G.R. No. L-19190 November 29, 1922 THE PEOPLE OF THE PHIL ILIP IPP PINE CONCEPCION, defendant-appellant.
ISLA IS LAN NDS DS,,
plai pl aint ntif ifff-ap appe pell llee ee,,
vs.. vs
VENANCIO
FACTS: Ven enanc ancio io Con Concep cepcio cion, n, Pre Presid siden entt of the Ph Phili ilipp ppine ine Na Natio tional nal Ba Bank nk,, se sent nt te teleg legra ras s an and d a confiration letter to the anager of the Aparri !ranch of PNB, a"thori#ing an e$tension of credit in favo"r of P"no % Concepcion, S. en C. in the ao"nt of P&'','''.''. This special a"thori#ation liited the discretional po(er of the local anager of the Aparri !ranch to grant loans and disco"nt negotia!le doc"ents to P),''', (hich in certain cases, co"ld !e increased to P*','''. P"rs"ant to this a"thori#ation, credit aggregating P&'',''' (as granted to P"no % Concepcion, S. en C., the onl% sec"rit% re+"ired consisting of si$ deand notes. This P"no % Concepcion, S. en C., in realit% is a copartnership capitali#ed at P*'',''' (herein, Venancio Concepcions (ife o(ns half of the copartnership. Venancio Concepcion (as fo"nd g"ilt% !% the CF for violation of Section &) of Act /00 (hich provides that: : 1The National Bank shall not, directl% or indirectl%, grant grant loans to an% of the e!ers of the !oard of directors of the !ank nor to agents of the !ranch !anks.1 SS23S: *. 4hether 4hether or not the granti granting ng of a credit credit of P&'',''' P&'',''' to the copart copartners nership hip (as a 5loan6 5loan6 (ithin the eaning of Section &) of Act No. /00. 73S. The 1credit1 of an individ"al eans his a!ilit% to !orro( one% !% virt"e of the confidence or tr"st reposed !% a lender that he (ill pa% (hat he a% proise. A 1loan1 eans the deliver% !% one part% and the receipt !% the other part% of a given s" of one%, "pon an agreeent, e$press or iplied, to repa% the s" loaned, (ith or (itho"t interest. The concession of a 1credit1 necessaril% involves the granting of 1loans1 "p to the liit of the ao"nt fi$ed in the 1credit,1 /. 4hether 4hether or not the grantin granting g of a credit of P&'',''' P&'',''' to the copart copartners nership hip (as a 5loan6 5loan6 or a 5disco"nt6. 89AN. isco"nts are favored !% !ankers !eca"se of their li+"id nat"re, gro(ing, as the% do, o"t of an act"al, live, transaction. B"t in its last anal%sis, to disco"nt a paper is onl% a ode of loaning one%, (ith, ho(ever, these distinctions: ;*< n a disco"nt, interest is ded"cted in advance, (hile in a loan, interest is taken at the e$piration of a credit= ;/< a disco"nt is al(a%s on do"!le-nae paper= a loan is generall% on single-nae paper. Conceding, (itho"t deciding, the la( covers loans and not disco"nts, %et the concl"sion is inevita!le that the deand notes signed !% the fir 1P"no % Concepcion, S. en C.1 (ere not disco di sco"n "ntt pa pape perr !" !"tt (e (ere re er ere e evi eviden dences ces of ind inde! e!ted tedne ness, ss, !e !eca ca"se "se ;*< int intere erest st (a (as s no nott
ded"cted fro the face of the notes, !"t (as paid (hen the notes fell d"e= and ;/< the% (ere single-nae and not do"!le-nae paper. &. 4hether or or not the granting granting of of a credit of of P&'',''' P&'',''' to the copartners copartnershop hop (as an 5indirect 5indirect loan6 (ithin the eaning of Section &) of Act /00. 73S. n the interpretation and constr"ction of stat"tes, the priar% r"le is to ascertain and give effect to the intention of the 8egislat"re. n this instance, the p"rpose of the 8egislat"re is plainl% to erect a (all of safet% against teptation for a director of the !ank. The prohi!ition against indirect loans is a recognition of the failiar a$i that no an a% serve t(o asters > that (here personal interest clashes (ith fidelit% to d"t% the latter alost al(a%s s"ffers. f, therefore, it is sho(n that the h"s!and is financiall% interested in the s"ccess or fail"re of his (ife?s !"siness vent"re, a loan to partnership of (hich the (ife of a director is a e!er, falls (ithin the prohi!ition. Vario"s provisions of the Civil serve to esta!lish the failiar relationship called a con@"gal partnership. partnersh ip. ;Articles *&*), *&&, *'*, *'0, *', and **/ can !e speciall% noted.< A lo!, "#ere$ore, "o %r"!er&#'% o$ (#')# "#e ('$e o$ *'re)"or o$ b!+ '& member, '& ! '!*'re)" lo! "o &)# *'re)"or. That it (as the intention of the 8egislat"re to prohi!it e$actl% s"ch an occ"rrence is sho(n !% the ackno(ledged fact that in this instance the defendant (as tepted to ingle his personal and fail% affairs (ith his official d"ties, and to perit the loan P&'',''' to a partnership of no esta!lished rep"tation and (itho"t asking for collateral sec"rit%.
