Credit Transactions

FACTS: Respondent court ordered petitioner province to remit the lease rentals of a real property under litigation. The said amount was to be deposited in the name and/or account of the court to be held in escrow for the person or persons, natural or juridical, who may be finally adjudged lawfully entitled thereto. ISSUE(S): Whether or not a trial court may issue escrow orders. HELD: YES. The court’s authority proceeds from its jurisdiction and power to decide, adjudicate and resolve the issues raised in the principal suit. The deposit of the rentals in escrow with the bank, in the name…

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FACTS: Respondents’ representative deposited a total of ten checks with petitioner bank where respondents maintain an account. It was later found that one of the checks was not posted to respondents’ passbook. The duplicate deposit slip listing the checks deposited by their representative but it did not include the missing check. Petitioners subsequently learned that the check had cleared after it was inexplicably deposited in a different bank. The spouses filed a case for collection of a sum of money after the bank refused to pay them the amount of the check. ISSUE(S): Whether or not petitioner bank was negligent.…

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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. HELD: 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…

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