The document summarizes 4 cases related to trust receipt agreements:
1) SPOUSES VINTOLA VS INSULAR BANK - The Court ruled the bank did not become the owner of goods entrusted by spouses Vintola, and the trust receipt arrangement did not convert the bank into an investor, only a lender.
2) MELVIN COLINARES VS COURT OF APPEALS - The Court ruled the transaction between petitioners and a bank was a simple loan, not a trust receipt transaction.
3) ALLIED BANKING CORP VS SECRETARY ORDOÑEZ - The Court ruled penal provisions of Presidential Decree 115 apply even if goods covered by
Original Description:
Original Title
SPOUSES TIRSO VINTOLA AND LORETA DY VS INSULAR BANK OF ASIA AND AMERICA
The document summarizes 4 cases related to trust receipt agreements:
1) SPOUSES VINTOLA VS INSULAR BANK - The Court ruled the bank did not become the owner of goods entrusted by spouses Vintola, and the trust receipt arrangement did not convert the bank into an investor, only a lender.
2) MELVIN COLINARES VS COURT OF APPEALS - The Court ruled the transaction between petitioners and a bank was a simple loan, not a trust receipt transaction.
3) ALLIED BANKING CORP VS SECRETARY ORDOÑEZ - The Court ruled penal provisions of Presidential Decree 115 apply even if goods covered by
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
The document summarizes 4 cases related to trust receipt agreements:
1) SPOUSES VINTOLA VS INSULAR BANK - The Court ruled the bank did not become the owner of goods entrusted by spouses Vintola, and the trust receipt arrangement did not convert the bank into an investor, only a lender.
2) MELVIN COLINARES VS COURT OF APPEALS - The Court ruled the transaction between petitioners and a bank was a simple loan, not a trust receipt transaction.
3) ALLIED BANKING CORP VS SECRETARY ORDOÑEZ - The Court ruled penal provisions of Presidential Decree 115 apply even if goods covered by
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
SPOUSES TIRSO VINTOLA AND LORETA DY VS INSULAR BANK OF ASIA AND
AMERICA, 150 SCRA 578
FACTS: Petitioner spouses Vintola owns and manages manufacturing of raw sea shells into finished products, under their business name, Dax kin International. They applied for domestic letter of credit by respondent Insular Bank of Asia and America which was granted. Then, executed a Trust Receipt Agreement with Insular bank stipulating that the Vintola’s shall hold the goods in trust for IBAA. Having defaulted in its payment, Vintola’s offered to return the goods to IBAA, but the latter refused.Due to their continued refusal, IBAA charged them with estafa. The Court acquitted the Vintolas’s. ISSUE: Whether or not the goods entrusted by Vintola’s to IBAA became the real owners thereof. RULING: No. Insular bank of Asia and America did not become the holder or real owner of the goods. The Vintola’s retained ownership of the goods. The Court held that the trust receipt arrangement did not convert the IBAA into an investor, it remained a lendor and creditor. Under the law, a trust receipt is a document wherein the entrustee binds himself to hold the designated goods, documents or instruments in trust for the entruster to sell or otherwise dispose of the goods, to the amount owing to the entruster.
MELVIN COLINARES AND LORDINO VELOSO VS COURT OF APPEALS AND THE
PEOPLE OF THE PHILIPPINES, 339 SCRA 609 FACTS: Petitioners Melvin Colinares and Lordino Veloso were contracted by the Carmelite Sisters of Cagayan de Oro City to renovate the latter’s convent. In order to ensue the construction of the convent, petitioner’s applied for a commercial letter of credit with Philippine Banking Corporation. The latter approved the credit to cover the full invoice value of the goods to be used in the construction. Petitioners signed a pro-forma trust receipt as security. Petitioners failed to pay on time, hence Philippine Banking Corporation instituted a suit against petitioners charging them with violation of the Trust Receipts Law or Presidential Decree 115. The trial court rendered its decision against petitioners, contending that the transaction instituted between them is a trust receipt transaction. On appeal, Court of Appeals modified the lower’s court ruling by increasing the penalty to six (6) years. Hence, the petition. ISSUE: Whether or not the transaction made was a trust receipt transaction or simple loan? RULING: A simple loan. The Court held that the transaction entered into between the petitioners and bank was not a trust receipt transaction but a simple loan. Petitioners were acquitted. ALLIED BANKING CORPORATION VS SECRETARY SEDFREY ORDOÑEZ AND ALFREDO CHING, 192 SCRA 246 FACTS: Respondent Alfredo Ching duly authorized officer of Philippine Blooming Mills (PBM) applied for the issuance of commercial letters of credit with petitioner Allied banking Corporation. The latter issued an irrevocable letter of credit in favor of Nikko Industry wherein it drew four (4) drafts which were accepted by Blooming Mills and duly honored and paid by Allied Bank. In order to secure the payment of the loan, Blooming Mills as entrustee, executed four (4) Trust Receipt Agreements acknowledging Allied bank’s ownership of the goods and Blooming Mills obligation to turn over the proceeds of the sale of the goods if sold or to return the same within the stated period. Blooming Mills failed to pay its obligation, thereby prompting petitioner bank to file a criminal complaint for violation of Presidential Decree 115. ISSUE: Whether or not the penal provision of Presidential decree 115 apply when the goods covered by a Trust Receipt do not form part of the finished products which are ultimately sold but are instead, utilized in the operation of the equipment of entrustee-manufacturer? RULING: Yes. In trust receipts, there is an obligation to repay the entruster. The entrustee binds himself to sell or otherwise dispose of the entrusted goods with the obligation to turn over to the entruster the proceeds if sold, or return the goods if unsold or not otherwise disposed of according to the terms and conditions of the trust receipt.Petition granted.