BANKING LAWS

Assignment for 19 August 2017

GENERAL BANKING LAW (Republic Act No. 8791)
Banks and Nature of Banking Business
-Sections 2 and 3 (RA No 8791)
1. Simex International v. CA, GR No. 88013, 89 SCRA 360
2. Philippine Banking Corporation v. CA, GR No. 127469, 419 SCRA 487
3. Consolidated Bank and Trust Corporation v. Court of Appeals, G.R. No. 138569, 410 SCRA 562
4. Manlapat v. CA, GR 125585, GR No. 125585, 459 SCRA 412
5. BPI v. Court of Appeals, 326 SCRA 641
6. Tan v. Court of Appeals, G.R. No. 108555, 239 SCRA 310
7. Spouses Omengan v. PNB, GR No, 161319, January 23, 2007
8. Serrano v. Central bank, GR No. L-30511, 96 SCRA 96
9. Central Bank v. Citytrust Banking Corporation, GR No. 141835, 578 SCRA 27
10. PNB v. Raymundo, GR 208672, December 7, 2016
11. PNB v. Vila. GR No. 213241, August 1, 2016
12. Gumabon v. PNB, GR 202514, July 25, 2016

In connection with Section 3, read the following laws:

1. RA No. 7906 (Thrift Banks Act, Section 2);
2. RA No. 7353 (Rural Banks Act, Section 2);

No prescribed textbook.
Can use any banking book as reference material, such as:
1. Banking Laws and Jurisprudence by Efren L. Dizon and Efren Vincent Dizon;
2. The Philippine General Banking Law (Annotated) by Rafael Morales;
3. The General Banking Law Annotated- BSP
Sept 9 Assignment

I. Authority of BSP
i. Chapter II, Sections 4-7, GBL
ii. Subsidiaries and affiliates of banks (See Section 25, RA No. 7653);
iii. Quasi-banks (See also Section 95, RA. No 7653; Elements of Quasi Banking; Manual of
Regulations for Banks Section X234, including Subsection X234.1-234.3)
iv. Case: Baas v. Asia Pacific Corporation, GR 128703, October 18, 2000

II. Organization, Management and Administration of Banks, QB and Trust Entities

i. Chapter III, Sections 8-13, GBL
1. Organization, Issuance of Stocks; Treasury Shares (Sections 8-10, GBL)
2. Manual of Regulations for Banks, Section X104
3. Foreign Stockholdings (Sections 11-13, GBL)
4. Foreign Banks (Section 73, GBL)
5. Foreign Bank Liberalization Act (RA 7721, as amended by RA No. 10641)
ii. Case: GSIS Family Bank v. BPI Family Bank, G.R. No. 175278. September 23, 2015.
iii. Chapter III, Sections 15-17, GBL -Board of Directors
1. Qualifications-MORB Section X141; X141.1; X141.2 (skim through)
2. Disqualifications MORB Section X143.1 (Skim through)
Sept 23 Assignment

Concentrate on the Cases and the related provisions in the GBL.

We will gloss over equity investments.

III. Deposit, Loans and Other Operations

i. Powers of Universal banks (Section 23 and 29, GBL)
ii. Equity Investments (Universal Banks (Section 24, 25, 26, 27)
iii. Section 28 Equity Investment in Quasi Banks
iv. Section 29 Powers of a Commercial Bank
1. Powers of a corporation
2. Enumerated powers
3. Cases:
a. Reliance Commodities .v Daewoo Industries (GR 100831, Dec 17,
1993
b. Prudential Bank .v IAC, GR 74888, Dec. 8, 1992
c. Bank of America, NT v. CA, GR 105395, Dec, 10, 1993
v. Sections 30-32 Equity Investments of Commercial Banks

IV. Provisions Applicable to All Banks, QBs and Trust Entities

i. Chapter III, Sections 33-46
ii. MORB, Section X201- X203 (Demand Deposits) and Section X303 (SBL)
iii. Check Section 32, Corporation Code on Self dealing transactions
iv. Cases:
1. People v. Go, G.R. No. 191015. August 6, 2014
2. Spouses Ginorella v. PNB, G.R. No. 194515. September 16, 2015.
3. Go v. Bangko Sentral, GR 178429, October 23, 2009
4. Soriano v. People, GR No. 162336, Feb 1, 2010
5. Central Bank v. CA, GR L-45710, October 3, 1985
6. PNB v. IAC, GR No. 126908, Jan 16, 2003
7. Union Bank v. CA, GR 164910, Sept 30, 2005
8. Floirendo v. Metrobank, GR 148625. Sept 3, 2007
9. Macalinao v. BPI, GR No. 175490, Sept 17, 2009
10. Spouses Jonsay v. Solidbank, GR 206459, April 6, 2016
11. PNB v. Heirs of Benedicto & Azucena Alonday, GR 171865, October 12, 2016
Sept 30 Assignment

V. Provisions Applicable to All Banks, QBs and Trust Entities

i. Chapter III, Sections 47-53
ii. Judicial foreclosure Rule 68 of Rules of Court
iii. Extrajudicial foreclosure Act No. 3135, as amended by Act No. 4118
iv. Cases:
1. Rosales v. Suba, GR No. 137792, August 12, 2003
2. Union Bank v. CA, GR No. 134068, June 25, 2001
3. Serrano v. CA, GR No. 133883, December 10, 2003
4. Mallari v, GSIS, GR No. 157659, January 25, 2010
5. Cuada v. Drilon, G.R. No. 159118, June 24, 2004
6. Equitable PCI Bank v. DNG Realty and Development Corp., GR 168672, August
2010
7. Register of Deeds of Manila v. China Banking Corporation, GR L11964, April
28, 1962
8. Philippine Commercial International Bank (formerly Insular Bank of Asia and
America), v CA, GR 121413, January 29, 2001
9. Bangko Sentral v. Hon, Valenzuela, GR No. 184778, October 2, 2009.
10. Spouses Rodolfo and Marcelina Guevarra v. The Commoner Lending Corp.,
G.R. No. 204672. February 18, 2015.
11. White Marketing Development Corporation v. Grandwood Furniture and
Woodworks, GR 222407, November 23, 2016
12. Metrobank v. Chuy Lu Tan,
BANK SECRECY LAWS

Laws on Secrecy of Bank Deposits

1. R.A. No 1405
2. R.A. No. 6426 (Foreign Currency Deposit Act)
i. Section 55(b), R.A. No 8791
ii. Section 21(a)(2), R.A. No. 7906; Section 26(a)(2) of R.A. No. 7353
iii. Exceptions under other laws
3. Section 26, R.A. No. 7653
4. Section 6(F), NIRC, as amended
5. R.A. No. 6770, Section 15 (Ombudsman Act)
6. R.A. No, 9160, As amended (AMLA), Section 9, 11
7. Cases:
Mellon Bank, NA v. Magsino, 190 SCRA 633 (1990)
Union Bank v. CA, GR 134699, December 23, 1999
Marquez v. Desierto, 359 SCRA 772 (2001)
PNB v. Gancayco, 122 Phil 503 (1965)
Ejercito v. Sandiganbayan, 509 SCRA 190 (2006)
Salvacion v CBP, 278 SCRA 27 (1997)
China Banking Corporation v. CA, 511 SCRA 110 (2006)
The New Central Bank Act, Republic Act No. 7653

I. Creation, Responsibilities and Corporate Powers

a. Chapter I, Sections 2, 3, 5, NCBA
b. Constitutional Mandate, Article XII, Section 20, Philippine Constitution
c. Cases:
i. Monetary Board v. Philippine Veterans Bank, G.R. No. 189571. January 21, 2015.
ii. Bankers Association of the Philippines v. Comelec, G.R. No. 206794. November
26, 2013
iii. Bank of Commerce v. Planters Development Bank and Bangko Sentral Ng Pilipinas,
G.R. Nos. 154470-71, September 24, 2012
iv. Advocates of Truth and Lending Act v. BSP MB, G.R. No. 192986. January 15,
2013.

II. Organizational Structure (Select provisions)

a. Sections 6-11; Sections 15-18

b. Cases:
i. Tarrosa v. Singson, GR 111243, May 25, 1994
ii. Central Bank (now BSP) Employees Association v. BSP, GR 148208, December 1,
2004
iii. BSP v. Legaspi, GR 205966, March 2, 2016
Nov 11 Assignment

Central Bank v. CA, GR 76119, Mar 30, 1993

Rural Bank of San Miguel v. MB, GR 150886, Feb 16, 2007
Banco Filipino Savings and Mortgage Bank v MB, Dec 11, 1991
General Bank and Trust Company v. Central Bank, GR 152551, June 15, 2006
UCPB v. Ganzon, GR Nos. 168859 and 168897, June 30, 2009
Balayan Bay Rural Bank v. National Livelihood Development Corporation, G.R. No.
194589, September 21, 2015
Vivas v. MB, G.R. No. 191424. August 7, 2013
Busuego v. CA, GR 95326, March 11, 1999
BDO v Republic, GR 198756, Aug 16, 2016

Busuego v CA GR No. 95326 Mar 11 1999

Subido v CA GR 216914 Dec 6 2016

GENERAL BANKING LAW

NEW CENTRAL BANK ACT