. 49, Sec. 52

2)  Encumbered Assets

Sec. 17, Sec. 50, Sec. 51, Sec. 53

i.  Treatment of Contracts

1)  Confirmation or Termination of Contracts

Sec. 57, Sec. 16

2)  Avoidance Proceedings

Sec. 58, Sec. 59

j. Rehabilitation Plan

1) General Concepts

Sec. 62, Sec. 54, Sec. 55

2) Cram Down Effect

Sec. 63 to 73

Bank of the Philippine Islands v. Securities & Exchange Commission, et al., G.R. No. 164641, December 20, 2007, 541 SCRA 294.

k.  Termination of Proceedings

Sec. 74, Sec. 75

l.  Conversion to Liquidation Proceedings

Sec. 92

C.  Pre-negotiated Rehabilitation

Sec. 76 to 82, Sec. 92

D.  Out-of-Court Rehabilitation

Sec. 83, Sec. 84.

1. General Concepts

2.  Benefits of Out-of-Court Rehabilitation

Sec. 85 to 89 

Insolvency: Suspension of Payments

A.  General Concepts

R.A. No. 10142, Sec. 2, Sec. 94. Sec. 95

1.  Automatic Stay

Sec. 96

2.  Suspension Order

Sec. 96

3.  Injunction Against Debtor

Sec. 95

B.  Commissioner

Sec. 95, Sec. 97

C.  Creditors’ Meeting

Sec. 97, Sec. 99, Sec. 100

D.  Proposed Agreement

Sec. 94, Sec. 101, Sec. 102

E.  Treatment of Claims

Sec. 96, Sec. 98, Sec. 101

1.  Secured Creditor Claims

      2.  Exempt Claims

      3.  Excluded Claims

Insolvency

The Concept of Insolvency

Art. 2236, Art. 2237

R. A. No. 10142, Sec. 2, Sec. 4, Sec. 146 to Sec. 148

A.  Nature of Insolvency Proceedings

R. A. No. 10142, Sec. 3, Sec. 7, Sec. 6

B.  Civil and Criminal Liability in Insolvency Proceedings

R. A. No. 10142, Sec. 10. Sec. 145

Concurrence & Preference of Credits

A.  General Concepts

R. A. No. 10142, Sec. 62, Sec. 133

B. Classification of Credits

1.  Special Preferred Credits

Art. 2241, Art. 2242

R.A. No. 10142, Sec. 136

Art. 2243, Art. 2246 to 2250

De Barreto, et al. v. Villanueva, et al., G.R. No. L-14938, January 28, 1961, 1 SCRA 288, Resolution on Motion to Consider, December 29, 1962, 6 SCRA 929.

Development Bank of the Philippines v. Court of Appeals, G.R. No. 126200, August 16, 2001, 363 SCRA 307.

J.L. Bernardo Construction v. Court of Appeals, G.R. No. 105827, January 31, 2000, 324 SCRA 24.

2.  Ordinary Preferred Credits

Art. 2244

P. D. No. 442, Art. 110

R. A. No. 10142, Sec. 133

Art. 2251

3.  Common Credits

Art. 2245, Art. 2251

Cordova v. Reyes Daway Lim Bernardo Lindo Rosales Law Offices, et. al, G.R. No. 146555, July 3, 2007, 526 SCRA 300.

Security Transactions: Antichresis

A. General Concepts

Art. 2132, Art. 2133, Art. 2135, Art. 2138, Art. 2139, Art. 2085, Art. 2089, Art. 2090,

Art. 2091

B.  Form of Antichresis

Art. 2134

C.  Right of Retention

Art. 2136

D. Foreclosure of Antichresis

Art. 2137

Diego v. Fernando, G.R. No. L-15128, August 25, 1960, 109 Phil 143.

Security Transactions: Real Estate Mortgage

A. General Concepts

      Art. 2085, 2087

B.  Form of Real Estate Mortgage

Art. 2125, Art. 2131

C.  Obligations Secured

       Prudential Bank v. Alviar & Alviar, G.R. No. 150197, July 28, 2005, 464 SCRA 353.

D.  Object of Real Estate Mortgage

Art. 2124, 415

      1. After Acquired Properties

People’s Bank & Trust Company & Atlantic Gulf and Pacific Co. of Manila v. Dahican Lumber Company, et al., G.R. No. L-17500, May 16, 1967, 20 SCRA 84.

      2. Effect and Extent

            Art. 2126, Art. 2127, Art. 2129

E.  Right to Alienate Real Estate Mortgage Credit

Art. 2128, Art. 1625, Art. 1627

F.  Right to Alienate Collateral

Art. 2085, Art. 2130

G. Foreclosure of Real Estate Mortgage

      1. Judicial Foreclosure

            a. Complaint for Foreclosure

                        Rules of Court, Rule 68, Sec. 1

b. Judgment on Foreclosure

Rules of Court, Rule 68, Sec. 2

Korea Exchange Bank v. Filkor Business Integrated, Inc., et al., G.R. No. 138292, April 10, 2002, 380 SCRA 381.

c. Equity of Redemption

Rules of Court, Rule 68, Sec. 2

d. Foreclosure Sale

Rules of Court, Rule 68, Sec. 3 to 5, Sec. 7, Sec. 8

Rules of Court, Rule 39, Sec. 31, Sec. 32, Sec. 34

e.  Right of Redemption

Huerta Alba Resort, Inc. v. Court of Appeals, G.R. No. 128567, September 1, 2000, 339 SCRA 534

f. Right to Surplus or Deficiency

Rules of Court, Rule 68, Sec. 4, Sec. 6

Rules of Court, Rule 86, Sec. 7

      2. Extrajudicial Foreclosure

            a.  Special Powers

                       Act No. 3135, Sec. 1

            b.  Foreclosure Sale

Act No. 3135, Sec. 2

A.M. No. 99-10-05-0, as amended

1) Requirement of Notice

Grand Farms, Inc. & Philippine Shares Corporation v. Court of Appeals, et al., G.R. No. 91779, February 7, 1991, 193 SCRA 748.

2) Conduct of Sale

Act No. 3135, Sec. 4, Sec. 5
A.M. No. 99-10-05-0

c.  Right of Redemption

Act No. 3135, Sec. 6

A.M. No. 99-10-05-0

1)  Who may Redeem

Act No. 3135, Sec. 6

Rules of Court, Rule 39, Sec. 27

Medida, et al. v.
Court of Appeals, et al., G.R. No. 98334, May 8, 1992, 208 SCRA 887

2) How to Redeem

Rules of Court, Rule 39, Sec. 28, Sec. 29, Sec. 30, Sec. 33

d.  Right to Deficiency

Rules of Court, Rule 86, Sec. 7

e.  Right to Surplus

Suico v. Philippine National Bank, G.R. No. 170215, August 28, 2007, 531 SCRA 514.

f.  Right to Possession

1) During Redemption Period

Act No. 3135, Sec. 7 to 9

2) After Consolidation of Ownership

Rules of Court, Rule 39, Sec. 33

3) When Held by a Third Party

Rules of Court, Rule 39, Sec. 33, Sec. 16

BPI Family Savings Bank, Inc. v. Golden Power Diesel Sales Center, Inc., G.R. No. 176019, January 12, 2011, 639 SCRA 405.

Security Transactions: Chattel Mortgage

A. General Concepts

Art. 2085, Art. 2087, Art. 2140, Art. 2141

PCI Leasing & Finance, Inc. v. Trojan Metal Industries Inc., et al., G.R. No. 176381, December 15, 2010, 638 SCRA 615.

B.  Form of Chattel Mortgage

      Act No. 1508, Sec. 4 to 6

C.  Obligations Secured

Act No. 1508, Sec. 5

ACME Shoe, Rubber & Plastic Corporation v. Court of Appeals, G.R. No. 103576, August 22, 1996, 260 SCRA 714.

D.  Object of Chattel Mortgage

      Art. 2124, Art. 416, Art. 417

      Act No. 1508, Sec. 2

Makati Leasing & Finance Corporation v. Wearever Textile Mills, Inc. & Court of Appeals, G.R. No. L-58469, May 16, 1983, 122 SCRA 296.

      1.  Reasonable Description Rule

            Act No. 1508, Sec. 7

      2.  After Acquired Properties

           Act No. 1508, Sec. 7

E. Ownership of Collateral

Dy v. Court of Appeals, G.R. No. 92989, July 8, 1991, 198 SCRA 826.

F.  Foreclosure of Chattel Mortgage

      Act No. 1508, Sec. 8, Sec. 14

      A.M. No. 99-10-05-0

      1.  Equity of Redemption

             Act No. 1508, Sec. 13, Sec. 14

      2.  Right of Redemption

Rizal Commercial Banking Corporation v. Royal Cargo Corporation, G.R. No. 179756, October 2, 2009, 602 SCRA 545.

      3.  Right to Possession

Servicewide Specialists, Inc. v. Court of Appeals, G.R. No. 110048, November 19, 1999, 318 SCRA 493.

      4.  Right to Surplus or Deficiency

             Act No. 1508, Sec. 14

PAMECA Wood Treatment Plant, Inc. v. Court of Appeals, G.R. No. 106435, July 14, 1999, 310 SCRA 281.

Security Transactions: Pledge

A. General Concepts

Art. 2085, Art. 2087, Art. 2123

B. Form of Pledge

      Art. 2096

C.  Obligations Secured

D.  Object of Pledge

      Art. 2094, Art. 2095, Art. 416, Art. 417

E. Ownership of Collateral

      Art. 2103, Art. 2102, Art. 2101, Art. 1951, Art. 2108, Art. 2112, Art. 2097

Estate of Litton v. Mendoza & Court of Appeals, G.R. No. L-49120, June 30, 1988, 163 SCRA 246.

F.  Rights of Third Party Pledgor

     Art. 2120, Art. 2117, Art. 2066 to 2070, Art. 2079 to 2081

G.  Right to Possession

     Art. 2093, Art. 2110

     1.  Right of Retention

            Art. 2098, Art. 2109, Art. 2099, Art. 2100, Art. 2104, Art. 2106

     2.  Right to Payment

            Art. 2102, Art. 2118

Manila Banking Corporation
v. Teodoro, Jr. and Teodoro, G.R. No. 53955, January 13, 1989, 169 SCRA 95.

Citibank, N.A. & Investors Finance Corporation v. Sabeniano, G.R. No. 156132, October 12, 2006, 504 SCRA 378.

H. Return of Collateral

Art. 2105, Art. 2107, Art. 2108, Art. 2110, Art. 2111

I. Foreclosure of Pledge

Art. 2112, Art. 2119

1.  Who May Bid

Art. 2113, Art. 2114

      2.  Effect of Notarial Sale

            a.  Extinction of Principal Obligation

                        Art. 2115, Art. 2116

            b.  Right of Redemption

Paray & Espeleta v. Rodriguez, et al., G.R. No. 132287, January 24, 2006, 479 SCRA 571.

c.  Right to Surplus or Deficiency

Art. 2115

J. Legal Pledges

      Art. 2121

      1.  Examples of Legal Pledges

           Art. 1944, Art. 1951, Art. 1994, Art. 2004, Art. 546, Art. 1731

      2.  Foreclosure of Legal Pledge

           Art. 2122, Art. 2121

Security Transactions: Pledge and Mortgage

A. General Concepts

      Art. 2085, Art. 2087

B. Obligations Secured

      Art. 2086, Art. 2052, Art. 209

C. Contract to Pledge or to Mortgage

      Art. 2092

D.  Remedies of Pledgee and Mortgagee

E. Indivisibility of a Pledge or Mortgage

      Art. 2089, Art. 2090

F. Pactum Commissorium

      Art. 2087, Art. 2088

      1.  Elements

      2.  Effect on Pledge or Mortgage

Development Bank of the Philippines v. Court of Appeals, G.R. No.118342, January 5, 1998, 284 SCRA 14.

Bustamante v. Rosel, G. R. No. 126800, November 29, 1999, 319 SCRA 413.

Ong v. Roban Lending Corporation, G.R. No. 172592, July 9, 2008, 557 SCRA 516.

G. Equitable Mortgage

      Art. 1602 to 1605

Security Transactions: Surety

A. General Concepts

Art. 2047, Art. 1211, Art. 1216,Art. 2082 to 2084

B.  Form of Surety

Art. 1403

C.  Obligations Secured

Art. 2053

Security Bank & Trust Company v. Cuenca, G.R. No. 138544. October 3, 2000, 341 SCRA 781.

D. Distinguished from Standby Letter of Credit

E.  Distinguished from Guaranty

Art. 2047

Palmares v. Court of Appeals & M.B. Lending Corporation, G.R. No. 126490, March 31, 1998, 288 SCRA 422.

E. Zobel, Inc. v. Court of Appeals, G.R. No. 113931, May 6, 1998, 290 SCRA 1.

International Finance Corporation v. Imperial Textile Mills, Inc., G.R. No. 160324, November 15, 2005, 475 SCRA 149.

Philippine Blooming Mills, Inc. & Ching, v. Court of Appeals, G.R. No. 142381, October 15, 2003, 413 SCRA 445.

F. Distinguished from Joint and Solidary Obligations

Art. 2047, Art. 2066, Art. 2067, Art. 1217

Escano & Silos v. Ortigas, Jr., G. R. No.  151953, June 29, 2007, 526 SCRA 26.