People v Ong; G.R. No. 93849; 20 Dec 1991; 204 SCRA 942

FACTS:
Accused Ong opened a savings account from which he was allowed to withdraw against uncleared checks and uncollected deposits on several occasions with the approval of his co-accused, the bank’s branch manager and cashier. When the bank presented eleven checks issued and deposited by the accused, they were all dishonored for lack or insufficiency of funds.

ISSUE(S):
Whether or not bank deposits are irregular deposits.

RULING:
YES. They are really loans because they earn interest. All kinds of bank deposits, whether fixed, savings, or current are to be treated [as] loans and are to be covered by the law on loans. Current and savings deposits are loans to a bank because it can use the same.

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Category: Legal Chyme

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