GENERAL BANKING LAW OF 2000 (R.A. No. 8791, GBL); NEW CENTRAL BANK ACT (R.A. No. 7653, NCBA); LAW ON SECREC OF BANK !E"OSITS (R.A. No. 1#05, LSB) $ R%&'% &'*+ BANKS
- refer to entities engaged in the lending of funds obtained in the form of deposits. (Sec. 3.1, GBL) CON!ITIONS FOR ORGANIATION The Monetary Board may authorize the organization of a bank or quasi-bank subject to the following conditions: . That That the the ent entit ity y is a stoc stock k corpo corpora rati tion on!! ". That its funds funds are are obtaine obtained d from the public public## which which shall shall mean mean "$ or or more persons# persons# and! and! %. That the the minimum minimum capita capitall requiremen requirements ts prescribe prescribed d by the Monetary Monetary Board Board for each each category category of of banks are are satisfied satisfied..
(Sec. 8, GBL)
"RO-IBITE! ACTSTRANSACTIONS . Bank official officialss or employees employees are prohibited prohibited to disclose disclose to any unauthoriz unauthorized ed person any informat information ion relati&e relati&e to the funds funds or properties properties in the custody custody of the bank belonging to pri&ate pri&ate indi&iduals# indi&iduals# corporations corporations## or any other entity# entity# unless there is an order of a competent competent court of competent jurisdiction. ". Banks are prohibited prohibited from outsour outsourcing cing inherent inherent bankin banking g functions functions.. %. 'o bank shall employ employ casual casual or non-regular non-regular personnel personnel or too lengthy lengthy probationa probationary ry personnel personnel in the conduct conduct of its business business in&ol&ing in&ol&ing bank deposits. (Sec. 55, GBL) /ASI BANK, !EFINE! - shall refer to entities engaged in the borrowing of funds through the issuance# endorsement endorsement or assignment with recourse or acceptance acceptance of deposit substitutes as defined in (ec. )* of '+B, for purposes of re-lending or purchasing of recei&ables and other obligations. (Sec. 4,GBL) FOREIGN STOCK-OL!INGS oreign indi&iduals and non-bank corporations may own or control up to $/ of the &oting stock of a domestic bank. This rule shall apply to ilipinos and domestic non-bank corporations. (Sec.11, GBL)
GRAN!FAT-ER RLE The percentage of foreign-owned &oting stocks in a bank shall be determined by the citizenship of the indi&idual stockholders in that bank. The citizenship of the corporation# which is a stockholder in a bank# shall follow the citizenship of the controlling stockholders of the corporation# irrespecti&e of the place of incorporation. (Sec.11, GBL) FIT AN! "RO"ER RLE To maintain the quality of bank management and afford better protection to depositors and the public in general the Monetary Board shall prescribe# pass upon and re&iew the qualifications and disqualifications of indi&iduals elected or appointed bank directors o r officers and disqualify those found unfit. (Sec. 16, GBL) "RO-IBITION ON "BLIC OFFICIALS GENERAL RLE 'o appointi&e or electi&e public official official whether full-time or part-time part-time shall at the same time time ser&e as officer of any pri&ate bank. (Sec. (Sec. 19, GBL) ECE"TIONS . when the ser&ice ser&ice of the public public official official is is incident incident to financial financial assista assistance nce pro&ided pro&ided by the go&ernment go&ernment or a go&ernment go&ernment owned owned or controlle controlled d corporation to the bank! ". when the law pro&ides pro&ides otherwis otherwisee 0e.g. 1ural 1ural banks allow allow public official officials# s# electi&e electi&e or appointi&e appointi&e## to ser&e in a rural bank in any capacity capacity## (ec. *# 1ural Banks ,ct2 (Sec. 19, GBL) FOREIGN BANKS; O!ES OF ENTR . by acquirin acquiring g or owning owning up to 3$/ of the &oting stock of an e4isti e4isting ng bank! ". by in&esting in&esting in up to 3$/ 3$/ of the &oting &oting stock of a new local banking banking subsidiary subsidiary## or! %. by establ establishi ishing ng branch branches es with full banking banking authori authority. ty. (Sec. 2, Foreign Banks Liberalizaion !c) NOTE A4+o o :o So4< So4< ' !o=%+4 B'< The Monetary Board may authorize a foreign bank to acquire up to $$/ of the &oting stock of only bank organized under the 5hilippines laws. 6owe&er# this is allowed only within 7 years from the effecti&ity of 8B9# which is on une %# "$ $$. urther# at all times# the control of 7$/ of the resources or assets of the entire banking system is held by banks# which are at least majority-owned by ilipinos. (Sec. "3, GBL) (ec. 7%# 8B9 effecti&ely repealed the last sentence of (ec. "# oreign Banks 9iberalization ,ct which pro&ides that a foreign bank may own up to 3$/ of the &oting stock of only domestic bank or a new banking subsidiary. 'onetheless# after the lapse lapse of the 7-year limit# the 3$/ limitation shall again apply.
RE:OCATION OF LICENSE OF A FOREIGN BANK The Monetary Board may re&oke the license to transact business in the 5hilippines of any foreign bank under the following instances: . when the foreign bank is insol&ent or in imminent danger thereof# or! ". that its continuance in business will in&ol&e probable loss to those transacting business with it. (Sec. "8, GBL) S"ER:ISION AN! EAINATION OF BANKS The operations and acti&ities of banks shall be subject to super&ision of the Bangko (entral ng 5ilipinas. ;t shall also ha&e super&ision o&er the operations of and e4ercise regulatory powers o&er quasi-banks# trust entities and other financial institutions which under special laws are subject to Bangko (entral super&ision. (Sec. 4, GBL) "RIAR RES"ONSIBILIT OF BS" ;t shall pro&ide policy direction in the areas of money# banking and credit. (Sec. 5, GBL) ;t shall pro&ide policy directions in the areas of money# banking# and credit. ;t shall ha&e super&ision o&er the operations of banks and e4ercise such regulatory powers o&er the operations of finance companies and non-bank financial institutions performing quasi-banking functions# and institutions performing similar functions. (Sec. 3, #$B!) "RIAR OB>ECTI:E OF BS" To maintain price stability conduci&e to a balanced and sustainable growth of the economy. ;t shall also promote and maintain monetary stability and the con&ertibility of the peso. (Sec. 3, #$B!) TROIN>NCTIONS IN EAINATION OF BANKS ,s a rule courts cannot interfere with# or issue T1<=injunction in the in&estigation or e4amination of banks by the B(5# e4cept only in cases where there is bad faith and arbitrary actions. (Banco Filipino vs. Central Bank. 204 SCRA 767) "RI:ATE IN!I:I!ALS ALLOWE! TO "ROSECTE , pri&ate indi&idual can cause the prosecution of &iolation of banking laws since it constitutes a public offense and the prosecution is a matter of public interest. (Perez vs. Monetar Boar!. 20 SCRA "#2) CONSER:ATORS-I" OF BANKS ;t is an attempt to sa&e the bank from bankruptcy and ultimate liquidation CONSER:ATOR - a person appointed# after a bank is placed under conser&atorship# to take o&er the management of the bank and shall assume e4clusi&e powers to o&ersee e&ery aspect of the bank>s operation and affairs. (Central Bank vs. CA. 20$ SCRA 6"2) LIITATION ON CONSER:ATOR?S "OWER 6e may not re&oke perfected and enforceable contracts. This will be an infringement of the non-impairment clause guaranteed by the +onstitution. (First Bank vs. CA. 2"2 SCRA 2"#) RECEI:ERS-I" AN! LI/I!ATION OF BANKS 1ecei&ership is the summary closure of a bank by the B(5 without prior notice and hearing after a finding that the continuance in business would in&ol&e probable loss to its depositors and creditors. ( Central Bank vs. Co%rt o& Appeals. 220 SCRA "'6) INSTANCES W-EN A BANK/ASI BANK ABE "LACE! N!ER RECEI:ERS-I" . is unable to pay its liabilities as they become due in the ordinary course of business: pro&ided that this shall not include inability to pay caused by e4traordinary demands induced by financial panic in the banking community! (Sec. 3%, #$B!) ". has insufficient realizable assets# as determined by the Bangko (entral# to meet its liabilities! (Sec. 3%, #$B!) %. cannot continue in business without in&ol&ing probable losses to its depositors or creditors! (Sec. 3%, #$B!) . has willfully &iolated a cease and desist order that has become final# in&ol&ing acts or transactions which amount to fraud or a dissipation of the assets of the institution! in which cases# the Monetary Board may summarily and without need for prior hearing forbid the institution from doing business in the 5hilippines and designate the 5hilippine ?eposit ;nsurance +orporation as recei&er of the banking institution! (Sec. 3%, #$B!) *. ;n case it notifies the Bangko (entral or publicly announces a bank holiday# or in any manner suspends the payment of its deposit liabilities continuously for more than %$ days. 0this pertains to the insol&ency of bank2 ( Sec 53, las &ar. GBL) OT-ER I"ORTANT !OCTRINES @hen a bank is placed under recei&ership# its officers# including its acting president# are no longer authorized to transact business in connection with the bank>s assets and property. (Aac%s Real state *ev+t Center vs. Manila Bank. ,.R. -o. 62270. April 6/ 200") The appointment of a recei&er does not dissol&e the bank as a corporation nor does it interfere with the e4ercise of corporate rights. Banks under liquidation retain their corporate personality. The bank can sue and be sued but any case should be initiated and prosecuted through the liquidator. (Manalo vs. CA. ctoer 2002) @hen a bank is declared insol&ent and placed under recei&ership# the B(5 through the Monetary Board# determines whether to proceed with the liquidation or reorganization of the financially distressed bank. (Sps. 1arrois/ r. vs. P3il eterans Bank. ,.R. -o. '"706. ctoer / 2004) The assets of the bank shall be deemed in c'soia legis in the hands of the recei&er and shall# from the moment the bank was placed under recei&ership or liquidation# be e4empt from any order of garnishment# le&y# attachment# or e4ecution. (P3il. eterans Bank vs. -1RC. ,.R. -o. '0'#. ctoer 26/ ###) The B(5 forbids the bank from doing business. ,s such the bank cannot foreclose any mortgage. (Provi!ent Savin5s Bank vs. CA. 222 SCRA 2")
5endency of the case did not diminish the authority of the designated liquidator to administer and to continue the bank>s transactions. (Banco Pilipino Savin5s an! Mort5a5e Bank vs. aez. 44" SCRA 4$2) !EGREE OF !ILIGENCE , bank should e4ercise its functions and treat the accounts of their clients not only with the diligence of a good father of a family but it should do so with the highest degree of care considering the fiduciary nature of its relationship with its depositors. (BP8 vs. CA. '26 SCRA 64. 2000) The banks are under obligation to treat the accounts of its depositors with meticulous care always ha&ing in mind the fiduciary nature of their relationship. (BP8 vs. 8AC. 206 SCRA 40$.) 6owe&er# the higher degree of diligence is not e4pected to be e4erted by banks in commercial transactions that do not in&ol&e their fiduciary relationship with their depositors. (Rees vs. CA. ,.R. -o. $4#2. A%5%st "/ 200) By the &ery nature of the work of banks# the degree of responsibility# care and trustworthiness e4pected of their employees and officials is far greater that those of ordinary clerks and employees. Banks are e4pected to e4ercise the highest degree of diligence in the selection and super&ision of their employees. (PC8 Bank vs. CA. '"0 SCRA 446. 200) SECREC OF BANK !E"OSITS GENERAL RLE ,ll deposits of whate&er nature with banks or banking institutions in the 5hilippines including in&estments in bonds issued by the 8o&ernment of the 5hilippines# its political subdi&isions and its instrumentalities# are hereby considered as absolutely confidential in nature and may not be e4amined# inquired# or looked into by any person# go&ernment official# bureau or office. (Sec. 2, LSB) ECE"TIONS . @hen there is written permission of the depositor or in&estor! (Sec. 2, LSB) ". ;mpeachment cases! (Sec. 2, L$B) %. Apon the order of a competent court in cases of bribery or dereliction of duty of public officials! (Sec. 2,LSB) . Apon the order of a competent court in cases where the money deposited or in&ested is the subject of litigation! (Sec. 2, LSB) *. ;n case of prosecution of une4plained wealth! ( BF vs. P%risi9a. 6 SCRA "76 *.!. #o. 3%1) 3. ;n case of inquiry of the B;1 of bank accounts of a decedent for estate ta4 purposes or in case of a ta4 compromise! (Sec. 6F, #+*$ o 199") 7. Apon order of a competent court in cases of &iolation of the ,M9,! (*.!. #o. 916%, as a-ene) . ;ncidental disclosures of unclaimed balances Anclaimed Balances 9aw. (*.!. #o. 3696) "ERSONS BANNE! FRO LOOKING INTO BANK !E"OSIT ,ny person# go&ernment official# bureau or office. GARNIS-ENT OF BANK !E"OSITS The foreign currency deposit shall be e4empt from attachment# garnishment or any other order or process of any court# legislati&e body# go&ernment agency or any administrati&e body whatsoe&er. (Sec 8. *.!. 6426, F$!) C4cept when it has been established that there is probable cause that the deposits in&ol&ed are in any way related to money laundering. (Sec. 11, !/L!) The pro&ision of 1.,. 'o. 3"3# +?,# which prohibits garnishment of foreign currency deposits# is inapplicable to a foreign transient. ,ttachment of the foreign currency deposits of an ,merican tourist is allowed who kidnapped and raped a twel&e-year old ilipino child. The +?, applies to accounts of lenders and in&estors. (Salvacion vs. Central Bank o& t3e P3ilippines an! C3ina Bank. 27$ SCRA 27. ##7) LETTERS OF CRE!IT LETTER OF CRE!IT, !EFINE! , letter of credit is an engagement by a bank or other persons made at the request of a customer that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the credit. 0 Bank o& Co99erce vs. Serrano. 4" SCRA 4$4. Fer%ar 6/ 200") "R"OSE OF T-E LAW To substitute for the agreement of the buyer-importer to pay money und er a contract or arrangement. NATRE OF LETTER OF CRE!IT (3 +4 ' %@%% 4o'4+) . +ontract of sale between the buyer and the seller! ". +ontract of the buyer with the issuing bank# and! %. 9etter of credit proper in which the bank promises to pay the seller pursuant to the terms and conditions stated therein. (:en5 ;%a Paper Pro!%cts Co./ 8nc. vs. CA. 2$6 SCRA 2"7) "ERFECTION - perfected from the time the correspondent bank makes payment to persons in whose fa&or the letter of credit has been opened. "ARTIES . Buyer! ". ;ssuing bank! %. (eller. COERCIAL CRE!ITS AN! STAN!B CRE!ITS !ISTINGIS-E! +ommercial credits in&ol&e the payment of money under the contract of sale. (uch credits become payable upon the presentation by the seller-beneficiary of the documents that show he has taken affirmati&e steps to comply with the sales agreement. ;n the standby type# the credit is
payable upon certification of a party>s nonperformance of the agreement. The documents that accompany the beneficiary>s draft tend to sho w the applicant has not performed. The beneficiary of a commercial credit must demonstrate by documents that he has performed his contract. The beneficiary of the standby credit must certify that his obligor has not performed the contract.
BLK SALES LAW (A4 No. 3952) W-AT CONSTITTES BLK SALES . ,ny sale# transfer# mortgage# or assignment of a stock of goods# wares# merchandise# pro&isions# or materials otherwise than in the ordinary course of trade and the regular prosecution of the business of the &endor! ". ,ny sale# transfer# mortgage# or assignment of all or substantially all of the business or trade conducted by the seller# mortgagor# transferor# or assignor# and! %. ,ny sale# transfer# mortgage# or assignment of all or substantially all# of the fi4tures and equipment used in and about the business of the seller# mortgagor# transferor# or assignor. (Sec. 2) "R"OSE OF T-E LAW To pre&ent secret or fraudulent sale of the business# which could lead to its closure# to the detriment of the creditors. W-EN BLK SALES LAW !OES NOT A""L . @hen the sale# transfer# or disposition is made in the ordinary course of business! ". @hen there is a wai&er of all the creditors# and! %. @hen the sale# transfer# or disposition is by &irtue of judicial order. FORALITIES . C4ecution of an affida&it# listing the names and addresses of all creditors# the nature and the amount of obligation! ". 5reparation of in&entory of the stocks to be sold! %. 'otification of all the creditors at least $ days before the projected sale in bulk# and! . 1egistration of the foregoing documents with the Bureau of ?omestic Trade. (Sec. 304) EFFECTS OF FAILRE TO OBSER:E T-E FORALITIES . (ale is null and &oid! ". 5urchaser holds the property in trust for the seller! %. 5urchaser is liable to the seller>s creditors for properties he bought# and already disposed of by him# and! . 5urchaser has the right to demand from the seller the return of the purchase price plus damages.
WARE-OSE RECEI"TS LAW (A4 No. 2137, '+ '=%%) "R"OSES OF T-E LAW . To regulate the status# rights and liabilities of the parties in a warehousing contract! ". To protect those who# in good faith and for &alue# acquire negotiable warehouse receipts by negotiation! %. To render the title to# and right of possession of property stored in warehouses more easily con&ertible! . To place a much greater responsibility on the warehouseman. WARE-OSE RECEI"T, !EFINE! - a written acknowledgment by the warehouseman that he has recei&ed goods from the depositor and holds the same in trust for him. KIN!S OF RECEI"T . NEGOTIABLE WARE-OSE RECEI"T - a receipt in which it is stated that the goods recei&ed will be deli&ered to the bearer or to the or der of any person named in such receipt. (Sec. 5) ". NONNEGOTIABLE WARE-OSE RECEI"T - a receipt in which it is stated that the goods recei&ed will be deli&ered to the depositor or to any other person. (Sec. 4) - a non-negotiable receipt shall place upon its face by the issuing warehouseman# non-negotiable or not negotiable. - upon failure to do so# a holder who purchased it for &alue supposing it to be negotiable# may# at his option treat such receipt as imposing upon the warehouseman the same liabilities he would ha&e incurred had the receipt been negotiable. (Sec. ") INSTANCES W-ERE WARE-OSEAN BON! TO !ELI:ER , warehouseman# in the absence of some lawful e4cuse pro&ided by ,ct 'o. "%7 is bound to deli&er the goods upon a demand made either by the holder of a receipt for the g oods or by the depositor# if such demand is accompanied with: a. offer to satisfy warehouseman>s lien! b. offer to surrender receipt# if negotiable# with such indorsements as would be necessary for the negotiation of the receipt# and! c. readiness and willingness to sign# an acknowledgment when the goods are deli&ered# of such signature is requested by the warehouseman. (Sec. 8)
"ERSON TO W-O GOO!S ST BE !ELI:ERE! . person lawfully entitled to the possession of the goods# or his agent! ". person who is either himself entitled to deli&ery by the terms of the non-negotiable receipt issued for the goods# or who has written authority from the person so entitled either indorsed upon the receipt or written upon another paper# or! %. person in possession of a negotiable receipt by the terms of which the goods are deli&erable to him or order# or to the bearer# or which has been indorsed to him or in blank by the person to whom deli&ery was promised by the terms of the receipt or by his immediate indorser. (Sec. 9) INSTANCES W-EN WARE-OSEAN A LEGALL REFSE TO !ELI:ER GOO!S . @hen the holder of the receipt does not satisfy the conditions prescribed in (ec. of ,ct 'o. "%7# as amended. ". @hen the warehouseman has legal title in himself on the goods# such title or right being deri&ed directly or indirectly from the transfer made by the depositor at the time or subsequent to the d eposit for storage# or from the warehouseman>s lien. (Sec. 16) %. ;f he had been requested by a person lawfully entitled to a right of property or possession in the goods not to make deli&ery to any person. (Sec.1%) . ;f he had information that the deli&ery to be made was to one not lawfully entitled to the possession of the goods. (Sec.1%) *. @here the goods ha&e already been lawfully sold to third persons to satisfy the warehouseman>s lien or disposed of because of their perishable nature. (Sec. 36) 3. ;n case of ad&erse claimants. (Secs. 1"18) 7. ;n the &alid e4ercise of the warehouseman>s lien. (Sec. 31) INSTANCES W-ERE WARE-OSEAN LIABLE FOR CON:ERSION E:EN WIT- AT-ORIT The warehouseman is also liable e&en with indorsement or with authority# he is likewise liable# if prior to deli&ery he had either: . been requested# by or on behalf of the person lawfully entitled to a right of property or possession in the goods# not to make such deli&ery# or! ". had information that the deli&ery about to be made was to one not lawfully entitled to the possession of the goods. (Sec. 1%) !T OF WARE-OSEAN W-ERE SE:ERAL CLAI T-E GOO!S . determine within reasonable time the &alidity of the conflicting claim! (Sec.18) ". bring a complaint in interpleader! (Sec.1, *'le 62 o e *'les o $o'r) %. require claimant to litigate among themsel&es (Sec.1"). TRST RECEI"TS LAW (".!. No. 115) TRST RECEI"T, !EFINE! , trust receipt is one where the entruster# who holds an absolute title or security interests o&er certain goods# documents or instruments# released the same to the entrustee# who e4ecutes a trust receipt binding himself to hold the goods# documents or instruments in trust for the entruster and to sell or otherwise dispose of the goods# documents and instruments with the obligation to turn o&er to the entruster the proceeds thereof to the e4tent of the amount owing to the entruster# or a s appears in the trust receipt# or return the goods# documents or instruments themsel&es if they are unsold# or not otherwise disposed o f# in accordance with the terms and conditions specified in the trust r eceipt. (Bank o& Co99erce vs. Serrano. 4" SCRA 4$4. Fer%ar 6/ 200") "R"OSE OF T-E LAW To punish dishonesty and abuse of confidence in the handling of money or goods to the prejudice of public order. (n5 vs. CA. ,.R. -o. #$"$. April 2#/ 200') NATRE OF TRST RECEI"T , trust receipt partakes of the nature of a security transaction. ;t could ne&er be a mere additional or side document.
EFFECT ON INTERNATIONAL CON:ENTIONS AN! ON "RINCI"LE OF RECI"ROCIT ,ny person who is a national or who is domiciled or has a real and effecti&e industrial establishment in a country which is a party to any con&ention# treaty or agreement relating to intellectual property rights or the repression of unfair competition# to which the 5hilippines is also a party# or e4tends reciprocal rights to nationals of the 5hilippines by law# shall be entitled to benefits to the e4tent necessary to gi&e effect to any pro&ision of such con&ention# treaty or reciprocal law# in addition to the rights to which any owner of an intellectual property right is otherwise entitled by this ,ct. (Sec. 3) SIGNIFICANT FEATRES OF T-E LAW . , shift was made from the Dfirst-to-in&ent systemD under 1.,. 'o. 3* Eold lawF to Dfirst-to-file systemD under the new law. ". ;n the case of in&entions# the period of the grant was increased from 7 years from grant under the old law to "$ years from date of filing under the new law. %. ;n the case of utility models# the pre&ious grant of * years plus renewals of * years each under the old law was changed to 7 years without renewal under the new law. . ;n the case of industrial designs# the pre&ious grant of * years plus renewals of * years each was maintained. *. Ander the old law# there was no opposition proceedings and the e4amination is mandatory! under the new law# the e4amination is made only upon request possibly with or without e4amination. 3. Ander the old law# publication is made after the grant! under the new law# publication is effected after months from filing date or priority date. 7. Ander the old law# the penalties for repetition of infringement are: 5$#$$$ and=or * years of imprisonment and the offense prescribes in " years! under the present law# the penalties range from 5$$#$$$ to 5%$$#$$$ and=or 3 months to % years of imprisonment and the offense prescribes in % years. GO:ERNENT AGENCIES The agency of the go& ernment in charge of the implementation of the ;ntellectual 5roperty +ode is the ;ntellectual 5roperty
,n in&ention in&ol&es an in&enti&e step if# ha&ing regard to prior art# it is ob&ious to a person skilled in the art at the time of the filing date or priority date of the application claiming the in&ention. (Sec 26) c2 ;ndustrial ,pplicability ,n in&ention that can be produced and used in any industry shall be industrially applicable. (Sec. 2") FIRSTTOFILE RLE . if two or more persons ha&e made the in&ention separately and independently of each other- right to patent belongs to the person who filed an application for such in&ention! ". if two or more applications are filed for the same in&ention- to the applicant who has the earliest filing date or# the earliest filing date. (Sec. 29) GRON!S FOR CO"LSOR LICENSING The ?irector of 9egal ,ffairs may grant a license to e4ploit a patented in&ention# e&en without the agreement of the patent owner# in fa&or of any person who has shown his capability to e4ploit the in&ention# under any of the following circumstances: . 'ational emergency or other circumstances of e4treme urgency! ". @here the public interest# in particular# national security# nutrition# health or the de&elopment of other &ital sectors of the national economy as determined by the appropriate agency of the 8o&ernment# so requires! %. @here a judicial or administrati&e body has determined that the manner of e4ploitation by the owner of the patent or his licensee is anticompetiti&e! . ;n case of public non-commercial use of the patent by the patentee# without satisfactory reason! *. ;f the patented in&ention is not being worked in the 5hilippines on a commercial scale# although capable of being worked# without satisfactory reason. (Sec. 93) RIG-T TO A "ATENT . to the in&entor# his heirs# or assigns ". when two or more persons ha&e jointly made an in&ention - to them jointly %. if two or more persons ha&e made the in&ention separately and independently of each other - to the person who filed an application for such in&ention . when two or more applications are filed for the same in&ention - to the applicant who has the earliest filing date or the earliest priority date. INFRINGEENT The making# using# offering for sale# selling# or importing a patented product or a product obtained directly or indirectly from a patented process# or the use of a patented process without the authorization of the patentee. . +i&il action for infringement a. to reco&er from the infringer damages as the court may award pro&ided that it shall not e4ceed % times the amount of the actual damages sustained plus attorney>s fees and other e4penses of litigation! b. action for injunction! c. to recei&e reasonable royalty# if damages are inadequate! d. to ha&e the infringing goods# materials# and implements used in the infringement disposed of outside the channels of commerce or destroyed! e. to hold contributory infringer jointly and se&erally liable with the infringer. ". +riminal action for repetition of infringement TRA!EARKSSER:ICEARK - any &isible sign capable of distinguishing the goods 0trademark2 or ser&ices 0ser&ice mark2 of an enterprise and shall include a stamped or marked container of goods. (Sec. 121.1) TRA!ENAE - name or designation identifying or distinguishing an enterprise. (Sec. 121.3) -OW ARKS AC/IRE! The rights in a mark shall be acquired through registration made &alidly in accordance with the pro&isions of this law. (Sec. 122) !OCTRINE OF SECON!AR EANING - a long time e4clusi&e and continuous use of a mark or name which is unregistrable for being geographical # descripti&e or a surname# such that the mark or name has lost its secondary meaning and it becomes associated in the public mind with particular goods. REE!IES OF T-E OWNER OF T-E REGISTERE! ARK . +i&il action damages impounding of sales in&oices injunction destruction of goods found to be infringing ". +riminal ,ction
, certificate of registration gi&es rise a presumption of its &alidity and the right to the e4clusi&e use of the trademarks.
@hile an administrati&e cancellation of a registered trademark# on any of the grounds under (ec. 7 of 1.,. 'o. 33# is within the ambit of the B5TTT# an action for infringement or other incidental remedy sought is within the jurisdiction of the ordinary courts. ,n action for infringement or unfair competition# including the a&ailable remedies of injunction and damages# in the regular courts can proceed independently or simultaneously with an action for the administrati&e cancellation of a r egistered trademark in the B5TTT. (1evi Sta%ss (P3ils.) 8nc. vs. o5%e
The format of a show is not copyrightable. The copyright does not e4tend to the general concept or format of its dating game show. +opyright does not e4tend to an idea# procedure# process# system# method of operation# concept# principle# or disco&ery# regardless of the form in which it is described# e4plained# illustrated or embodied in such work. (oa>%in/ r. vs. *rilon. an%ar 2$/ ###) +opyright infringement and unfair competition are not limited to the act of selling counterfeit goods. They co&er the whole range of acts# from copying# assembling# packaging to marketing# including the mere offering for sale of the counterfeit goods. (Microso&t Corporation vs. Ma?icorp./ 8ncorporate!. 4'$ SCRA 224) +opyright shall be presumed to subsist in the work or o ther subject matter to which the action relates if the defendant does not put in issue the question whether copyright subsist in the work or sub ject matter! and @here the subsistence of the copyright is established# the plaintiff shall be presumed to be the owner of the copyright and the defendant does not put in issue the question of his ownership. (Baani3an M%sic P3ilippines/ 8nc. vs. BM, Recor!s (Pilipinas)/ t Al. ,.R. -o. 66''7. Marc3 7/ 200)
C-ATTEL ORTGAGE LAW (A4 No. 1508 %&'o o A+. 1#8#, 1#85, 21#0 ' 21#1 o % N%* CD& Co%) REAL ESTATE ORTGAGE (A4 3135, '+ '=%% R.A. NO. #118) C-ATTEL ORTGAGE, !EFINE! By a chattel mortgage# personal property is recorded in the +hattel Mortgage 1egister as a security for the performance of an obligation. ;f the mo&able instead of being recorded# is deli&ered to the creditor or a third person# the contract is a pledge and not a chattel mortgage. (Sec. 214%, #$$) FORALITIES . 1egistration ;t must be registered in the +hattel Mortgage 1egister of the 1egister of ?eeds where the mortgagor resides or if he resides in the 5hilippines in the place where the property is situated. (Sec. 4, !c #o. 15%8) ". ,ffida&it of 8ood aith ;t is a subscribed statement in contract of chatted mortgage wherein the parties se&erally swear that the mortgage is made for the purpose of securing the obligation specified in conditions thereof# and for no other purpose and that the same is just and &alid obligation and one not entered into for the purpose of fraud. (Sec. 5, !c #o. 15%8) !EFIENC AFTER FORECLOSRE
@hen the proceeds of the sale are insufficient to co&er the debts in an e4trajudicial foreclosure of chattel mortgage# the mortgagee is entitled to claim the deficiency from the debtor. (State 8nvest9ent ;o%se/ 8nc. vs. CA. 27 SCRA '2/ ##') E/IT OF RE!E"TION :S. RIG-T OF RE!E"TION The right of redemption in relation to a mortgage e4ists only in the case of the e4trajudicial foreclosure of the mortgage. 'o such right is recognized in a judicial foreclosure e4cept only where the mortgage is a bank or banking institution. The period to e4ercise the right of redemption is within one year from the registration of the sheriff>s certificate of foreclosure sale. @here no right of redemption e4ists in case of a judicial foreclosure because the mortgagee is not a bank or a banking institution# the foreclosure sale when confirmed by an order of the court shall operate to di&est the rights of all parties to the action and to &est their rights in the purchaser. There then e4ists only what is simply known as the equity of redemption. This is simply the right of the defendant mortgagor to e4tinguish the mortgage and retain ownership of the property by paying the secured debt within the )$-day period after the judgment becomes final# in accordance with 1ule 3 of the 1ules of +ourt# or e&en after the foreclosure sale# but prior to confirmation. (;%erta Ala Resort/ 8nc. vs. CA. Septe9er / 2000. ,.R. -o. 2$"67)
OT-ER I"ORTANT !OCTRINES 'o mortgage on any unit or lot shall be made by the owner or de&eloper without prior written appro&al of the 6ousing and 9and Ase 1egulatory Board 069A1B2. , mortgagee>s want of knowledge due to its negligence takes the place of registration H it is presumed to know the rights of others o&er the lot H and the con&ersion of its status as mortgageee to buyer-owner will not lessen the importance of such knowledge. Ander the ,rt. "$* of the +i&il +ode# the essential requisites of a contract of mortgage are: 0a2 that it be constituted to secure the fulfillment of a principal obligation! 0b2 that the mortgagor be the absolute owner of the thing mortgaged! and 0c2 that the persons constituting the mortgage ha&e the free disposal of their property# and in the absence thereof# that they be legally authorized for the purpose. ( ;o9e Bankers Savin5s @
Ander ,rt. "$* of the +i&il +ode# one of the essential requisites of the contract of mortgage is that the mortgagor should be the absolute owner of the property to be mortgaged! otherwise# the mortgage is considered null and &oid H an e4ception to this rule is the doctrine of Jmortgage in good faith.I (1lanto vs. Alzona. 4"0 SCRA 2$$. an%ar '/ 20 0") The right of redemption should b e e4ercised within the specified time limit# which is one year from the date of registration of the certificate of sale. ;n case of disagreement o&er the redemption price# the redemptioner may preser&e his right of redemption through judicial action which in e&ery case must be filed within the one-year period of redemption. The general rule in redemption is that it is not sufficient that a person offering to redeem manifests his desire to do so H the statement of intention must be accompanied by an actual and simultaneous tender of payment. (Banco Filipino Savin5s an! Mort5a5e Bank vs. CA. 46' SCRA 64. %l 2$/ 200") , foreclosure sale buyer# ha&ing accepted payment from persons claiming right to redeem foreclosed property# has the obligation to account for such payment# to return the e4cess# if any# to allow redemption. (R%ral Bank o& Calino5 (8loilo)/ 8nc. vs. CA. 46' SCRA 7#. %l 2$/ 200") , recorded real estate mortgage is a right in rem# a lien on the property whoe&er its owner may be. Mortgage follows the property until discharged. ?ebtor in e4trajudicial foreclosures under ,ct 'o. %%* or his successor-in-interest has one year from the date of registration of the +ertificate of (ale with the 1egistry of ?eeds a right to redeem the foreclosed mortgage. The buyer in a foreclosure sale becomes the absolute owner of the property purchased if it is not redeemed during the period of one year after the registration of the sale. (Pare!es vs. CA. 46' SCRA "0". %l "/ 200")
INSOL:ENC LAW (A4 No. 1956) INSOL:ENC !ISTINGIS-E! FRO SS"ENSION OF "AENTS . ;n insol&ency# the liabilities of the debtor are more than his assets while in suspension of payments the assets of the debtor are more than his liabilities. ". ;n insol&ency# the purpose is to obtain discharge from all debts and liability while in suspension of payments the purpose is to delay payment of debts which remain unaffected although a postponement of payments is declared. %. ;n insol&ency# the assets of the debtor are to be con&erted into cash for distribution among his creditors# while in suspension of payments the debtor is asking for time within which to con&ert his properties into cash with which to pay his creditors as the obligations fall due. IN:OLNTAR INSOL:ENC !ISTINGIS-E! FRO :OLNTAR INSOL:ENC . ;n in&oluntary# three or more creditors are required while in &oluntary one creditor may be sufficient. ". ;n in&oluntary# the creditors must be residents of the 5hilippines whose credits or demand accrued in the 5hilippines and none of the creditors has become a creditor by assignment within %$ days prior to the filing of the petition while no such requirements e4ist for &oluntary insol&ency. %. ;n in&oluntary# the amount of indebtedness must be less than 5#$$$ while for &oluntary# it must e4ceed 5#$$$. . ;n in&oluntary# the petition must be accompanied by a bond# while &oluntary does not require a bond.
TRT- IN LEN!ING ACT (R.A. No. 3765, '+ '=%% % Co+=% A4 o 1992) !ISCLOSRE RE/IREENT ,ny creditor shall furnish to each person to whom credit is e4tended# prior to the consummation of the transaction# a clear statement in writing setting forth# to the e4tent applicable in accordance with rules and regulations prescribed by the Monetary Board of the B(5# the following information: . the cash price or deli&ered price of the property or ser&ice to be acquired! ". the amounts# if any# to be credited as down payment and=or trade-in! %. the difference between the amounts set forth under clauses and "! . the charges# indi&idually itemized# which are paid or to be paid by such person in connection with the transaction but which are not incident to the e4tension of credit! *. the total amount to be financed! 3. the finance charge e4pressed in terms of pesos and centa&os! 7. the percentage that the finance charge bears to the total amount to be financed e4pressed as a simple annual rate on the outstanding unpaid balance of the obligation! . the effecti&e interest rate! ). the repayment program! $. the default or delinquency charges on late payments. (Sec.4)
C4cessi&e interests# penalties and other charges not re&ealed in disclosure statements issued by banks e&en if stipulated in the promissory notes# cannot be gi&en effect under Truth un 9ending ,ct. (-e Sa9pa5%ita B%il!ers Constr%ction/ 8nc. vs. P3ilippine -ational Bank. ,.R. -o. 4$7"'. %l '0/ 2004) ANTI ONE LAN!ERING LAW (R.A. No. 9160, '+ '=%% R.A. No. 919#) ONE LAN!ERING, !EFINE! is a crime whereby the proceeds of an unlawful acti&ity are transacted# thereby making them appear to ha&e originated from legitimate sources. (Sec. 4)
6ow is the offense money laundering committedK . ,ny person knowing that any monetary instrument or property represents# in&ol&es# or relates to# the proceeds of any unlawful acti&ity# transacts or attempts to transact said monetary instrument or property. ". ,ny person knowing that any monetary instrument or property in&ol&es the proceeds of any unlawful acti&ity performs or fails to perform any acts as a result of which he facilitates the offense of money laundering referred to in paragraph abo&e. %. ,ny person knowing that any monetary instrument or property is required under this ,ct to be disclosed and filed with the ,M9, +ouncil fails to do so. NLAWFL ACTI:ITIES N!ER ALA ,ny act or omission or series or combination thereof in&ol&ing or ha&ing direct relation to the following: . Lidnapping for ransom under ,rt. "37 of the 1e&ised 5enal +ode# as amended. ". (ecs. # *# 7# # )# $# "# %# # * and 3 of the +omprehensi&e ?angerous ?rugs ,ct of "$$". %. (ection %# paragraphs B# +# C# 8# 6 and ; of ,nti-8raft and +orrupt 5ractices ,ct. . 5lunder under 1, 7$$# as amended. *. 1obbery and e4tortion under ,rts. ")# ")*# ")3# "))# %$$# %$ and %$" of the 15+# as amended. 3. ueting and masiao punished as illegal gambling under 5? 3$". 7. 5iracy on the high seas under the 15+# as amended and 5? *%". . ualified theft under ,rt. %$ of the 15+# as amended. ). (windling under ,rt. %* of the 15+# as amended. $. (muggling under 1, ** and )%7. . Niolations under Clectronic +ommerce ,ct of "$$$. ". 6ijacking and other &iolations under 1, 3"%*# destructi&e arson and murder# as defined under the 15+# as amended# including those perpetrated by terrorists against non-combatant persons and similar targets. %. raudulent practices and other &iolations under (ecurities 1egulation +ode of "$$$. . elonies or offenses of a similar nature that are punishable under the penal laws of other countries.
