I. Letters of Credit

A. Definition/concept

B. Governing laws

C. Nature of letter of credit

D. Parties to a letter of credit           

1. Rights and obligations of parties

E. Basic principles of letter of credit

1. Doctrine of independence2. Fraud exception principle3. Doctrine of strict compliance

            Cases:

1. Metropolitan Waterworks and Sewerage System v. Hon. Reynaldo B. Daway and Maynilad Water Services, Inc., G.R. No. 160732, June 21, 2004

2. Mico Metals Corp. v. Court of Appeals and Philippine Bank of Communications, G.R. No. 117914, Feb. 1, 2002

3. Transfield Philippines, Inc. v. Luzon Hydro Corporation, Australia and New Zealand Banking Group Limited and Security Bank Corporation, G.R. NO. 146717, Nov. 22, 2004

II. Warehouse Receipts Law (Act No. 2137)

A. Nature and functions of a warehouse receipt

       Definition and nature of Warehouse Receipts       Purpose of the Law       Who may issue Warehouse Receipts

       Form and content of Warehouse Receipts       Effect of omission of any of the essential terms       Terms that cannot be included

1. To whom delivered

2. Kinds

3. Distinctions between a negotiable instrument and a negotiable warehouse receipt

4. Rights of a holder of a negotiable warehouse receipt as against a transferee of a nonnegotiable warehouse receipt

B. Duties of a warehouseman

       Who is a warehouseman       Principal obligations of a warehouseman       Lawful excuses to deliver goods       In case of misdelivery       Altered receipts       Liability of warehouseman

C. Warehouseman’s lien

       Extent       Loss and waiver of lien       Enforcement

Other topics:

D.  Negotiation and transfer of receipts

E.  Criminal offenses 

III. Trust Receipts Law (Pres. Decree No. 115)

Purpose of the Law            Trust Receipts, Definition            Trust Receipt Transaction, Definition            Parties to a Trust Receipt

            Importance of Trust Receipts            Difference of Trust Receipts and Letters Of Credit

A. Definition/concept of a trust receipt transaction1. Loan/security feature

2. Ownership of the goods, documents and instruments under a trust receipt

B. Rights of the entruster

1. Validity of the security interest as against the creditors of the entrustee/innocent purchasers for value

C. Obligations and liability of the entrustee

1. Payment/delivery of proceeds of sale or disposition of goods, documents or instruments

2. Return of goods, documents or instruments in case of sale3. Liability for loss of goods, documents or instruments4. Penal sanction if offender is a corporation

D. Remedies available

            Cases:

1. Development Bank of the Philippines v. Prudential Bank, G.R. No. 143772, Nov. 22, 20052. Landl & Company (Phil.) Inc., et al v. Metropolitan Bank, G.R. No. 159622, July 30, 2004

3. Anthony L. Ng v. People of the Philippines, G.R. NO. 173905, April 23, 2010

IV. The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and 2141 of the Civil Code)

Preliminaries:Definition of Chattel Mortgage            Characteristics            Distinguished for Pledge           

A. Essential requisites

B. Formal requisites

C. Registration, when and where

E. After-acquired property

F. After-incurred obligation

G. Right of junior mortgagee

H. Foreclosure procedure           

I. Redemption

J. Claim for deficiency

1. General rule2. Exception3. Article 1484

Cases:

1.    Union Bank v. Juniat, et al., G.R. No. 171569, August 1, 20112.    Acme Shoe Rubber & Plastic Corp and Chua Pac v. Hon. Court of Appeals, Producers

Bank of the Philippines and Regional Sheriff of Caloocan City, G.R. No. 103576, August 22, 1996

3.    Servicewide Specialists, Inc. v. Court of Appeals, Hilda Tee, and Alberto Villarica, G.R. No. 11408, November 19, 1999

V. Real Estate Mortgage Law (Act 3135, as amended by R.A. 4118)

Preliminaries:Arts. 2124-2131 Civil CodeDefinition of Real Estate Mortgage            Characteristics of REM            Essential Requisites            Registration Requirement

A. Coverage

B. Remedies available to mortgagee upon default of the mortgagor

C. Need for special power of attorney

D. Authority to foreclose extrajudicially

E. Procedure

1) Where to file2) Where to sell3) Posting requirement4) Publication requirement

a. Sufficiency of newspaper publicationb. Need for republication in case of postponement

c. Personal notice to the mortgagor when and when not needed

F. Possession by purchaser of foreclosed property

G. Remedy of debtor if foreclosure is not proper

H. Redemption

a. Who may redeemb. Amount of redemption pricec. Period for redemptiond. Effect of pendency of action for annulment of sale

I. Writ of possession

a. Ministerial duty of the courtb. Enforcement against third partiesc. Pendency of action for annulment of sale

J. Annulment of sale   Cases:

1.    Fortune Motors Phils. v. Metropolitan Bank and Trust Company, G.R. No. 115068, November 28, 1996

2.    GC Dalton Industries Inc. v. Equitable PCI Bank, G.R. No. 171169, August 24, 20093.    Development Bank of the Philippines v. Environmental Aquatics Inc., G.R. No.

174329, October 20, 20104.    Sps. Victor and Grace Ong v. Court of Appeals, G.R. No. 121494, June 8, 20005.    Sps. Basilio and Norma Hilaga v. Rural Bank of Isulan, G.R. No. 179781, April 7, 2010

VI. Truth in Lending Act (R.A. 3765)

            Preliminaries:             Rep. Act No. 3765                                    Central Bank Circular No. 158 (Oct. 29, 1963)

A. Purpose

B. Obligation of creditors to person to whom credit is extended

C. Covered and excluded transactions

D. Consequences of non-compliance with obligation

            Cases:

1.    Development Bank of the Philippines v. Felipe Arcilla, G.R. No. 161397, 161426, June 30, 2005

2.    United Coconut Planters Bank v. Sps. Beluso, G.R. No. 159912, August 17, 2007

VII. Anti-money Laundering Law (R.A. 9160, as amended by R.A. 9194)

A. Policy of the law

B. Covered institutions

C. Obligations of covered institutions

D. Covered transactions

E. Suspicious transactions

F. When is money laundering committed

G. Unlawful activities or predicate crimes

H. Anti-money laundering council

             I. Functions

J. Freezing of monetary instrument or property

K. Authority to inquire into bank deposits

Cases:

1.    Republic of the Philippines v. Hon. Antonio Eugenio, Jr., G.R. No. 174629, February 14, 2008

2.    Republic of the Philippines v. Glasgow Credit and Collection Services Inc., G.R. No. 170281, January 18, 2008

VIII. Foreign Investments Act (R.A. 7042)

A. Policy of the law

B. Definition of terms

a) Foreign investmentb) “Doing business” in the Philippinesc) Export enterprised) Domestic market enterprise

C. Registration of investments of non-Philippine nationals

D. Foreign investments in export enterprises

E. Foreign investments in domestic market enterprises

F. Foreign investment negative list

Cases:1.     Alfred Hahn v. Court of Appeals, G.R. No. 113704, January 22, 19972.     Cargrill Inc. v. Intra Strata Assurance Corp., G.R. No. 168266, March 15, 2010 3.     Agiagilent Technologies Singapore v. Integrated Silicon Technology, G.R. No. 154618, April 14,

2004 

IX. Securities Regulations Code (R.A. 8799)

A. State policy (purpose)

            Case:           

1. Abacus Securities Corp. v. Ruben U. Ampil, G.R. NO. 160016, February 27, 2006

B. Powers and functions of the SEC

1. Regulatory2. Adjudicative

                        Case:

1. CEMCO Holdings, Inc. v. National Life Insurance Company ofthe Philippines, Inc., G.R. No. 171815, August 7, 2005           

C. Securities required to be registered

1. Exempt securities2. Exempt transactions

            Case:

1. Securities and Exchange Commission v. Prosperity.com, G.R. No. 164197, January 25, 20122. Power Homes Unlimited Corp. v. Securities and Exchange Commission, G.R. No. 164182, February 26, 2008

D. Procedure for registration of securitiesE. Prohibitions on fraud, manipulation and insider trading

1. Manipulation of security prices2. Short sales

3. Fraudulent transactions4. Insider trading

F. Protection of investors

                        1. Tender offer rule2. Rules on proxy solicitation3. Disclosure rule

G. Civil liability

X. Electronic Commerce Act (R.A. 8792)

A. State policy

B. Coverage

            1. Electronic Data Message            2. Electronic Signature            3. Electronic Document            4. Electronic Key

C. Legal Recognition

D. Admissibility and Evidential Weight

E. Electronic Contracts

            1. Actions Related to Contracts of Carriage of Goods