TOMAS ANG vs.

ASSOCIATED BANK FACTS: Respondent Associated Bank (formerly Associated Banking Corporation and now known as United Overseas Bank Philippines) filed a collection suit against Antonio Ang Eng Liong and petitioner Tomas Ang for the two (2) promissory notes that they executed as principal debtor and co-maker, respectively. In the Complaint, respondent Bank alleged that ANTONIO ANG ENG LIONG and petitioner TOMMAS ANG obtained a loan of P50,000, evidenced by a promissory note and P30,000. As agreed, the loan would be payable, jointly and severally. Despite repeated demands for payment, Antonio Ang Eng Liong and Tomas Ang failed and refused to settle their obligation, resulting in a total indebtedness of P539,638.96 as of July 31, 1990. Among the defenses raised by petitioner Tomas Ang is that the bank knew that he did not receive any valuable consideration for affixing his signatures on the notes but merely lent his name as an accommodation party.

ISSUE: WON Tomas Ang may be held accountable despite only being an accommodation party in the agreement? HELD: Yes. The Court ruled that the relation between an accommodation party and the accommodated party is one of principal and surety the accommodation party being the surety. As such, he is deemed an original promisor and debtor from the beginning; he is considered in law as the same party as the debtor in relation to whatever is adjudged touching the obligation of the latter since their liabilities are interwoven as to be inseparable.