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    Far East Bank vs. Tentmakers

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    The Supreme Court ruled in favor of Tentmakers Group, Inc., Gregoria Pilares Santos, and Rhoel P. Santos in their dispute with Far East Bank and Trust Company (now Bank of the Philippine Islands). The bank had filed a complaint seeking payment of three promissory notes signed by Gregoria and Rhoel totaling PHP 887,613.37. However, the Supreme Court found that the bank failed to show that Tentmakers Group or Gregoria and Rhoel received the loan proceeds. Additionally, the bank did not follow Bank of the Philippines regulations for granting unsecured loans by failing to properly ascertain the borrowers' financial capacity and requiring the necessary documents like income tax returns and certified financial statements. Therefore

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    Far East Bank vs. Tentmakers

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    91 views2 pages
    The Supreme Court ruled in favor of Tentmakers Group, Inc., Gregoria Pilares Santos, and Rhoel P. Santos in their dispute with Far East Bank and Trust Company (now Bank of the Philippine Islands). The bank had filed a complaint seeking payment of three promissory notes signed by Gregoria and Rhoel totaling PHP 887,613.37. However, the Supreme Court found that the bank failed to show that Tentmakers Group or Gregoria and Rhoel received the loan proceeds. Additionally, the bank did not follow Bank of the Philippines regulations for granting unsecured loans by failing to properly ascertain the borrowers' financial capacity and requiring the necessary documents like income tax returns and certified financial statements. Therefore

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    The Supreme Court ruled in favor of Tentmakers Group, Inc., Gregoria Pilares Santos, and Rhoel P. Santos in their dispute with Far East Bank and Trust Company (now Bank of the Philippine Islands). The bank had filed a complaint seeking payment of three promissory notes signed by Gregoria and Rhoel totaling PHP 887,613.37. However, the Supreme Court found that the bank failed to show that Tentmakers Group or Gregoria and Rhoel received the loan proceeds. Additionally, the bank did not follow Bank of the Philippines regulations for granting unsecured loans by failing to properly ascertain the borrowers' financial capacity and requiring the necessary documents like income tax returns and certified financial statements. Therefore

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    91 views2 pages

    Far East Bank vs. Tentmakers

    Uploaded by

    xx_stripped52
    The Supreme Court ruled in favor of Tentmakers Group, Inc., Gregoria Pilares Santos, and Rhoel P. Santos in their dispute with Far East Bank and Trust Company (now Bank of the Philippine Islands). The bank had filed a complaint seeking payment of three promissory notes signed by Gregoria and Rhoel totaling PHP 887,613.37. However, the Supreme Court found that the bank failed to show that Tentmakers Group or Gregoria and Rhoel received the loan proceeds. Additionally, the bank did not follow Bank of the Philippines regulations for granting unsecured loans by failing to properly ascertain the borrowers' financial capacity and requiring the necessary documents like income tax returns and certified financial statements. Therefore

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    G.R. No.

    171050

    July 4, 2012

    FAR EAST BANK AND TRUST COMPANY (now Bank of the Philippine Islands), Petitioner,
    vs.
    TENTMAKERS GROUP, INC., GREGORIA PILARES SANTOS and RHOEL P. SANTOS,
    Respondents.
    DECISION
    MENDOZA, J.:
    FACTS:
    The signatures of respondents, Gregoria Pilares Santos (President) and Rhoel P.
    Santos(Treasurer) of Tentmakers Group Inc. (TGI) appeared on 3 promissory notes for loans
    contractedwith the petitioner.
    Petitioner, after a futile demand, filed a complaint before the RTC for the payment of
    theprincipal of the promissory notes which amounted to a total of Php 887,613.37 inclusive of interest,
    penalty charges and attorneys fees.
    The RTC rendered a decision in favour of the petitioner. However, this was reversed by theCA
    on the ground, among others, that there were no collaterals to ensure the payment of the loansand, in
    the conferment of such unsecured loans, the bank manager also failed to comply with theguidelines set
    forth under the Manual fo Regulation for Banks when it approved and released thesubject loans to
    Gregoria and Rhoel.
    Petitioner contends that the evidence on record showed its compliance with the bankingrules
    and regulations through board resolutions issued by TGI fully authorizing Gregoria and Rhoelto
    transact business with it.
    ISSUE:
    Whether or not petitioner did not comply with the guidelines under the Manual of Regulation
    for Banks.
    HELD:
    Decision:Far East Bank and Trust Company failed to show a document evidencing that
    Gregoria andRhoel or TGI received the proceeds of the 3 promissory notes. Moreover, petitioner
    violated therules and regulations of the BSP by its failure to strictly follow the guidelines in the
    conferment of unsecured loans set forth under the Manual or Regulations for Banks.
    Section X319.1 of the Manual of Regulation for Banks states that before granting credit
    accommodations against personal security, banks must exercise proper caution by ascertaining thatthe
    borrowers, co-makers, endorsers, sureties and/or guarantors possess good credit standing and are
    financially capable of fulfilling their commitments to the bank. To show proof of financial capacity of
    borrower, Section X319.2 provides that oth er than the personal information sheet about the borrower,
    banks shall require that an application for a credit accommodation againstpersonal security be
    accompanied by a copy of the latest income tax returns of the borrower and hisco-maker duly stamped

    as received by the BIR and if the credit accommodation exceeds Php 500,000.00, a copy of the
    borrowers balance sheet duly certified by an Independent Certified Public Accountant and in case he is
    engaged in business, also a copy of the profit and loss statement duly certified by a CPA.

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