Heirs of the Late Spouses Maglasang v.

Manila Banking Corp September 23, 2013 Heirs of the Late Spouses Flaviano Maglasang and Salud Adaza Maglasang, representing the !states of the afore named "e#eased $arents %Oscar A. Maglasang, Edgar A. Maglasang, Concepcion Chona A. Magalasang, Glenda A. Maglasang-Arnaiz, Lerma A. Maglasang, Felma A. Maglasang, Fe Doris A. Maglasang, Leolino A. Maglasang, Margie Leila A. Maglasang, Ma. Milalie A. Maglasang, Salud Maglasang and Ma. Flasalie A. Maglasang& vs' Manila (an)ing *orporation, +o, Substituted b- First Sovereign Asset Management %S$. AM*&, /n#, /+*' %FSAM/& PE LAS-!E "A!E, #.$ SUMMARY: Sps' Maglasang obtained a #redit line fromM(* se#ured b- 0!M' 1hen Flaviano Maglasang died, his son !dgar ,as appointed as att- in fa#t b- Flaviano2s heirs' He filed a petition for letters of administration of Flaviano2s intestate estate ,3# the probate #ourt granted' *ourt issued a +oti#e to *reditors for filing of mone- #laims against the estate' M(* notified the #ourt of its #laim' 1hen *ourt terminated the pro#eedings and e4e#uted an e4tra 5udi#ial partition over the properties, the loan obligations o,ed to M(* remained unsatisfied though the #ourt re#ognized the rights of M(* to fore#lose the mortgage' M(* e4tra5udi#iall- fore#losed the mortgage6 ho,ever, after au#tion sale, a defi#ien#- remained on Maglasangs2 obligation' 7hus, it filed a suit to re#over the defi#ien#-' 07* ruled in their favor so Maglasangs appealed to *A #ontending that under 0emedies available to Manila (an)ing *orp' under Se#' 8, 0ule 9: of 0;* are al%erna%i&e and e'clusi&e, su#h that the ele#tion of one operates as a ,aiver of the others and sin#e M(* filed a #laim in the probate #ourt, it has abandoned its right to fore#lose the propert- and is barred from re#overing an- defi#ien#-' *A denied the appeal and #ontended that A#t' 313< applies ,3# allo,s M(* to e4tra5udi#iall- fore#lose and re#over the defi#ien#-' HELD: M(* had a right to e4tra5udi#iall- fore#lose the propert- but it #annot re#over the defi#ien#-' (oth Se#' 8, 0ule 9: of 0;* and A#t' 313< appl- #omplementaril- in the #ase at bar' Fore#losure under the 3rd remed- in Se#' 8, 0ule 9: of 0;* in#ludes e4tra5udi#ial fore#losure under A#t' 313<' Ho,ever, upon #hoosing said remed-, #reditor ,aives his right to re#over the defi#ien#-' 1hen M(* sought to e4tra 5udi#iall- fore#lose the mortgage of the properties previousl- belonging to Sps' Maglasang and it therefore, availed of the third option ,aiving its right to re#over the defi#ien#-' D C!R"#E: 7here are 3 remedies3options b- se#ured #reditor under Se#' 8, 0ule 9:= (a) *ai&e %he mor%gage and claim %he en%ire de+% ,rom %he es%a%e o, %he mor%gagor as an ordinar- claim. (+) ,oreclose %he mor%gage /udiciall- and pro&e %he de,icienc- as an ordinar- claim. and (c) rel- on %he mor%gage e'clusi&el-, or o%her securi%- and ,oreclose %he same +e,ore i% is +arred +- prescrip%ion, *i%hou% %he righ% %o ,ile a claim ,or an- de,icienc-. 7hese ma- be AL7!0+A7/.!L> adopted for the satisfa#tion of his indebtedness' Ho,ever, these remedies are distin#t, independent and mutuall- !?*L@S/.! from ea#h other6 the ele#tion of one effe#tivel- (A0S the e4er#ise of the others' Se#' 8, 0ule 9: of 0;* la-s do,n the options for the se#ured #reditor to #laim against the estate and, a##ording to 5urispruden#e, the availment of the 3rd option (A0S H/M F0;M *LA/M/+A A+> "!F/*/!+*> amount' After 3rd option is #hosen %under Se#' 8, 0ule 9:&, the pro#edure governing the manner in ,hi#h the e4tra 5udi#ial fore#losure should pro#eed ,ould still be governed b- the provisions of A#t +o' 313<' $AC!S: Bune 1:, 28<= Sps' Flaviano and Salud Maglasang obtained a %re&it line from Manila (an)ing *orp' for '()*+*** ,hi#h ,as se#ured b- a real estate ,ortgage e4e#uted over 8 of their properties in ;rmo# *it- and Cananga, Le-te' 7he- availed of their #redit line b- se#uring loans of '-*.+/.*.)* %;#t' 2D, E8<& F '0(.+1*).1( %Mar' 1<, 1G8:& o (oth due and demandable ,3n 1 -ear ,ith interest H 12I per annum F additional DI penalt- #harged upon default Feb' 1D, 1G88= Flaviano Maglasang died intestate 7hus, his ,ido, Salud Maglasang and their surviving #hildren, herein petitioners, appointed their brother petitioner E&gar Maglasang as their attorne- in fa#t' o ;ther petitioners= Oscar, Concepcion Chona, Lerma, Felma, Fe Doris, Leolino, Margie Leila, Ma. Milalie, Salud and Ma. Flasalie, all surnamed Maglasang, and Glenda Maglasang-Arnaiz. Mar' 30, 1G88= !dgar filed a verified petition for letters of a&,inistration of the intestate estate of Flaviano before *F/ of Le-te, ;rmo# *it- %probate #ourt&' C$"2pro3ate %ourt %Aug' G, 1G88&= Aranted petition appointing !dgar as the administrator of Flaviano2s estate' C$"2pro3ate %ourt %Aug' 30, 1G88&= /n vie, of the issuan#e of letters of administration, probate #ourt issued a #oti%e to Cre&itors for the filing of mone- #laims against Flaviano2s estate' As one of the #reditors of Flaviano, Manila Banking Corp. notifie& the pro3ate %ourt of its #laim for $392,8<3'1G % as o, Oc%. 00, 0123, e'clusi&e o, in%eres%s and charges&' "uring the penden#- of the intestate pro#eedings, !dgar and ;s#ar ,ere able to obtain several loans from Manila (an)ing *orp, se#ured b- promissor- notes ,hi#h the- signed' C$"2pro3ate %ourt 4De%. 05+ 0./16: !er,inate& the pro%ee&ings 7ith the surviving heirs+ e8e%uting an e8tra29u&i%ial partition of the properties of $laviano:s estate. o Loan obligations owed by the estate to Manila Banking Corp., however, remained unsatisfied due %o Manila !an4ing Corp.5s cer%i,ica%ion %ha% Fla&iano5s accoun% *as undergoing a restructuring. o +onetheless, probate #ourt e4pressl- re%ogni;e& the rights of Manila Banking Corp ' under the mortgage and promissor- notes e4e#uted b- the Sps' Maglasang, spe#ifi#all-, its right to foreclose the same within the statutory period. Manila (an)ing *orp' pro#eeded to e8tra29u&i%iall< fore%lose the mortgage #overing the Sps' Maglasang2s properties and emerged as the highest bidder at the publi# au#tion for '()*k done at ;rmo# *it-' 7here, ho,ever, re,aine& a &efi%ien%< on Sps' Maglasang2s obligation to Manila (an)ing *orp'

Bune 2D, 1G91= Manila (an)ing *orp' filed a suit to re%over the &efi%ien%< of $2<0,:01'0< as of Ma- 31, E91 against the estate of Flaviano, his ,ido, Salud and their #hildren' R!C2for,er pro3ate %ourt %Apr' :, 1G98&= "ire#ted the Maglasangs to pa- Manila (an)ing *orp' 5ointl- and severall-, '5(5+/5-.(= representing the &efi%ien%< of the former2s total loan obligation to the latter after the e4tra 5udi#ial fore#losure of the 0!M *i%h in%eres% a% %he ra%e o, 067 p.a., plus a 87 penal%- charge, rec4oned ,rom Sep%. 9, 0138 un%il ,ull- paid : a%%-s. ,ees (0;7 o, %he ou%s%anding o+liga%ion) Maglasangs elevated the #ase to *A on appeal, #ontending that= o 0emedies available to Manila (an)ing *orp' under Se%. /+ Rule 1= of R C are alternative and e clusive+ su#h that the ele%tion of one operates as a 7aiver or a3an&on,ent of the others. o 1hen Manila (an)ing *orp' file& its %lai, against the estate of Flaviano in the pro#eedings before the probate #ourt, it effe#tivel- a3an&one& its right to fore%lose on the mortgage' o !ven on the assumption that it has not so ,aived its right to fore#lose, it is nonetheless 3arre& fro, filing an< %lai, for an< deficiency a,ount' Bul- 2<, EG8= "uring the penden#- of the appeal, Flaviano2s ,ido,, Salud, passed a,a-' CA %Bul- 20, 200<&= "enied Maglasangs2 appeal and affirmed 07*2s "e#ision' o $robate #ourt erred ,hen it #losed and terminated the intestate pro#eedings %as seen in its "e#' 1D, E89 ;rder& ,ithout first satisf-ing the #laims of the #reditors of the estate %ie' Manila (an)ing *orp'& in violation of Se#' 1, 0ule G0 of 0;* o As a #onseJuen#e, Manila (an)ing *orp' ,as not able to #olle#t from the Maglasangs and thereb- ,as left ,ith the option of fore#losing the real estate mortgage o Se%. /+ Rule 1= of R C &oes not appl< sin%e the %ase &oes not involve a mortgage made by the administrator over an< propert< 3elonging to the estate of the &e%e&ent pursuant to '#B v CA. o A%t #o. (0() %KAn A#t to 0egulate the Sale of $ropert- under Spe#ial $o,ers inserted or anne4ed to 0eal !state MortgagesL& is appli#able ,hi#h entitles Manila Banking Corp. to %lai, the &efi%ien%< a,ount after the e8tra29u&i%ial fore%losure of the real estate mortgage of Sps' Maglasang2s properties' Maglasang2s M0 ,as subseJuentl- denied6 hen#e, this petition for revie, on cer%iorari b- Heirs of Sps' Maglasang o /t is not A%t #o. (0() 3ut Se%. /+ Rule 1= of R C ,hi#h applies in this #ase' %same claims as %ha% raised in CA& o 7he e4tra 5udi#ial fore#losure of the sub5e#t properties ,as null and void, not having been #ondu#ted in the #apital of the $rovin#e of Le-te in violation of the stipulations in the real estate mortgage #ontra#t' "SSUES: 1& 1hether or not the *A erred in affirming the 07*2s a,ard of the defi#ien#- amount in favor of Manila (an)ing *orporationM %>!S& N#orollaril-, <he%her Sec. 2, ule 3= o, OC and no% Ac%. >0>9 applies in %his caseM %(oth appl- #on#ordantl-&O 2& 1hether e4tra5udi#ial fore#losure of the sub5e#t properties ,as null and voidM %+;& HELD: 7he petition is partl- meritorious' RA!" : 406 (oth Se#' 8, 0ule 9: of 0;* and A#t' 313< appl- #omplementaril- in the #ase at bar' Fore#losure under the 3 rd remed- in Se#' 8, 0ule 9: of 0;* in#ludes e4tra5udi#ial fore#losure under A#t' 313<' Ho,ever, upon #hoosing said remed-, #reditor ,aives his right to re#over the defi#ien#-' *laims against de#eased persons should be filed during the settle,ent pro%ee&ings of their estate' Su#h pro#eedings are primaril- governed b- spe%ial rules found under Rules /( to .* of the 0ules, although rules governing or&inar< a%tions ma-, as far as pra#ti#able, appl- supple%oril Among these spe#ial rules, Se%. /+ Rule 1= of R C provi&es the rule in &ealing 7ith se%ure& %lai,s against the estate. Se#' 8, 0ule 9: of 0;*= Mor%gage de+% due ,rom es%a%e' P ! creditor holding a claim against the deceased secured by a mortgage or other collateral security, ma- a+andon %he securi%- and P OSEC?@E his claim in %he manner pro&ided in %his rule, and share in %he general dis%ri+u%ion o, %he asse%s o, %he es%a%e. "# he ma- FO ECLOSE his mor%gage or realize upon his securi%-, +- AC@AO" in cour%, ma4ing %he e'ecu%or or adminis%ra%or a par%- de,endan%, and i, %here is a /udgmen% ,or a de,icienc-, a,%er %he sale o, %he mor%gaged premises, or %he proper%- pledged, in %he ,oreclosure or o%her proceeding %o realize upon %he securi%-, he ma- CLAAM BAS DEFACAE"CC /udgmen% in %he manner pro&ided in %he preceding sec%ion. "# he ma- rel- upon his mor%gage or o%her securi%- alone, and FO ECLOSE %he same a% an- %ime *i%hin %he period o, %he s%a%u%e o, limi%a%ions, and in %ha% e&en% he shall no% +e admi%%ed as a credi%or, and shall recei&e no share in %he dis%ri+u%ion o, %he o%her asse%s o, %he es%a%e. but nothing herein #ontained shall prohibit the e4e#utor or administrator from redeeming the propert- mortgaged or pledged, b- pa-ing the debt for ,hi#h it is held as se#urit-, under the dire#tion of the #ourt, if the #ourt shall ad5udged it to be for the best interest of the estate that su#h redemption shall be made' *;.!0AA! ;F 7H! 0@L!= 7he rule spea)s of DA creditor holding a claim agains% %he deceased secured +- a mor%gage or o%her colla%eral securi%-E, thus it %overs all se%ure& %lai,s, *he%her +- mor%gage or an- o%her ,orm o, colla%eral, ,hi#h a #reditor maenfor#e against the estate of the de#eased debtor' o /t does not narro,l- appl- onl- to ,ortgages ,a&e 3< the a&,inistrator over an- propert- belonging to the estate of the de#edent %as #laimed b- *A&' +ote though that mortgages of estate propert- e4e#uted b- the administrator are also governed b- 0ule 9G, #aptioned as DSales, Mor%gages, and O%her Encum+rances o, Proper%- o, Deceden%.E $%B v. C! relied b- *A did not limit the s#ope of the rule as it onl- stated that Se#' 8, 0ule 9: e>uall< applies to #ases ,here the adminis%ra%or mor%gages %he proper%- o, %he es%a%e %o secure %he loan he o+%ained. /t ,as a ruling of in#lusion and not one ,hi#h #reated a distin#tion' !hus+ Se%. /+ Rule 1= applies to: A %re&itor:s %lai, against the mortgaged propert- of the de#eased debtor, as in this #ase A+" ,ortgages ,a&e 3< the a&,inistrator, as that in the P"! #ase' ( Re,e&ies? ptions 3< Se%ure& Cre&itor un&er Se%. /+ Rule 1= %a& ,aive the mortgage and claim %he en%ire de+% from the estate of the mortgagor as an ordinar- #laim6

%+& fore#lose the mortgage /udiciall- and prove the defi#ien#- as an ordinar- #laim6 and %c& rel- on the mortgage e4#lusivel-, or other se#urit- and ,oreclose the same before it is barred b- pres#ription, *i%hou% %he righ% %o ,ile a claim ,or an- de,icienc 0@L!= !hese ,a< 3e AL!ER#A!"@ELY a&opte& for the satisfa%tion of his in&e3te&ness. Ho7ever+ these re,e&ies are &istin%t+ in&epen&ent an& ,utuall< EACLUS"@E fro, ea%h otherB the ele%tion of one effe%tivel< BARS the e8er%ise of the others. (an) of Ameri#a v' Ameri#an 0ealt- *orporation %,3 respe#t to real properties&= /n our 5urisdi#tion, the remedies available to the mortgage #reditor are deemed AL!ER#A!"@E an& not %u,ulative. #ota3l<+ an ele%tion of one re,e&< operates as a CA"@ER of the other' Chen Re,e&< Dee,e& Ele%te& 3< Mortgage Cre&itor o #?DACAAL FO ECLOS? E$ @pon the filing of the suit for #olle#tion R upon the filing of the #omplaint in an a#tion for fore#losure of mortgage, pursuant to 0ule :9 of the 1GG8 0ules of *ivil $ro#edure' o EF@ A#?DACAAL FO ECLOS? E$ @pon filing of the petition not ,ith an- #ourt of 5usti#e but ,ith the ;ffi#e of the Sheriff of the provin#e ,here the sale is to be made, in a##ordan#e ,ith the provisions of A#t +o' 313<, as amended b- A#t +o' D119' !hir& ption in%lu&es E8tra9u&i%ial $ore%losure 7hird remed- includes the option of e8tra29u&i%iall< fore%losing the ,ortgage un&er A%t #o. (0() , as availed of b- Manila (an)ing *orp' in this #ase' Un&er E8tra9u&i%ial $ore%losure 3< Cre&itor: #o right to Defi%ien%< Ho,ever, the plain result of adopting the last mode of fore#losure is that the %re&itor 7aives his right to re%over an< &efi%ien%< from the estate' P"! v CA #ase, #iting Perez &. P"! ,hi#h overturned earlier Pasno &. a&ina ruling= o Perez &. P"! reversing Pasno &s. a&ina= After e4amination, ,e observe that the dissenting opinion in our ruling in Pasno &. a&ina is more in #onformit- ,ith reason and la,' 3rd remed- to ,it= (>) %o rel- on %he mor%gage e'clusi&el-, ,oreclosing %he same a% an- %ime +e,ore i% is +arred +prescrip%ion, without right to file a claim for any deficiency , Ma5orit- opinion in Pasno &. a&ina, in reJuiring a 5udi#ial fore#losure, virtuall- ,ipes out the 3rd alternative #on#eded b- the 0ules to the mortgage #reditor, and which would precisely include e tra&'udicial foreclosures b- con%ras% *i%h %he 6nd al%erna%i&e. o !he plain result of a&opting the last ,o&e of fore%losure is that the %re&itor 7aives his right to re%over an< &efi%ien%< fro, the estate. o $ollo7ing the $ere( ruling that the (r& ,o&e in%lu&es e8tra9u&i%ial fore%losure sales+ the result of e8tra9u&i%ial fore%losure is that the %re&itor 7aives an< further &efi%ien%< %lai,. A%t. (0() vs. Se%. /+ Rule 1=: )n *andem %hehe& ;peration of A#t +o' 313< does not entirel- dis#ount the appli#ation of Se#' 8, 0ule 9:, or vi#e versa' 0ather, the 2 #omplement ea#h other ,ithin their respe#tive spheres of operation' Se%. /+ Rule 1=+ R C A%t. #o. (0()

La-s do,n the options for the se#ured #reditor to #laim against After 3rd option is #hosen %under Se#' 8, 0ule 9:&, the pro%e&ure the estate and, a##ording to 5urispruden#e, the availment of the governing the manner in ,hi#h the e4tra 5udi#ial fore#losure should 3rd option bars him from #laiming an- defi#ien#- amount pro#eed ,ould still be governed b- the provisions of A#t +o' 313<' Aoverns the para,eters an& the e8tent to 7hi%h a %lai, ,a< Sets out the spe%ifi% pro%e&ure to 3e follo7e& 7hen the %re&itor 3e a&van%e& against the estate su3se>uentl< %hooses the (r& option P spe#ifi#all-, that of e4tra 5udi#iall- fore#losing real propert- belonging to the estate'

7he appli#ation of the pro#edure under A#t +o' 313< must be #on#ordant ,ith Se#' 8, 0ule 9: as the latter is a spe%ial rule appli%a3le to %lai,s against the estate' At the same time, sin#e Se#' 8, 0ule 9: does not detail the pro#edure for e4tra 5udi#ial fore#losures, the for,alities governing the manner of availing of the 3rd option P such as %he place *here %he applica%ion ,or e'%ra-/udicial ,oreclosure is ,iled, %he reGuiremen%s o, pu+lica%ion and pos%ing and %he place o, sale P must be governed b- A#t +o' 313<' Case at Bar Manila (an)ing *orp' sought to e4tra 5udi#iall- fore#lose the mortgage of the properties previousl- belonging to Sps' Maglasang and, therefore, availed of the thir& option. 7hus, it is no, pre#luded from filing a suit to re#over an- defi#ien#- amount as earlier dis#ussed' /t did not e8er%ise the first option of direc%l- ,iling a claim agains% %he es%a%e, as Heirs of Maglasang assert, sin#e it merelnotified the probate #ourt of the outstanding amount of its #laim against the estate of Flaviano and that it ,as #urrentl- restru#turing the a##ount' %sinama 4o lang -ung ,oo%no%e pero di rele&an%. H-ung na4a+old a%a -ung dapa% gina*a ng Manila !an4ing Corp. para sa+ihing 0s% op%ion& o FOO@"O@E$ Manila !an4ing Corp. did no% ,ile a claim agains% %he es%a%e since i%s no%ice de&ia%es ,rom %he proper charac%eriza%ion under Sec. 1, ule 3= o, OC *hich se%s ,or%h %he manner %hrough *hich a claim agains% %he es%a%e ma+e ,iled$ o A claim ma- +e ,iled by delivering the same with the necessary vouchers to the clerk of court and by serving a copy thereof on the e ecutor or administrator.

)f the claim be founded on a bond, bill, note, or any other instrument, the original need not be filed, but a copy thereof with all indorsements shall be attached to the claim and filed %here*i%h. On demand, ho*e&er, o, %he e'ecu%or or adminis%ra%or, or +- order o, %he cour% or /udge, %he original shall +e e'hi+i%ed, unless i% +e los% or des%ro-ed, in *hich case %he claiman% mus% accompan- his claim *i%h a,,ida&i% or a,,ida&i%s con%aining a cop- or par%icular descrip%ion o, %he ins%rumen% and s%a%ing i%s loss or des%ruc%ion. o +hen the claim is due, it must be supported by affidavit stating the amount 'ustly due, that no payments have been made thereon which are not credited, and %ha% %here are no o,,se%s %o %he same, %o %he 4no*ledge o, %he a,,ian%. o A, %he claim is no% due, or is con%ingen%, *hen ,iled, i% mus% also +e suppor%ed +- a,,ida&i% s%a%ing %he par%iculars %hereo,. o <hen %he a,,ida&i% is made +- a person o%her %han %he claiman%, he mus% se% ,or%h %herein %he reason *h- i% is no% made +%he claiman%. o @he claim once ,iled shall +e a%%ached %o %he record o, %he case in *hich %he le%%ers %es%amen%ar- or o, adminis%ra%ion *ere issued, al%hough %he cour%, in i%s discre%ion, and as a ma%%er o, con&enience, ma- order all %he claims %o +e collec%ed in a separa%e ,older. 4-6 !4tra 5udi#ial fore#losure is valid' %di mas-ado rela%ed sa %opic +u% read na din& Heirs of Maglasang: !4tra 5udi#ial fore#losure of the sub5e#t properties ,as null and void sin#e the same ,as #ondu#ted in violation of the stipulation in the REM %ontra%t stating that %he auc%ion sale should +e held in %he capi%al o, %he pro&ince *here %he proper%ies are loca%ed, i.e., Pro&ince o, Le-%e (@aclo+an Ci%- sa+i sa +a+a-capi%al +a H%o ng Le-%eI). o S7/$@LA7/;+= A% is here+- agreed %ha% in case o, ,oreclosure o, %his mor%gage under Ac% >0>9, %he auction sale shall be held a% %he capi%al o, %he pro&ince i, %he proper%- is *i%hin %he %erri%orial /urisdic%ion o, %he pro&ince concerned, "# shall +e held in %he ci%- i, %he proper%- is *i%hin %he %erri%orial /urisdic%ion o, %he ci%- concerned' SC: "isagrees' 7he stipulation under the 0!M #ontra#t la%ks 7or&s of e8%lusivit< ,hi#h ,ould bar an- other a##eptable fora ,herein the said sale ma- be #ondu#ted' Absent su#h Guali,-ing or res%ric%i&e *ords to indi#ate the e4#lusivit- of the agreed forum, the stipulated pla#e should onl- be as an a&&itional+ not a li,iting venue' 7he venue then ,ould be alternative bet,een that stated in the la, or rule governing the a#tion or the one agreed in the #ontra#t' 7hus, the stipulate& venue an& that provi&e& un&er A%t #o. (0() %an 3e applie& alternativel<. Se#' 2 of A#t +o' 313< allo,s the fore#losure sale to be done within the province where the property to be sold is situated. S!*' 2 of A#t +o' 313<= Said sale canno% +e made legall- outside of the province *hich %he proper%- sold is si%ua%ed. and in case %he place *i%hin said pro&ince in *hich %he sale is %o +e made is su+/ec% %o s%ipula%ion, such sale shall +e made in said place or in %he municipal +uilding o, %he municipali%- in *hich %he proper%- or par% %hereo, is si%ua%ed. *ase at (ar= Au#tion sale ,as #ondu#ted in ;rmo# *it-, ,hi#h is ,ithin the territorial 5urisdi#tion of the $rovin#e of Le-te, thus there is suffi#ient #omplian#e ,ith the above #ited reJuirement' S@MMA0> !4tra 5udi#ial fore#losure sub5e#t of this #ase ,as properl- #ondu#ted in a##ordan#e ,ith the formalities of A#t +o' 313<' 7he same ,as a valid e4er#ise of Manila (an)ingQs third option under Se#tion 8, 0ule 9:' Manila (an)ing #annot, ho,ever, file an- suit to re#over an- defi#ien#- amount sin#e it effe#tivel- ,aived its right thereto ,hen it #hose to avail of e4tra 5udi#ial fore#losure as 5urispruden#e instru#ts' D"S' S"!"@E: $etition $A07L> A0A+7!"' 7he #omplaint for the re#over- of the defi#ien#- amount after e4tra 5udi#ial fore#losure filed b- Manila (an)ing *orporation "/SM/SS!"' 7he e4tra 5udi#ial fore#losure of the mortgaged properties, ho,ever, stands'