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    G.R. No. 152359, Development Bank of The Philippines, Petitioner, vs. West Negros College, Inc., Respondent. Bellosillo, J.: Doctrine

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    The document discusses a case regarding the redemption of properties that were foreclosed by the Development Bank of the Philippines (DBP). Bacolod Medical Center (BMC) obtained a loan from DBP secured by a mortgage on two parcels of land. For failure to pay the loan, DBP foreclosed on the properties. Afterwards, BMC assigned its redemption rights to West Negros College. The Supreme Court held that (1) the properties could still be redeemed since the statutory period for redemption could be extended by agreement, as DBP had accepted installment payments beyond the redemption deadline, effectively agreeing to an extension, and (2) West Negros College could redeem the properties by paying the outstanding loan balance plus interest,

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    G.R. No. 152359, Development Bank of The Philippines, Petitioner, vs. West Negros College, Inc., Respondent. Bellosillo, J.: Doctrine

    Uploaded by

    sophia
    218 views2 pages
    The document discusses a case regarding the redemption of properties that were foreclosed by the Development Bank of the Philippines (DBP). Bacolod Medical Center (BMC) obtained a loan from DBP secured by a mortgage on two parcels of land. For failure to pay the loan, DBP foreclosed on the properties. Afterwards, BMC assigned its redemption rights to West Negros College. The Supreme Court held that (1) the properties could still be redeemed since the statutory period for redemption could be extended by agreement, as DBP had accepted installment payments beyond the redemption deadline, effectively agreeing to an extension, and (2) West Negros College could redeem the properties by paying the outstanding loan balance plus interest,

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    dbp v west negros

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    The document discusses a case regarding the redemption of properties that were foreclosed by the Development Bank of the Philippines (DBP). Bacolod Medical Center (BMC) obtained a loan from DBP secured by a mortgage on two parcels of land. For failure to pay the loan, DBP foreclosed on the properties. Afterwards, BMC assigned its redemption rights to West Negros College. The Supreme Court held that (1) the properties could still be redeemed since the statutory period for redemption could be extended by agreement, as DBP had accepted installment payments beyond the redemption deadline, effectively agreeing to an extension, and (2) West Negros College could redeem the properties by paying the outstanding loan balance plus interest,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    218 views2 pages

    G.R. No. 152359, Development Bank of The Philippines, Petitioner, vs. West Negros College, Inc., Respondent. Bellosillo, J.: Doctrine

    Uploaded by

    sophia
    The document discusses a case regarding the redemption of properties that were foreclosed by the Development Bank of the Philippines (DBP). Bacolod Medical Center (BMC) obtained a loan from DBP secured by a mortgage on two parcels of land. For failure to pay the loan, DBP foreclosed on the properties. Afterwards, BMC assigned its redemption rights to West Negros College. The Supreme Court held that (1) the properties could still be redeemed since the statutory period for redemption could be extended by agreement, as DBP had accepted installment payments beyond the redemption deadline, effectively agreeing to an extension, and (2) West Negros College could redeem the properties by paying the outstanding loan balance plus interest,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    G.R. No.

    152359, May 21, 2004

    DEVELOPMENT BANK OF THE PHILIPPINES, petitioner, vs.  WEST NEGROS COLLEGE, INC., respondent.

    BELLOSILLO, J.:

    DOCTRINE

    The one-year period for the exercise of the right of redemption is subject to the provisions of special
    laws. The statutory period of redemption is only directory and can be extended by agreement of the
    parties but two requisites must be established, namely: (a) voluntary agreement of the parties to extend
    the redemption period; and (b) the debtor’s commitment to pay the redemption price on a fixed date.

    FACTS

    Bacolod Medical Center (BMC) obtained a loan from DBP, secured by a mortgage on the two (2) parcels
    of land. For failure of BMC to pay the loan, DBP instituted an extrajudicial foreclosure of the mortgage
    under Act 3135 (1924). The mortgaged properties were sold at public auction where DBP emerged as
    the highest and only bidder.

    Afterwards, BMC assigned to respondent West Negros College its interest in the properties foreclosed
    by DBP and vested upon the assignee the right to redeem them.

    West Negros College requested for the issuance of the certificate of redemption. DBP objected to the
    issuance of the said certificate. West Negros College alleged full payment of the redemption price i.e.,
    the amount of purchase with one per cent (1%) monthly interest thereon including other expenses
    defrayed by the purchaser at the extrajudicial sale. DBP, on the other hand, claimed that proper
    redemption under its charter could only take place when the total outstanding loan had been satisfied.

    In its Decision, the Court declared that "in redeeming the foreclosed property respondent West Negros
    College as assignee of Bacolod Medical Center should pay the balance of the amount owed by the latter
    to petitioner DBP with interest thereon at the rate agreed upon as of the date of the public auction.

    West Negros filed the present motion for reconsideration.

    ISSUE

    1. Whether or not the properties can still be redeemed.

    HELD

    1. Yes, the subject properties may still be redeemed.


    It should be recalled that the certificate of sale in favor of DBP was registered with the Registry of
    Deeds on July 11, 1990. Under Executive Order No. 81, the mortgagor whose property has been
    extra-judicially sold at public auction shall have the right to redeem the property within one (1) year
    counted from the date of registration of the certificate of sale.

    The right of legal redemption must be exercised within specified time limits. However, the statutory
    period of redemption can be extended by agreement of the parties. It bears noting that DBP
    accepted installment payments of 20% of the compromise amount beyond the July 11, 1991
    deadline for redeeming the properties. Effectively, DBP and BMC agreed to the extension of the
    redemption period. Significant, too, is the fact that DBP did not file a motion for reconsideration of
    the Decision dated October 28, 2002 which granted West Negros a grace period of 60 days from
    notice of finality of the judgment in this case within which to redeem the mortgaged properties. All
    these lead to the conclusion that following the guidelines set forth in the Decision aforementioned.

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