Additional Assignment: Negative "Interest Rates"

Read this article on Negative "Interest Rates" and provide a legal analysis. Extra credit for those who submit well reasoned comments.

Course Outline for 2016

Additional Cases for 2014-2015

We will be using the 2013-2014 Outline (see the On-Line Resources) with the following additional cases:

1. Loan III C 1

Spouses Silos v. Philippine National Bank, G.R. No. 181045, July 2, 2014.

Please read all the PNB cases surveyed in this decision.

2. Insolvency IV A

Pryce Corporation v. China Banking Corporation, G.R. No. 172302, February 18, 2014.

Focus only on the second issue.

Course Outline for 2013-2014

The Course Outline for 2013-2014 is available here.  Please note that the cases that are boldfaced are not excerpted in the textbook.

A juxtaposition of the provisions of the FRIA with the FR Rules is available here.  Please be sure to access this file when we discuss the FRIA, as the FR Rules are not discussed in the textbook.

Additional Cases for 2012-2013

1. Loan, Simple Loan, Interest, Forbearance Defined

ESTORES 
v. 
SPOUSES SUPANGAN, G.R. No. 175139, April 18, 2012

2. Pledge, Right to Possession, Right to Payment

CHU v.
 COURT OF APPEALS, FAMILY SAVINGS BANK and/or CAMS TRADING ENTERPRISES, INC., G.R. No. L-78519, September 26, 1989.

3. Real Estate Mortgage, Foreclosure, Extrajudicial Foreclosure, Foreclosure Sale, Bid Price

SPOUSES RABAT 
v.
 PHILIPPINE NATIONAL BANK, G.R. No. 158755, June 18, 2012

4. Real Estate Mortgage, Foreclosure, Extrajudicial Foreclosure, Right to Possession

CHU, et al. v. LACQUI & PHILIPPINE BANK OF COMMUNICATIONS, G.R. No. 169190, February 11, 2010.

5. Liquidation, Treatment of Claims, Secured Creditor Claims

YNGSON 
v. PHILIPPINE NATIONAL BANK, G.R. No. 171132, August 15, 2012.

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.