ANGELES UNIVERSITY FOUNDATION

School of Law
Banking and Allied Laws
2nd Semester, AY 2016-2017
Prof. R. R. Dujunco

Grading System:

Recitation 40%
Midterms 30%
Finals 30%

Texts: Banking and Allied Laws by Larry P. Ignacio (2016, Central Books)
Essentials of Credit Transactions and Banking Laws by Timoteo B. Aquino (2015, Rex
Book Store) just the Banking portion

I. General Banking Law of 2000 (R.A. No. 8791) or GBL

Ignacio, pp 1-38
Aquino, Chapters 20 and 21

1. Definition and Classification of Banks

Republic v. Security Credit and Acceptance, 19 SCRA 58 (1967) G.R. No. L-20583,
January 23, 1967
Banas v. Asia Pacific Corporation, 343 SCRA 527 (2000)
Simex International (Manila) v. CA, 183 SCRA 360 (1990)
BPI v. IAC, 206 SCRA 408 (1992)

2. Diligence Required of Banks Relevant Jurisprudence

Ignacio, pp 86-101

BPI v. CA, 326 SCRA 641 (2000)

Consolidated Bank and Trust Corporation v. CA, 410 SCRA 562 (2003)
Philippine Banking Corporation v. CA, 419 SCRA 487 (2004)
Samsung Construction Company Philippines Inc. v. Far East Bank, 436 SCRA 402
(2004)
Heirs of Eduardo Manlapat v. CA, 459 SCRA 412 (2005)
PNB v. Pike, 470 SCRA 328 (2005)
Cadiz v. CA, 474 SCRA 232 (2005)
Far East Bank and Trust v. Pacilan Jr., 465 SCRA 372 (2005)
Citibank N.A. v. Cabamongan, 488 SCRA 517(2006)
Citibank N.A. v. Sabeniano, 504 SCRA 378 (2006)
Reyes v. CA, G.R. No. 118492, August 15, 2001
Solidbank Corporation v. Sps. Tan, G.R. No. 167346, April 2, 2007
 3. Distinction of Banks from Quasi-Banks and Trust Entities

4. Bank Powers and Liabilities

Aquino, Chapter 26 OTHER BANK REGULATIONS

a. Corporate Powers
b. Banking and Incidental Powers

5. Other bank functions

Ignacio, pp. 189-191

Aquino, Chapter 25 and 28 OTHER BANK FUNCTIONS - TRUST

6. Nature of Bank Funds and Bank Deposits

Ignacio, pp. 78-86

Aquino, Chapter 22 DEPOSIT FUNCTION

People v. Puig, 563 SCRA 564 (2008)

Guingona v. City Fiscal, 128 SCRA 577 (1984)
BPI Family Bank v. Amado Franco and CA, G.R. No. 123498, November 23, 2007
Far East Bank and Trust Co. v. Chante, G.R. No. 170598, October 9, 2013
Ana Rivera v. Peoples Bank and Trust Company, 73 Phil. 546 (1942)
Vitug v. CA, G.R. No. 82027, March 29, 1990

7. Stipulation on Interests and Grant of Loans

Aquino, Chapter 24 LOAN FUNCTIONS OF BANKS

New Sampaguita Builders Construction v. PNB, G.R. No. 148753, July 30, 2004
Manila Banking Corporation v. Teodoro, Jr., G.R. No. 53955, January 13, 1989

8. Truth in Lending Act (R.A. No. 3765)

Ignacio, pp. 192-199

DBP vs. Arcilla, Jr., 462 SCRA 599 (2005)

9. Security Requirements

Ignacio, pp. 168-188

Aquino, Chapter 24 LOAN FUNCTIONS OF BANKS

a. Ratio of Net Worth to Total Risk

Assets
b. Single Borrowers Limit
c. Restrictions on Bank Exposure to DOSRI (Directors, Officers, Stockholders
 and their Related Interests)

Go v. BSP, G.R. No. 178429, October 23, 2009

Soriano v. People, G.R. No. 162336, February 1, 2010
Agan v. PIATCO, 402 SCRA 612 (2003)

II. Unclaimed Balances Law (R.A. No. 3936, as amended)

Ignacio, pp. 200-208

Aquino, Chapter 22 DEPOSIT FUNCTION

RCBC v. Hi-Tri Development Corporation, G.R. No. 192413, June 13, 2012

III. The New Central Bank Act (R.A. No. 7653)

Ignacio, pp. 39-77

Aquino, Chapter 27 and 29

1. State Policies
2. Creation of the Bangko Sentral ng Pilipinas (BSP)
3. Responsibility and Primary Objective
4. Monetary BoardPowers and Functions
5. How the BSP Handles Banks in Distress
a. Conservatorship
b.
Closure
c.
Receivership
d. Liquidation
6. How the BSP Handles Exchange Crisis
a. Legal Tender
Power
b. Rate of Exchange

IV. Philippine Deposit Insurance Corporation (R.A. No. 3591, as amended) moral hazard

Ignacio, pp. 209-224

Aquino, Chapter 22

V. Law on Secrecy of Bank Deposits (R.A. No. 1405 and R.A. No. 6426, Sec. 8, as amended)

Ignacio, pp. 104-167

Aquino, Chapter 22

1. Purpose
2. Prohibited Acts
3. Deposits Covered
4. Exceptions
5. Garnishment of Deposits, including Foreign Deposits
 BSB Group v. Sally Go, G.R. No. 168644, February 16, 2010
Ejercito v. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006
Marquez v. Desierto, G.R. No. 135882, June 27, 2001
Chinabank v. CA, G.R. No. 140687, December 18, 2006
Chinabank v. Ortega, G.R. No. L-34964, January 31, 1973
Fernandez v. Anion, G.R. No. 138967, April 24, 2007

VI. Anti-Money Laundering Act (R.A. No. 9160, as amended by R.A. No. 9194)

Aquino, Chapter 23
Ignacio, pp. 225-250

1. Policy of the Law

2. Covered Institutions
3. Obligations of Covered Institutions
4. Covered Transactions
5. Suspicious Transactions
6. When Is Money Laundering Committed
7. Unlawful Activities or Predicate Crimes
8. Anti-Money Laundering Council
9. Functions
10. Freezing of Monetary Instrument or Property
11. Authority to Inquire Into Bank Deposits