Enrique P.

Montinola
vs.
Philippine National Bank

Reported by: Yvette Lim

FACTS OF THE CASE

In the months of April

to May 1942, the
provinces of Misamis
Oriental and Lanao is
on the verge of the
Japanese Occupation.

FACTS OF THE CASE

MARIANO V. RAMOS

Disbursing Officer
of the USAFFE
MISSION 1:
To procure cash
advance amounting
to P800,000 for
USAFFE

Pedro
Encarnacion
Provincial Treasurer of
Lanao

P300,000 in
emergency notes
P500,000 check

MISSION 2:
Cash the P500,000
check
Gave:
P400,000 in
Emergency Notes
P100,000 Check No.
UBALDO D. LAYA
1382 drawn on PNB
Provincial Treasurer of
Misamis Oriental

FACTS OF THE CASE

MISSION 3
Cash the
P100,000 PNB
Check

FACTS OF THE CASE

INDORSED THE
PNB CHECK TO
ENRIQUE
MONTINOLA

After
incarceration:
December
1944 -January

MONTINOLAS STORY
On June 1944, Ramos needing
money to buy medicine and
food offer to sell the check.
Agreed to indorse WHOLE
check for 850,000 Japanese
Military Notes
Payable in 5 installments
Balance of 400,000 in kind
EVIDENCED BY THE
ENDORSEMENT APPEARING AT
THE BACK OF THE CHECK

EXHIBIT A-1
Pay to the order of
Enrique P.
Montinola
517 Isabel Street
M.V.
RAMOS

MONTINOLAS STORY
That the check is partly
burned blotted, and mutilated
because Ramos demanded
the return of the checks with
bodily harm
The face of the instrument the
words AGENT OF PHIL.
NATIONAL BANK appears

RAMOSS STORY
Agreed to indorse only
P30,000 out of the P100,000.
90,000 Jap Mil Notes
Two checks: 20,000 and
25,000
Leaving 45,000 unpaid

Pay to the order of Enrique

P. Montinola P30,000 only.
The
balance
to
be
deposited in the Philippine
National Bank to the credit
of M.V. Ramos.

COURTS RESOLUTION
CFI

WITNESS

COURTS RESOLUTION
1. The endorsement does not cover the
whole check but P30,000 only.
2. The phrase Agent, Phil. National
Bank were added or placed in the
instrument after it was issued by
Provincial Treasurer Laya.

ISSUE

W/N MONTINOLA IS A HOLDER IN

DUE COURSE?

LAW
Sec. 52.What constitutes a holder in due course.- A
holder in due course is a holder who has taken the
instrument under the following conditions:
(a) That it is complete and regular upon its face;
(b) That he became the holder of it before it was
overdue, and without notice that it has been
previously dishonored, if such was the fact;
(c) That he took it in good faith and for value;
(d) That at the time it was negotiated to him, he had
no notice of any infirmity in the instrument or defect
in the title of the person negotiating it.

(a) That it is complete and

regular upon its face;
COMPLETE/INCOMPLETE
Material particular BLANK (amount, person
to be paid)
Delivered
Follows requisites in Section 1
REGULAR
Alteration on the FACE (which can be
identified by mere inspection)
ALTERATION WHEN THE PHRASE AGENT,
PHIL. NATIONAL BANK WAS ADDED

(b) That he became the holder of it

before it was overdue, and without
notice that it has been previously
dishonored, if such was the fact;
OVERDUE
Became a holder after maturity
HOLDER
As the payee or indorsee of a bill or note

Montinola received the check, it was

long over due;
Montinola is only an assignee;

(c) That he took it in

good faith and for value;

GOOD FAITH

Montinola is not in good faith since

he has not paid the full amount of
90,000 JMN.
Montinola knew that there is a
possibility the check is worthless
(Emergency Notes are not used
during Japanese occupation)

(d) That at the time it was

negotiated to him, he had no
notice of any infirmity in the
instrument or defect in the
title of the person negotiating
it.

DEFECT
Montinola knew the check was issued
to Ramos not in his PRIVATE
CAPACITY but as disbursing officer.

RULING

not

MONTINOLA IS
A HOLDER IN
DUE COURSE