Escolar Documentos
Profissional Documentos
Cultura Documentos
liquidity of the banks and safety of funfs of the depositors require that the loans
obtained form the banks are secured by collaterals.
For real property: the loan shall not exceed 75% of the appraised value of the security +
60% of the appraised value of the improvement
For chattels and intangible properties: the loan shall not exceed 75% of the appraised
value of the security
FORECLOSURE OF MORTAGGE
Redemption Period
For Natural persons: within ONE YEAR after the sale of the real estate to redeem the
proeprty
For Juridical persons: (EJF) right to redeem property within THREE MONTHS not
after the registration of the certificate of foreclosure sale
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Assignment of rights
- the debtor may also secure his obligation to the bank by assignings rights by way
of security: the debtor may assign his receivables from other persons;
- Note that: in order for the assignment of rights to be considered as security, the
same intent must appear in the instrument itself
SINGLE BORROWER LIMIT
Ceiling GR: total amount of loans, credit accommodations, and guarantees as may be
defined by the Monetary Board that may be extended by a bank shall not exceed 20%
(currently 25%) of the net worth of such bank. Additional 10% may be increased
provided the additional liabilities of any borrower are adequately secured by trust
receipts, shipping documents, warehouse receipts or other similar documents transferring
or securing title w/c must eb fully covered by insurance.
LOAN PARTICIPATIONS AND SYNDICATED LOASN
- when the maount to be borrowed is huge, borrowers ma yarrange for a multi-lender
transaction;
LOAN PARTICIPATION
SYNDICATED LOAN
- loan negotiated between the
- each lender is a member of the
borrower and the lead lender;
syndicate and a party to the loan
- lead lender sells a percentage of
documents;
- lead bank may initially be the only
the loan to one/more participants in
lender
the loan
- borrower direct contractual
- also refers to the practice of selling
loans to other instittutions
relationship with each member of
the lending syndicate
- often involve revolving credit
arrangement;
TRUTH IN LENDING
Truth in Lending Act
to protect the citizens from wareness of true credit by assuring full disclosure of such
costv with a view of preventing the uninformed use of credit to the detriment of national
economy.
-
requires the lender to give the borrower all the details regarding the transaction;
this means that if theres no disclosure even though theres stipulation to the fact,
the contract cannot be given effect under the Truth in Lending Act;
2. any conditional sales contract, any contract to sell, contract of sale of property or
services;
3. any rental-purchase contract;
4. any contract or arrangement for the hire, bailment or leasing of property;
5. any option or demand, lien, pledge or other claim against, or for the delivery of
property or money;
6. any purchase or other acquisition of or any credit upon security of any obligation
or claima rising out of any of the foregoing and
7. any transaction or series of transactions having a similar purpose or effect
When not applicable to banks:
(ff. categories are outside the scope of Truth and Lending Act)
1. credit transactions w/c do not involve payment of any finance charge by the
debtor;
2. credit transactions w/ debtor is the one specifying a definite and fixed set of credit
terms such as bank deposits, insurance contracts, sale of bonds, etc.
Escalation clauses:
- truth in lending act may also eb violated if the agreement provides for escalation
clause w/ is dependent solely on the will of the bank
Subsequent compliance, not allwowed
- the duty to furnish disclosure statement shall be made PRIOR to the
consummation of the transaction.
- Hence, the bank canot escape liability by the emre fact that the borrower was
furnished with a copy that evidence the transaction.
- Subsequent compliance with the disclosure requirement, NOT be deemed in
substantial compliance with TLA.
Remedies:
- Criminal and Civil liabilities
Prescriptive period: (prescriptive period tp recover penalty) ONE YEAR from the date
of ofccurence of violation.
CONSUMER ACT
- to protect the consumer from alck of awareness of the true cost of credit to the
user, the State shall assure full disclosure of the true cost of credit;
- Charges and interests:
- Pre-payment: the person to who credit is extended may pre-pay in full or in aprt
at any time without penalty, the unpaid balance of any consumer credit
transaction.
Rule of 78/ Sum of the Digits only payment made on or ebofre the 15th day
following an installment due date = as of the installemtn due date; if payment
occurs after the 15th day, it shall be deemed to have been made on the succeeding
installment due date.
- Disclosure requirements:
Art 145 Exempted Transactions the foregoing reqts on consumer credit transactions
shall NOT apply to the ff credit transactions:
1. those involving extension of credits for business/ commercial purposes or to the
government and governmental agencises and instrumentalities, juridical entities or
to organizations;
2. those in w/c the debtor is the one specifying the definite set of credit terms such as
bank deposits, insurance contracts, sale of bonds or analogous transactions;