Scribd Logo
Upload

Welcome to Scribd!

  • 15 views

    6enforcement of Liability

    Uploaded by

    Ramos Gabe
    Associated Bank should bear the loss resulting from checks deposited into a personal account after being forged by an administrative officer and cashier of the hospital. As the collecting bank, Associated Bank is accountable for checks deposited by its customers and is duty-bound to warrant instruments as genuine, valid, and subsisting according to the Negotiable Instruments Law. While PNB initially debited the amounts from the province's account, Associated Bank guaranteed the prior endorsements and is therefore responsible for reimbursing PNB.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    6enforcement of Liability

    Uploaded by

    Ramos Gabe
    15 views17 pages
    Associated Bank should bear the loss resulting from checks deposited into a personal account after being forged by an administrative officer and cashier of the hospital. As the collecting bank, Associated Bank is accountable for checks deposited by its customers and is duty-bound to warrant instruments as genuine, valid, and subsisting according to the Negotiable Instruments Law. While PNB initially debited the amounts from the province's account, Associated Bank guaranteed the prior endorsements and is therefore responsible for reimbursing PNB.

    Original Description:

    nego

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Associated Bank should bear the loss resulting from checks deposited into a personal account after being forged by an administrative officer and cashier of the hospital. As the collecting bank, Associated Bank is accountable for checks deposited by its customers and is duty-bound to warrant instruments as genuine, valid, and subsisting according to the Negotiable Instruments Law. While PNB initially debited the amounts from the province's account, Associated Bank guaranteed the prior endorsements and is therefore responsible for reimbursing PNB.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views17 pages

    6enforcement of Liability

    Uploaded by

    Ramos Gabe
    Associated Bank should bear the loss resulting from checks deposited into a personal account after being forged by an administrative officer and cashier of the hospital. As the collecting bank, Associated Bank is accountable for checks deposited by its customers and is duty-bound to warrant instruments as genuine, valid, and subsisting according to the Negotiable Instruments Law. While PNB initially debited the amounts from the province's account, Associated Bank guaranteed the prior endorsements and is therefore responsible for reimbursing PNB.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 17

    VII.

    Enforcement of Liability
    Crisologo-Jose vs. CA, Sept. 15, 1989

    Salas vs. CA, Jan. 22, 1990

    PNB vs. CA, Jan. 22, 1990

    Associated Bank vs. CA, Jan. 31, 1996

    Facts: The Province of Tarlac maintains a current account with PNB. Checks were
    issued and received by the hospitals administrative officer and cashier, Pangilinan.
    Panilinan, through the help of Associated Bank but after forging the signature of the
    hospitals chief was able to deposit the checks in his personal account. The province
    discovered that the hospital did not receive several allotted checks, and sought the
    restoration of the debited amounts from PNB. In turn, PNB demanded
    reimbursement from Associated Bank. Both banks resisted payment. Hence, this
    present action.
    Issue: Whether or not Associated Bank should bear the loss.
    Held: Associated Bank, and not PNB, is the one duty-bound to warrant the
    instrument as genuine, valid and subsisting at the time of indorsement pursuant to
    Section 66 of the NIL. The stamp guaranteeing prior indorsement is not an empty
    rubric; the collecting bank is held accountable for checks deposited by its
    customers.

    Great Eastern vs. Hong Kong Shanghai Bank, Aug. 23, 1922

    Republic vs. Ebrada, July 31, 1975

    PNB vs. Quimpo, March 14, 1988

    Gempesaw vs. CA, Feb. 9, 1993

    PCI Bank vs. CA, 350 SCRA 446

    Papa vs. AU Valencia, 284 SCRA 643

    Far East Realty vs. Cam, 166 SCRA 256 (1988)

    McGuire vs Province of Samar, GR L-8155, Oct. 23, 1956

    Asia Banking vs. Javier, GR 19051, April 1923

    Gullas vs. PNB, GR 43191, Nov. 13, 1935

    Nyco Sales vs. BA Finance, 200 SCRA 637, 1991

    Great Asian Sales vs. CA, GR 105774, April 25, 2002

    Luis Wong vs CA, GR 117857, Feb. 2, 2001

    You might also like