San Beda University College of Law Semester, School Year 2020-2021

SAN BEDA UNIVERSITY
COLLEGE OF LAW
Semester, School Year 2020-2021
COURSE SYLLABUS
COURSE SYLLABUS
COURSE CODE:
COURSE TITLE: NEGOTIABLE INSTRUMENTS LAW AND INSOLVENCY LAW
COURSE CREDIT: 3 UNITS
COURSE PREREQUISITE/S:
FACULTY:
EMAIL ADDRESS:
TERM/ACADEMIC YEAR: FIRST SEMESTER SCHOOL YEAR 2020-2021
DAY/TIME/ROOM/SECTION: TUESDAYS, SECTIONS S, B, I, and J
COURSE DELIVERY MODE: FULL ONLINE
CONSULTATION DAY/TIME:
A. COURSE DESCRIPTION:
A study of the laws and jurisprudence governing negotiable instruments. These include the
Negotiable Instruments Law and other special laws as well decisions of the Supreme Court and
rules issued by the administrative agencies like the Bangko Sentral ng Pilipinas (BSP). There
will be an examination and analyses of the applicable law and commercial principles underlying
negotiable instruments and other related commercial documents. The students will understand
not only the reason for and importance of negotiable instruments and other commercial
documents and the regulatory framework that applies thereto but also how these instruments and
documents can be effective tools in business.
In addition, the course includes a study of the rules on insolvency including the laws and
jurisprudence on rehabilitation, suspension of payment and liquidation. This also includes a
study of the statutory rules and jurisprudence on distribution of assets. The laws and rules that
will be examined include the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, The
Financial Rehabilitation Rules of Procedure (2013), The Financial Liquidation and Suspension
of Payment Rules of Procedure for Insolvent Debtors (2015) and the New Civil Code provisions
on Concurrence and Preference of Credits.
B. COURSE GOALS: Expected College of Law Graduate Attributes (ELGAs)

Know and understand the laws, memorize provisions, develop critical and analytical thinking,
effective in written and oral communication, logical reasoning, and sound judgment, exercise of
proper professional and ethical responsibilities
C. LEARNING OBJECTIVES/OUTCOMES (LOs):
1. Knowledge/Remembering: define, list, recognize

2. Comprehension/Understanding: describe, explain, identify, recognize
3. Application/Applying: choose, demonstrate, implement, perform
4. Analysis/Analyzing: analyze, categorize, compare, differentiate
5. Evaluation/Evaluating: assess, critique, evaluate, rank, rate
6. Synthesis/Creating: construct, design, formulate, organize, synthesize
Upon completion of the Course Title course, the student is expected to be able to:
Expected College of
Law Graduate LEARNING OUTCOMES (LOs)
Attributes (ELGAs)
Critical and analytical LO1. Explain how law is created and enforced by executive,
thinking legislative, and regulatory bodies during class recitation and
Effective in written and discussion.
oral communication LO2. Analyze the practical and policy implications of current and
Logical reasoning proposed statutes, regulations, judicial rulings, legal arguments, and
Sound judgment strategies in preparing a Legal Case.
Exercise of proper LO3. Assess client concerns and translating them into responsive
professional and ethical legal arguments and strategies.
responsibilities LO4. Utilize legal research tools to gather information that aids in
the analysis of legal issues in submitting the Research Paper and/or
other materials.
D. ASSESSMENT/GRADING SYSTEM:
The student will be graded according to the following:
Percentage
(Weight is based
Scope of Work
Requirements (Based on the Learning Outcomes) on the
(Individual)
importance of
the LO)
LO1 Class recitations, Quizzes, Case Digests, Individual
LO2 Problem Solving, and Discussion Individual
LO3 Individual
LO4 - - Research Paper, Case Study
Class standing before Midterms Individual 16.67%

Midterm Exams Individual 16.67%
Class Standing after Midterms Individual 33.33%
Final Exams Individual 33.33%
TOTAL 100
E. LEARNING PLAN:
Design or the structure of the course that includes content/topics to be covered; learning
resources to be used; weekly schedule of the topics to be taken up; and the learning methods to
be utilized that are most likely to lead students towards the goals and learning outcomes that
were defined.
F. LAWS, CASES, TEXTBOOKS AND MATERIALS:
(1) Laws. Negotiable Instruments Law (Act 2031) and Financial Rehabilitation and
Insolvency Act (FRIA) of 2010.
(2) Cases. The students who are part of the class are required to read the cases specified
below. Students should focus on identifying the rule of law or doctrinal precepts, their
application to the facts, exploring the extent or limit of or exceptions to its application
and synthesizing the rule or doctrine into an integrated or coherent framework.
(3) Textbooks. Aquino, Notes and Cases on Negotiable Instruments Law and Banking Law,
2018 Ed. (Rex Bookstore) (referred to below as Aquino, NIL 2018)
Aquino, Essentials of Credit Transactions and Banking Laws, 2015 Ed., Chapters 18 and
19.
(4) Other Materials. Other materials such as special laws, circulars Issued by the
Banko Sentral ng Pilipinas (BSP) are specified in the outline. Additional materials
may be assigned in the course of the semester.
WEEK/ LEARNING
LEARNING DATE METHODS
TOPIC/CONTENT RESOURCES (Schedule of (activities designed
(arrangement or sequence of (print and non-print each Topic, or deployed by the
the major topics is based on a materials and online/ Assign, teacher to bring
logical order) open-access Exam for about, or create the
resources) the entire conditions for
semester) learning)
COURSE INTRUDUCTION:
Syllabus Aug. 10-15, Lecture
 Course overview 2020 Discussion
 Course assignments
 Course requirements
MODULE 1:
1. Applicable Laws  Syllabus August 10-  Recitation

 Textbook: (Chapter 15, 2020  Case study &
1) GSIS v. Court of
1, Aquino, NIL reporting
Appeals, 170
2018)  Discussion/lecture
SCRA 533 (1989)
 Supreme Court  Quiz
2. Functions of Negotiable Decisions (SCRA)
Instruments and Other General
Concepts. (Chapter 1, Aquino,
NIL 2018).
3. Features of Negotiable August 17-

Instruments 22, 2020
a. Distinctive Features.
b. Distinguished from
Non-Negotiable
Instruments
4. Kinds of Negotiable
Instruments
a. Bills of Exchange
b. Promissory Notes
c. Bills Treated as
Notes
d. Checks.
(1) Checks
WEEK/ LEARNING
semester) learning)
distinguished from
Ordinary Bills of
Exchange.
5. Parties to Negotiable
Instruments
2) Parties in Checks.
Cases:
3) Federal Express
Corp. v. Antonino,
G.R. No. 199455,
June 27, 2018
4) Ubas, Sr. v. Chan,
G.R. No. 215910,
February 6, 2017
5) Metropolitan Bank
& Trust Co. v.
Chiok, G.R. Nos.
172652, 175302 &
175394,
November 26,
2014
6) National
Marketing
Corporation v.
Federation of
United
NAMARCO
Distributors, G.R.
No. L-22578,
January 31, 1973
7) Fortunado v. Court
of Appeals, 196
SCRA 28 (1991)
8) Aguilar v.
Lightbringers
Credit
Cooperative, G.R.
No. 209605,
WEEK/ LEARNING
semester) learning)
January 12, 2015
WEEK/ LEARNING
semester) learning)
MODULE 2:
1. Requisites of Negotiability  Syllabus  Recitation

(Chapter 2, Aquino, NIL 2018).
 Textbook:  Case study &
1.01. How to Determine (Chapters 2 & 3, reporting
Negotiability Aquino, NIL 2018) Aug. 17-29,  Discussion/lecture
 Supreme Court 2020  Quiz
1.02. The Requisites of Decisions (SCRA)
Negotiability
a. It Must be in Writing
Signed by the Maker or Drawer;
b. It Must Contain an
Unconditional Promise or Order
to Pay a Sum Certain in Money;
c. Payable on Demand or at a
Fixed or Determinable Future
Time (Payable on Demand;
Payable at Determinable
Future Time: Effect of
Acceleration Clauses, Insecurity
Clauses and Extension Clauses);
d. Payable to Order or Bearer

WEEK/ LEARNING
semester) learning)
(Bearer Instruments under the
NIL; Fictitious Payee Rule;
Order Instruments under the
NIL)
e. Identification
of the Drawee
3.03. Omissions and Provisions

that Do Not Affect
Negotiability
Cases:
1) Caltex (Philippines),
Inc. v. Court of
Appeals, 212 SCRA
448 (1992)
2) The Hong Kong and
Shanghai Bank Corp.
v. CIR, G.R. No.
166018, June 4, 2014
3) Rivera v. Spouses
Chua, G.R. Nos.
184458 and 184472,
January 14, 2015
4) People v. Wagas, G.R.
No. 157943,
September 04, 2013
5) Metropolitan Bank &
Trust Company v.
Court of Appeals,
G.R. No. 88866,
February 18, 1991
6) Philippine National
Bank v. Rodriguez,
G.R. No. 170325,
September 26, 2008
7) Rivera v. Spouses
Chua, G.R. No.
184458, January 14,
2015
WEEK/ LEARNING
semester) learning)
7. Interpretation of Negotiable
Instruments. (Chapter 3,
Aquino, NIL 2018)
8) Republic Planters
Bank v. Canlas, G.R.
No. 93073, December
21, 1992
WEEK/ LEARNING
semester) learning)
MODULE 3:
1. Transfer and  Syllabus  Recitation

Negotiation of Negotiable
 Case study &
Instruments. (Chapter 4,  Textbook:
Aquino, NIL 2008) (Chapters 4, reporting
Aquino, NIL 2018) Aug. 31-  Discussion/lecture
1.01. Modes of Transfer  Supreme Court Sept. 5,  Quiz
Decisions (SCRA) 2020
a. Transfer of Non-Negotiable
Instruments
b. Kinds of Transfer of
Negotiable Instrument
WEEK/ LEARNING
semester) learning)
c. Distinctions Between
Assignment and Negotiation
1.02. Negotiation of Instruments
a. Issuance
b. Negotiation of Bearer and

Order Instruments.
c. Indorsement of Bearer
Instrument
d. Incomplete Negotiation of
Order Instrument
1.03. Indorsement
a. What is Indorsement, How

and Where to Indorse.
b. Persons who will indorse
c. Time and Place of

Indorsement
d. Kinds of Indorsement
(Blank and Special Indorsement;
Qualified Indorsement;
Conditional Indorsement; and
Restrictive Indorsement)
1.04. Negotiation by Prior Party
1.05. Striking out of

Indorsement
Cases:
1) Salas v. Hon. Court of

Appeals, G.R. No. 76788,
January 22, 1980
WEEK/ LEARNING
semester) learning)
2) Sonny Lo v. KJS Eco-
Formwork System Phil., Inc.,
G.R. No. 149420, October 8,
2003
3) Asia Brewery Inc. v.
Equitable PCI Bank, G.R. No.
190432, April 25, 2017
4) Sesbreno v. Court of
Appeals, G.R. No. 89252, May
24, 1993
5) San Miguel
Corporation v. Puzon, Jr., G.R.
No. 167567, September 22,
2010
6) De la Victoria v.
Burgos, G.R. No. 111190, June
27, 1995
7) Development Bank of
Rizal v. Wei, G.R. No. 85419,
March 9, 1993
8) Bank of Philippine
Islands v. Court of Appeals,
G.R. No. 136202
9) Metropol (Bacolod)
Financing & Investment Corp.
v. Sambok Motors Co., G.R. No.
L-39641, February 28, 1993
10) Ty v. People, G.R. No.
149275, September 27, 2004
11) Patrimonio v. Gutierrez,  Syllabus
G.R. No. 187769, June 4, 2014  Textbook:
(Chapters 4 Aquino,
NIL 2018, pages
2. Consideration 140 to 144)
 Supreme Court
Decisions (SCRA)
1) BPI v. Court of  Sections 24 to 28,
Appeals, G.R. No. NIL.
136202, January 25,
2007
2) Ubas, Sr. v. Chan, G.R.
WEEK/ LEARNING
semester) learning)
No. 215910, February 6,
2017.
3) Yang v. Hon. CA, G.R.
No. 138074, August 15,
2003
4) Cayanan v. North Star
International Travel,
Inc., G.R. No. 172594,
October 5, 2011
5) Ty v. People of the
Philippines, G.R. No.
149275, September 27,
2004.
6) De Leon v. Rodriguez,
G.R. No. 202658, June
17, 2019.
WEEK/ LEARNING
semester) learning)
MODULE 4: Holders of
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semester) learning)
Instruments ( Sections 51 to
59, NIL).
 Syllabus Sept. 7-12,  Recitation
1. Meaning of Holder 2020  Case study &
 Textbook:
2. Rights of Holders in
(Chapters 5, reporting
General
Aquino, NIL 2018)  Discussion/lecture
3. Rights of Holders Not in
Due Course.  Supreme Court  Quiz
4. Holders In Due Course: Decisions (SCRA)
Presumption.
5. Requisites of Holders
a. Meaning of
Holder
b. Complete and
Regular
c. Taking before
Overdue
d. Notice of
Infirmity and
Defect
e. Good Faith
f. Holder for
Value
6. Payee as Holder in Due

Course
7. Rights of Holders in
Due Course
8. Rights if Not Holder in

Due Course
9. Shelter Rule
10. Effect on Consumer

Transactions
11. Rights of Holder in Bills

in Set
WEEK/ LEARNING
semester) learning)
Cases:
1) Dino v. Judal-Loot,
G.R. No. 170913,
April 19, 2010
2) Chan Wan v. Tan
Kim, G.R. No. L-
1960
3) Bank of America NT
& SA v, Philippine
Racing Club, G.R. No.
150228, July 30, 2009
4) Vicente R. De
Ocampo & Co. v.
Gatchalian, G.R. No.
L-15126, November
30, 1961
5) State Investment
House v. Moulic, G.R.
No. 101163, January
11, 1993
6) Bataan Cigar &
Cigarette Factory, Inc.
v. Court of Appeals,
G.R. No. 93048,
March 3, 1994
7) State Investment
House v. Court of
Appeals, G.R. No.
72764, July 13, 1989
8) Patrimonio v.
Gutierrez, G.R. No.
187769, June 4, 2014
WEEK/ LEARNING
semester) learning)
MODULE 5: Persons Who are

Liable
 Syllabus September  Recitation
1. Nature of Liability
 Textbook: 14-19, 2020  Case study &
(Chapters 6 and 10, reporting
a. Primary and
Secondary Aquino, NIL 2018)  Discussion/lecture
Liability  Supreme Court  Quiz
b. Distinguished Decisions (SCRA)
from Warranties
2. Maker (Sec. 60, NIL)
3. Drawer
4. Acceptor
a. Relationship
with Drawee
b. Relationship
with Collecting
Bank
c. Payment without
Acceptance in
Checks
5. Relationship of Parties
in Checks (Chapter 10,
Aquino NIL 2018)
WEEK/ LEARNING
semester) learning)
6. Indorsers
a. General
Indorsers -
Secondary
Liability and
Warranties
b. Order of
Liability
c. Qualified
Indorser (Sec.
65, NIL)
d. Conditional
Indorsers.
e. Restrictive
Indorsers.
f. Indorser of
Bearer
Instruments
7. Person Negotiating by
Delivery (Section 65)
8. Agents
a. Corporate
Agents
b. Tradename or
assumed name
c. Agents Per
Procuracion
Cases:
1) Bank of America
NT & SA v
Associated Citizens
Bank, G.R. No.
141001, May 21,
2009
WEEK/ LEARNING
semester) learning)
Bank v. Rodriguez,
G.R. No. 170325,
September 26, 2008
3) RCBC Savings
Bank v. Odrada,
G.R. No. 219037,
October 19, 2016
Bank v. Picornell,
G.R. No. 18751,
September 26, 1922
5) Sapiera v. Court of
Appeals, G.R. No.
128927, September
14, 1999
6) Ang Tiong v. Ting,
G.R. No. L-26767,
February 22, 1968
7) People v. Maniego,
G.R. No. L-30190,
February 27, 1987
8) Gonzalez v. RCBC,
G.R. No. 156294,
November 29, 2006
9) Philippine Bank of
Commerce v.
Aruego, G.R. No.
L-25836, January
31, 1981.
9. Accommodation Pary.
(Aquino NIL 2018, pp. 223-
241).
a. Requisites of
Accommodation
Parties
b. Liability of
Accommodation
Parties
Cases:
WEEK/ LEARNING
semester) learning)
1) Ang v. Associated
Bank, G.R. No.
146511, September
5, 2007
2) Maulini v. Serrano,
G.R. No. 8844,
December 16, 1914.
Bank v. Maza, G.R.
No. 24224,
November 3, 1925.
4) Town Savings &
Loan Bank, G.R. No.
106011, June 17,
1993.
5) People v. Maniego,
G.R. No. L-30910,
February 27, 1987
6) Aglibot v. Santia,
G.R. No. L-185945,
December 5, 2012
7) Gonzales v.
Philippine
Commercial and
International Bank,
G.R. No. 180257,
February 23, 2011.
8) Sedaya v. Sevilla,
G.R. No. L-17845,
April 27, 1967
9) Virata v. Ng Wee,
G.R. Nos. 220926,
221058, 221109,
221135 & 221218,
July 5, 2017.
WEEK/ LEARNING
semester) learning)
WEEK/ LEARNING
semester) learning)
MODULE 6: Defenses.
1. Real Defenses and  Syllabus __________  Recitation

Personal Defenses  Textbook: (Chapter _, 2020  Case study &
a. Concept and Effect.
b. Enumeration of Real
and Personal Defenses.  Supreme Court  Quiz
Decisions (SCRA)
2. Minority and Other
Causes of Incapacity
d. Minority
e. Ultra Vires Acts
Case: Crisologo-
Jose v. Court of
Appeals, G.R.
No. 80599,
September 15,
1989
3. Absence or Failure of
Consideration
WEEK/ LEARNING
semester) learning)
Cases:
1) Green v. Lopez, G.R. No.

11526, January 2, 1917
2) State Investment House v.
Court of Appeals, G.R. No.
101163, January 11, 1993
3) Ubas, Jr. v. Chan, G.R. No.
215910, February 6, 2017
4) State Investment House v.
Court of Appeals, G.R. No.
72764, July 13, 1989
5) RCBC Savings Bank v.
Odrada, G.R. No. 219037,
October 19, 2016
4. Non-Delivery and
Conditional Delivery
of Complete
Instruments
Case: Asia Brewery

Inc. v. Equitable PCI
Bank, G.R. No.
190432, April 25,
2017
5. Non-Delivery of Inc.
Instrument
6. Completing the
Instrument or Filling
Up Blanks Beyond
Authority
Case: Patrimonio v.
Gutierrez, G.R. No.
187769, June 4, 2014
7. Fraud
f. Fraud in Factum
WEEK/ LEARNING
semester) learning)
and Fraud in
Inducement
Distinguished
g. Fraud in
Collateral
Obligation
Case: Prudencio
v. Court of
Appeals, G.R.
No. L-34539,
July 14, 1986
8. Ante-Dating or Post-
Dating
9. Insertion of a Wrong
Date
10. Duress and Intimidation
11. Illegality
12. Prescription
a. Distinguished
from Stale
Checks.
Cases:
1) Evangelista
v. Screenex,
Inc., G.R. No.
211564,
November 20,
2017
2) The
International
Corporate
Bank v. Sps.
Gueco, G.R.
WEEK/ LEARNING
semester) learning)
No. 141968,
February 12,
2001.
13. Material Alteration
Cases:
Bank v. Court of
Appeals, G.R. No.
107508, April 25, 1996
2) Montinola v. The
Philippine National
Bank, G.R. No. L-2861,
February 26, 1951
3) International Corporate
Bank v. Court of
Appeals, September 5,
2006, 501 SCRA 20
4) Far East Bank and Trust

Co. v. Gold Palace
Jewellery Company,
G.R. No. 168274,
August 20, 2008
5) Areza v. Express
Savings Bank, G.R. No.
2014
6) Metrobank v. Cabilzo,
G.R. No. 154469,
December 6, 2006
7) Far East Bank and Trust

Company v. Gold
Palace Jewellery
Company, G.R. No.
WEEK/ LEARNING
semester) learning)
168274, August 20,
2008
14. Forgery and Want of

Authority
a. General Rules
b. Unauthorized Signature
and Incomplete
Signatures.
Case: Metropolitan
Bank and Trust
Company v. BA
Finance Corp., G.R.
No. 179952,
December 4, 2009.
c. Inoperative Forged
Signature and Cut-off
Rule
d. Persons Precluded from

Setting Up Forgery
(1) Warranty
(2) Negligence
(3) Estoppel and
Ratification
e. Effect of Mistaken
Identity
f. Forgery in Promissory
Notes
(1) Forgery of
Maker’s
Signature
(2) Indorser’s
Signature in
Order and
WEEK/ LEARNING
semester) learning)
Bearer
Instruments
g. Forgery in Bills of
Exchange
a. Forgery
of Drawer’s Signature
b. Forgery
of Indorser’s
Signature in
Order and
Bearer
Instrument
h. Forgery in Checks
Case:
Bank v. The Court of
Appeals, G.R. No. L-
26001, October 29,
1968
2) Republic Bank v.
Ebrada, G.R. No. L-
40796, July 31, 1975.
3) Jai-Alai Corporation of
the Philippines, v. Bank
of Philippine Islands,
G.R. No. L-29432,
August 6, 1975.
4) Banco De Oro Savings

Bank v. Equitable
Banking Corp., G.R.
No. 74917, January 20,
1988
5) Metropolitan Bank and

WEEK/ LEARNING
semester) learning)
Trust Co. v. Court of
Appeals, 194 SCRA
1969 (1991)
6) Gempesaw v. Court of
Appeals, G.R. No.
92244, February 9, 1993
7) Associated Bank v.
Court of Appeals, G.R.
No. 107382, January 31,
1996.
8) Westmont Bank v. Ong,
G.R. No. 132250,
January 30, 2002.
9) Allied Banking Corp. v.
Lim Sio Wan, G.R. NO.
133179, March 27, 2008
10) Samsung Construction
Company Philippines,
Inc. v. Far East Bank
and Trust Company,
G.R. No. 168274,
August 20, 2008.
11) Bank of America NT &
SA v. Associated
Citizens Bank, G.R. No.
141001, May 21, 2009.
12) Land Bank of the
Philippines v. Kho, G.R.
No. 205839, July 7,
2016.
13) BDO Unibank v. Lao,
G.R. No. 227005, June
19, 2017
14) Metropolitan Bank and
Trust Company v.
Junnel’s Marketing,
G.R. No. 235511, June
20, 2018
WEEK/ LEARNING
semester) learning)
WEEK/ LEARNING
semester) learning)
MODULE 7: Enforcement of
Liability
 Syllabus _________,  Recitation
 Textbook: (Chapter 2020  Case study &
1. Steps to Charge the
Parties Liable.
g. Steps in  Supreme Court  Quiz
Promissory Decisions (SCRA)
Note
h. Steps in Bill of
Exchange
2. Presentment for
Payment
2.1. Requisites for

Sufficiency
2.2. Date of
WEEK/ LEARNING
semester) learning)
Presentment
2.3. Payable at a
Bank
2.4. Proper Place
2.5. To Whom
Presented
i. Partners
j. Joint Debtors
2.6. Instrument
Exhibited
2.7. When
Presentment
Not Necessary
or Excused
2.8. Retention of
Liability Even if
Not Presented
2.9. Meaning of
Dishonor for
Non-Payment
Cases:
1) The
International
Corporate Bank v.
Sps. Gueco, G.R.
No. 141968,
February 12, 2001.
2) Far East
Realty Investment,
Inc. v. Court of
Appeals, 166
SCRA 256 (1988)
3) Ansaldo
v. Court of
Appeals, G.R. No.
47696, August 29,
1989
4) Far East
Bank & Trust Co.
WEEK/ LEARNING
semester) learning)
v. Quermit, G.R.
No. 148582,
January 16, 2002.
5) Wong
v. Court of
Appeals, G.R. No.
117857, February
2, 2001.
3. Presentment for
Acceptance
3.1. How Made
3.2. Time to Present

for Acceptance
3.3. When Delay or

Presentment is
Excused
3.4. Meaning of
Dishonor for
Non-
Acceptance
4. Acceptance
4.1. Where Indicated
4.2. Time to Accept

and Effect of
Retention
a. Sections 136 and

137
Distinguished.
4.3. Future and

Incomplete Bills
WEEK/ LEARNING
semester) learning)
4.4. Kinds of
Acceptance
Case:
1) McGuirre v.
The Province of
Samar, G.R.
No. L-8155,
October 23,
1956.
5. Notice of Dishonor
5.1. Effect of
Absence of
Notice on
Separate
Contract
5.2. Meaning
Dishonor
5.3. Who Should

Give Notice and
Effects
5.4. Form of Notice
5.5. To Whom
Given
d. Party is Dead
e. Notice to
Partners
f. Notice to Joint
Debtors
g. Notice to
Bankrupt
5.6. Time and Place

of Notice
WEEK/ LEARNING
semester) learning)
a. Time to
Give
Notice
b. Where
Notice
must be
sent
5.7. Waiver of
Notice
c. Types of Waiver
d. To Whom
Binding
e. Waiver of Protest
5.8. Delay in Giving

Notice
5.9. When Notice is

Excused or
Unnecessary
5.10. Effect of Failure

on HDC
Cases:
Islands v. Spouses
Rouce, G.R. No.
176664, July 21, 2008
2) Producers Bank of the
Philippines v. Excelsa
Industries, Inc., G.R.
No. 157071, May 8,
2009
3) Velasquez v. Solidbank,
G.R. No. 157309,
WEEK/ LEARNING
semester) learning)
March 28, 2008.
4) Far East Realty
Investment, Inc. v. The
Hon. Court of Appeals,
G.R. No. L-36549,
October 5, 1988.
5) State Investment House
v. Court of Appeals, 217
SCRA 32 (1993)
6) Great Asian Sales
Center Corp. v. The
Court of Appeals, G.R.
No. 105774, April 25,
2002.
7) Lopez v. People of the
Philippines, G.R. No.
166810, June 26, 2008.
8) Asia Banking
Corporation v. Javier,
G.R. No. 19051, April
1923, 44 SCRA 779
9) Gullas v. Philippine
National Bank, G.R. No.
43191, November 13,
1935.
10) Nyco Sales Corporation
v. BA Finance
Corporation, G.R. No.
71694, August 16, 1991
6. Rules Regarding
Foreign Bills
6.1. Protest
a. When
Required
and When
Discretionar
y
i. Inland
Bills
WEEK/ LEARNING
semester) learning)
ii. Cases
when
Protest
is
Necessa
ry
k. Rationale
l. How protest is
made
m. When Made
i. Protest
for
Better
Security
Before
Maturit
y
n. Place of Protest
o. Protest
Dispensed with
p. Distinguished
from Notice of
Dishonor
6.2. Acceptance for

Honor
6.3. Payment for

Honor
Cases:
1) Velasquez v. Solidbank,
G.R. No. 157309,
March 28, 2008.
2) Producers Bank of the
Philippines v. Excelsa
Industries, Inc. G.R. No.
152071, May 8, 2009
WEEK/ LEARNING
semester) learning)
WEEK/ LEARNING
semester) learning)
MODULE 8: Discharge
1. Concept  Syllabus  Recitation

2. Ground for Discharge of
 Textbook: (Chapter  Case study &
Persons Primarily
Liable 9, Aquino, NIL ________, reporting
2018) 2020  Discussion/lecture
q. Payment  Supreme Court  Quiz
r. Renunciation Decisions (SCRA)
s. Cancellation
t. Acts that
Discharge
Simple
Contracts
u. Novation
3. Principal Debtor
WEEK/ LEARNING
semester) learning)
Becomes the Holder
4. Surrender of the
Instrument
5. Discharge of Persons
Secondarily Liable
v. Discharge of
Prior Party
w. Tender of
Payment
x. Release of
Principal Debtor
y. Extension of
Term
z. Accommodatio
n Party
Cases:
1) Salazar v. J.Y. Brothers

Marketing Corporation,
G.R. No. 171998,
October 20, 2010.
2) Spouses Abella v.
Spouses Abella, G.R.
No. 219534, November
25, 2019.
WEEK/ LEARNING
semester) learning)
MODULE 9: Checks
1. Definition and Parties.  Syllabus  Recitation

2. Kinds of Checks
10, Aquino, NIL _________, reporting
a. Cashier’s and
2018) 2020  Discussion/lecture
Manager’s
Checks  Supreme Court  Quiz
b. Certified Decisions (SCRA)
Checks
c. Certification
Procured by
Holder
d. Crossed Check
(1) Applicable
Laws
(2) Effects of
Crossing
(3) Kinds of
Crossed
Checks
(4) Effect on
Negotiability
e. Memorandum
and Traveller’s
Checks
3. Distinguished from
Other Bills of
Exchange, Promissory
Notes and Negotiable
Order of Withdrawal
(NOW)
4. Clearing of Checks.
a. Effect of
WEEK/ LEARNING
semester) learning)
Payment Before
Clearing:
DAUD Checks
5. Liability of the Drawer

for Wrongfully
Dishonoring and
Honoring a Check
6. Stopping Payment
a. Iron Clad Rule
7. Crimes Involving
Checks
aa. Estafa
bb. Violation of
Batas Pambansa
Blg. 22
cc. Check Kiting
Cases:
1) Spouses Moran v.
Hon. Court of
Appeals, G.R. No.
105836, March 7,
1994
2) Prudential Bank v.
Lim, G.R. No.
136371, November
11, 2005
Bank v. Pujol, G.R.
No. 126152,
September 28, 1999
4) Citytrust Banking
Corp v. Cruz, G.R.
No. 157049, August
11, 2010
5) Citibank N.A. v.
Dinopol, G.R. No.
WEEK/ LEARNING
semester) learning)
188412, November
22, 2010
6) Bank of America
NT & SA v.
Philippine Racing
Commission, G.R.
No. 150228, July
30, 2009
PART II
FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010 AND

CONCURRENCE AND PREFERENCE OF CREDITS
COURSE DESCRIPTION: A study of the rules on insolvency including the laws and
jurisprudence on rehabilitation, suspension of payment and liquidation. This also includes a
study of the statutory rules and jurisprudence on distribution of assets. The laws and rules that
will be examined include the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, The
Financial Rehilitation Rules of Procedure (2013), The Financial Liquidation and Suspension of
Payment Rules of Procedure for Insolvent Debtors (2015) and the New Civil Code provisions on
Concurrence and Preference of Credits.
A study of the rules on insolvency including the laws and jurisprudence on rehabilitation,
suspension of payment and liquidation. This also includes a study of the statutory rules and
jurisprudence on distribution of assets. The laws and rules that will be examined include the
Financial Rehabilitation and Insolvency Act (FRIA) of 2010, The Financial Rehilitation Rules
of Procedure (2013), The Financial Liquidation and Suspension of Payment Rules of Procedure
for Insolvent Debtors (2015) and the New Civil Code provisions on Concurrence and Preference
of Credits.
TEXTBOOK: Aquino, Essentials of Credit Transactions and Banking Laws, 2015 Ed., cited
here as “Aquino ECT 2015”.
WEEK/ LEARNING
semester) learning)
MODULE 10: FRIA
1. Applicable Law  Syllabus  Recitation

 Textbook: (Chapter ______,  Case study &
a. Rationale and 2020 reporting
19, Aquino ECT
State Policies
b. Coverage of
FRIA  Supreme Court  Quiz
c. Organizations Decisions (SCRA)
that are not
Covered by Fria
and their
Applicable
Laws.
2. Nature of
Proceedings in FRIA
Case:
1) Allied Banking
Corp. v.
Equitable PCI
Bank, G.R. No.
191939, March
14, 2018
3. Persons Covered by
FRIA
a. Debtor and
Insolvent Debtor
b. Group of
Debtors
c. Creditors.
4. Liability for
Unlawful Disposition
of Assets
WEEK/ LEARNING
semester) learning)
5. Court Supervised
Rehabilitation
5.1. Concept of
Rehabilitation
5.2. Two Factors for

Successful
Rehabilitation.
5.3. Kinds of
Rehabilitation
Proceedings and
Requisites for Filing
5.4. Rehabilitation Plan

a. Requisites and
Contents
b. Economic
Feasibility Rule;
c. Approval
5.5. Stay Order
dd. Suspended
Claims
ee. Effects on
Cases and Other
Proceedings.
ff. Exceptions to
the Stay Order
i. Effect on Secured
Creditors
ii. Effect on
Solidary Debtors
iii. Effect on
Personal
Securities
iv. Effect on
Criminal Cases
v. Effect on Real
Securities
WEEK/ LEARNING
semester) learning)
gg. Retroactive
Effect of Stay
Order.
5.6. Cram Down

Principle.
5.7. Effect of
Rehabilitation Plan,
Stay Order and
Power of Court on
Contracts, Amounts
Payable and Other
terms and
Conditions.
5.8. Effect Rehabilitation

Proceedings on
Management
5.9. Administrative
Expense
5.10. Disposition of the

Rehabilitation Case
Cases:
& Trust Company v.
Fortuna Paper Mill
& Packaging Corp.,
G.R. No. 190800,
November 7, 2018
2) Philippine Bank of
Communications v.
Basic Polyprinter
and Packaging
Corp, G.R. No.
187581, October 20,
2014
3) San Jose Timber
WEEK/ LEARNING
semester) learning)
Corporation v. SEC,
G.R. No. 162196,
February 27, 2012.
Islands v. Sarabia
Manor Hotel
Corporation, G.R.
No. 175844, July
28, 2013
5) Far East Bank and
Trust Co. v. Union
Bank of the
Philippines, G.R.
No. 196637, June 3,
2019.
6) Pryce Corporation
v. China Banking
Corporation, G.R.
No. 172302,
February 18, 2014.
7) Philippine Islands
Corp. for Tourism
and Development
Inc. v. Victorias
Milling Corp., G.R.
No. 167674, June
17, 2008
8) Bureau of Internal
Revenue v. Lepanto
Ceramics, G.R. No.
224764, April 24,
2017.
9) Situs Development
Corp. Asiatrust
Bank, G.R. No.
180036, January 16,
2013.
10) Yngson, Jr. v.
Philippine National
Bank, G.R. No.
171132, August 15,
2012.
WEEK/ LEARNING
semester) learning)
11) Trade and
Investment
Development
Corporation of the
Philippines v.
Philippine Veterans
Bank, G.R. No.
233850, July 1,
2019
12) Pacific Wide Realty
and Development
Corp. v. Puerto Azul
Land, Inc., G.R.
Nos. 178768 &
180893, November
25, 2009.
13) Dela Torre v.
Primetown Property
Group, Inc., G.R.
No. 221932,
February 14, 2018
14) Allied Banking
Corp. v. Equitable,
G.R. No. 191939.
March 14, 2018
15) China Banking
Corporation v. ASB
Holdings, Inc., G.R.
No. 172192,
December 23, 2008
16) Land Bank of the
Philippines v.
Polillo Paradise
Island Corp., G.R.
No. 211537,
December 10, 2019
17) La Savoie
Development Corp.
v. Buenavista
Properties, Inc.,
G.R. Nos. 200934-
35, June 19, 2019
WEEK/ LEARNING
semester) learning)
18) Bustos vs.
Millians Shoe,
G.R. No. 185024,
April 24, 2017
19) Sobrejuanite vs.
ASB, 30 Sept
2005
20) Negros Navigation
vs. Court of
Appeals, 10
December 2008
21) Garcia vs.
Philippine
Airlines, 20
January 2009
22) MWSS v. Daway,
G.R. No. 160732,
June 21, 2004
23) Alfredo Villamor,
Jr. v. John Umale,
G.R. No. 172843,
September 24,
2014
24) Viva Shipping
Lines, Inc. vs.
Keppel Philippines
Marine, Inc., 784
SCRA 173, G.R.
No. 177382
February 17, 2016
25) BPI Family
Savings Bank, Inc.
vs. St. Michael
Medical Center,
Inc., 754 SCRA
493, G.R. No.
205469 March 25,
2015
WEEK/ LEARNING
semester) learning)
and Trust
Company vs.
Liberty
Corrugated Boxes
Manufacturing
Corporation, 815
SCRA 458, G.R.
No. 184317
January 25, 2017
6. Out-of-Court
Rehabilitation
6.1. Requisites for Filing
6.2. Approval of the

Court
6.3. Effects
7. Petition for Suspension of

Payments
7.1. Requisites of Petition

for Suspension.
7.2. Distinguished from

Rehabilitation and
Other Proceedings.
7.3. Coverage: Persons

Covered.
7.4. Approval and Effect

of Suspension Order
hh. Prohibited Acts

ii. Exception to
WEEK/ LEARNING
semester) learning)
Effect of
Suspension
Order
jj. Effect on
Secured
Creditors
kk. Creditors’
Meeting
8. Liquidation
8.1. Nature and Kinds of

Liquidation
Proceedings.
h. Distinguished
from
Rehabilitation
and Suspension
of Payment.
8.2. Requisites for

Individual Debtors
8.3. Liquidation of Other

Business Orgs.
8.4. Persons Who Can
File or Approve the
fling of Liquidation
Proceedings.
8.5. The Liquidation

Process
8.6. Liquidation Order
a. Effects of
Liquidation Order
b. Rights of Secured
Creditors
WEEK/ LEARNING
semester) learning)
8.7. Rules on Distribution

of Assets
9. Cross-Border Insolvency
WEEK/ LEARNING
semester) learning)
MODULE 11: Distribution of

Asses: Rules on Concurrence _________,
and Preference of Credits.  Syllabus 2020  Recitation
1. Patrimony of Debtor reporting
18, Aquino, ECT
and Satisfaction of
Credit - Art.
2236  Supreme Court  Quiz
Decisions (SCRA)
2. Determination of Assets
Available for
Distribution of Assets.
3. Exempt Properties
a. Exempt in the
WEEK/ LEARNING
semester) learning)
Rules of Court
b. Exemption in
Statutes
4. Statutory Provisions on
Concurrence and
Preference.
a. Characteristics of
Statutory Provisions
5. Requirements: When
the Rules on
Concurrence and
Preference of Credits
Apply
a. Necessity of
Insolvency and Similar
Proceedings
b. Applicability to
Settlement of Estate
c. Applicability to
Liquidation of ACP and
CPG of Spouses.
6. Meaning of
Concurrence and
Preference Rules
7. Fraudulent Transfer of
Debtors
8. Summary of Procedure
for Division of the
Assets of the Insolvent
Creditor
a. Classification of
Credits
b. How to Distribute
WEEK/ LEARNING
semester) learning)
Assets to the Credits.
9. Special Preferred
Credits
ll. Nature of Special

Preferred Credits.
mm. Rules on
Preference and
Concurrence.
nn. Special Preferred
Credits with Respect
to Movable (Art.
2241 NCC)
oo. Special Preferred
Credits on
Immovable Property
(Art. 2242, NCC)
10. Ordinary Preferred

Credits
a. Labor Claims
b. Secured Creditors
11. Common Credits
Cases:
1. Pacific Farms, Inc. v.

Esguerra, G.R. No. L-
21783, November 29,
1969
2. Yngson, Jr. v.
Philippine National
Bank, G.R. No. 171132,
August 15, 2012
3. DBP v. Secretary of
Labor, G.R. No. 79351,
November 28, 1989
4. DBP v. NLRC, G.R.
No. 86227, January 19,
1994
WEEK/ LEARNING
semester) learning)
5. Associated Labor
Unions v. Court of
Appeals, G.R. No.
156882, October 31,
2008
6. Strategic Alliance
Development
Corporation v. Radstock
Securities, Ltd., G.R.
No. 178158, December
4, 2009.
7. Republic v. Peralta,
G.R. No. L-56568. May
20, 1987
8. Development Bank of
the Philippines v.
National Labor
Relations Commission,
G.R. No. 82763-64,
March 19, 1990.
9. Philippine Deposit
Insurance Corporation
v. Bureau of Internal
Revenue, G.R. No.
172892, June 13, 2013.
10. Cordoba v. Reyes
Daway Lim Bernardo
Lindo Rosales Law
Offices, G.R. No.
146555, July 3, 2007.
11. Philippine Export and
Foreign Loan Guarantee
Corp. v. Court of
Appeals, G.R. No.
118701, December 12,
1995
WEEK/ LEARNING
semester) learning)
POLICIES:
Policies and values that the teacher might want to communicate through the syllabus concerning
attendance, participation, academic integrity (e.g. plagiarism, cheating, fabrication), missing
assignments, missed exams, recording classroom activities, online behavior during synchronous
sessions, etc.
1. Attendance will be checked every meeting.

2. Students who are called to recite but absent shall get a grade of 60.
3. Students who missed a quiz will get a grade of 60.
4. Students are prohibited from recording the online class as this is a violation of the
Copyright of the Professor.
Prepared by:
Signature
______________________________
Faculty, College of Law
Approved by:
Signature
Atty. Marciano G. Delson
Dean, College of Law
Date Prepared by the Faculty

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SAN BEDA UNIVERSITY

B. COURSE GOALS: Expected College of Law Graduate Attributes (ELGAs)

C. LEARNING OBJECTIVES/OUTCOMES (LOs):

1. Knowledge/Remembering: define, list, recognize

The student will be graded according to the following:

Class standing before Midterms Individual 16.67%

F. LAWS, CASES, TEXTBOOKS AND MATERIALS:

1. Applicable Laws  Syllabus August 10-  Recitation

3. Features of Negotiable August 17-

1. Requisites of Negotiability  Syllabus  Recitation

d. Payable to Order or Bearer

3.03. Omissions and Provisions

1. Transfer and  Syllabus  Recitation

1.02. Negotiation of Instruments

b. Negotiation of Bearer and

a. What is Indorsement, How

b. Persons who will indorse

c. Time and Place of

1.04. Negotiation by Prior Party

1.05. Striking out of

1) Salas v. Hon. Court of

6. Payee as Holder in Due

8. Rights if Not Holder in

10. Effect on Consumer

11. Rights of Holder in Bills

MODULE 5: Persons Who are

2. Maker (Sec. 60, NIL)

1. Real Defenses and  Syllabus __________  Recitation

1) Green v. Lopez, G.R. No.

Case: Asia Brewery

10. Duress and Intimidation

13. Material Alteration

4) Far East Bank and Trust

7) Far East Bank and Trust

14. Forgery and Want of

d. Persons Precluded from

4) Banco De Oro Savings

5) Metropolitan Bank and

2.1. Requisites for

3.1. How Made

3.2. Time to Present

3.3. When Delay or

4.1. Where Indicated

4.2. Time to Accept

a. Sections 136 and

4.3. Future and

5.3. Who Should

5.4. Form of Notice

5.6. Time and Place

5.8. Delay in Giving

5.9. When Notice is

5.10. Effect of Failure

6.2. Acceptance for

6.3. Payment for

1. Concept  Syllabus  Recitation

1) Salazar v. J.Y. Brothers

1. Definition and Parties.  Syllabus  Recitation

5. Liability of the Drawer

FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010 AND