Republic of the Philippines

REGIONAL TRIAL COURT

5th Judicial Region
Branch VI
Iligan City

SPOUSES MALAKAS AND MARIKIT SANTOS

Plaintiffs,

- versus - Civil Case No.

L-0127
For: Declaration of Nullity of
Real Estate Mortgage

YAYAMANIN BANKING CORPORATION

Defendant.
x-------------------------------------------------x

JUDICIAL AFFIDAVIT

I, Gina Lingan, of legal age, Filipino, single, a resident of and

with post office address at 123 Alquizar St., Tubod, Iligan City, am
testifying as one of the witnesses for the defendant in the above
entitled case, and, fully conscious and aware that I answer the
questions propounded under oath and may thus be held criminally
liable for false testimony or perjury, under oath, hereby depose and
state:

Q1 - Who is the lawyer conducting this examination and please

state the place where this examination is being conducted?

A - Atty. Lainera M. Nassief, and the examination is being held at

2/F ACE Corporate Center, Iligan City.
Q2 - In what manner has Atty. Lainera M. Nassief conducted the
examination, as regards the questions asked and the answers you
gave?

A - Atty. Lainera M. Nassief has encoded in her desktop computer

the questions she prepared, and, read them to me, and asked me to
answer each and every question she asks.

Q3 - Is there anyone else present while the examination is being

conducted?

A - None maam.

Q4 - Do you know the defendant in this case?

A - Yes, maam.

Q5 - Why do you know the defendant Yayamanin Banking

Corporation?

A - I am employed as the manager for its Iligan City Office since

2010.

Q6 - What are your responsibilities as a manager?

A - I am responsible for the management and operations of the

bank.

Q7 - How about the plaintiffs in this case, do you know them?

A - Not personally maam. But I know that they filed a complaint

against Yayamanin Banking Corporation regarding an alleged void real
estate mortgage executed in favor of the bank.

Q8 - I am showing to you a two-page certified true copy of a Real

Estate Mortgage dated and notarized on January 2, 1992 previously
marked as Exhibit 1, are you referring to this?
A - Yes, maam.
Q9 - Why did the plaintiffs in this case execute a mortgage
contract?

A - It is a security for payment because the spouses Santos

obtained a loan of one hundred and fifty thousand-peso (P 150,000)
from Yayamanin Bank.

Q10 - What are the properties mortgaged by the plaintiffs in this

mortgage contract?

A - The plaintiffs mortgaged two parcels of land located in Iligan

City, the first covered by Transfer Certificate Title (TCT) No. 12345 and
the second by Tax Declaration (TD) No. 678910 and designated as
Cadastral Lot No. 10.

Q11 - Were the plaintiffs able to pay their loan when it became due?

A - No, maam.

Q12 - What did the bank do, if any, when the plaintiffs defaulted on
their loan obligation?

A - After several demands, both oral and written, all of which were
not heeded, the bank finally decided to foreclose the mortgage extra
judicially.

Q13 - I am showing to you a one-page certified true copy of a

Notice of Extra Judicial Foreclosure previously marked as Exhibit 2,
are you referring to this?

A - Yes, maam.

Q14 - Who was the buyer of the properties when the same were
sold at the foreclosure sale?
A - Yayamanin Banking Corporation, as lone bidder, bought the
properties for P400, 000. ABC was issued a Certificate of Extra-Judicial
Sale.

Q15 - Showing to you this Certificate of Extra-Judicial Sale marked

as Exhibit 3, are you referring to this?

A - Yes, maam.

Q16 - What did Yayamanin Banking Corporation do after the

issuance of the said certificate?

A - Yayamanin secured a writ of possession after it acquired the

property as winning bidder.

Q17 - Did the plaintiffs redeem the properties during the

redemption period allowed by law?

A - No, maam.

Q18 - When the plaintiffs failed to redeem the properties what did
Yayamanin Banking Corporation do, if any?

A - Yayamanin Banking Corporation consolidated its ownership

over the subject properties. Yayamanin also secured a new title over
the property covered by TCT No. 12345 and new tax declaration under
its name for Lot No. 10

Q19 - I here show you to you an Affidavit of Consolidation of

Ownership, a Transfer Certificate Title No. 111213 and a Tax
Declaration No. 141516, all of which were previously marked as
Exhibits 4, 5 and 6 respectively, are these the documents you
are referring to?

A - Yes, maam.

Q20 - How did this case come to your attention?

A - On 1 May 2015, ABC Banking Corporation has received a copy
of a complaint filed by spouses Santos seeking the declaration of
nullity of mortgage over Lot No. 10.

Q21 - What is the basis of the plaintiffs in arguing that the mortgage
over Lot No. 10 is void?

A - The plaintiffs contended that a mortgage could not have been

validly constituted over Lot No. 10 because they were not the owners
of the property when the mortgage was created.

Q22 - What can you say about the plaintiffs contention?

A - Such allegation is baseless and is a desperate attempt to

nullify a valid mortgage.

Q23 - Did you verify the ownership of the plaintiffs of Lot No. 10
before the execution of mortgage contract?

A - Yes, maam.

Q24 - What evidence do you have to prove that the plaintiffs were
the owner of Lot No. 10 before and during the execution of mortgage
contract?

A - Prior to the approval of the loan, our property appraiser and

credit investigator conducted an ocular inspection of the properties
and verified that the spouses were in fact the owners of the properties.
Their residence is even constructed on Lot No. 10 during the execution
of the mortgage up to present.

Q25 - I show to you an Ocular Inspection Report previously

marked as Exhibit 7, is this the document you are referring to?

A - Yes, maam.

Q31 - Are there other evidence to prove their ownership of Lot No.
10?
A - The former tax declaration of the subject lot, Tax Declaration
No. 678910, clearly reflects their ownership of the property as early as
12 September 1990 or a little less than two years prior to the
constitution of mortgage.

Q32 - I show to you this Tax Declaration No. 678910 marked as

Exhibit 8, is this the same tax declaration which proves the plaintiffs
ownership over Lot No. 10?

A - Yes, maam.

Q33 - Do you have anything to add?

A - None, maam.

In witness whereof, I here sign my name this 20th day of March,

2017 at Iligan City, Philippines.

GINA
LINGAN

SUBSCRIBED and SWORN to before me, this 20th day of March, 2017 at
Iligan City, personally appeared GINA LINGAN with LTO Drivers License
No. HE98765 to expire on 08 December 2017, known to me to be the
same person who executed this Judicial Affidavit and who
acknowledged to me that the same as her free act and deed.

Witness my hand and seal.

Doc. No.001
Page No. 002
Book No.001
Series of 2017
LAWYERS ATTESTATION

I, Lainera M. Nassief under my own oath as a lawyer hereby

attest that I conducted the examination of the witness, that I have
faithfully recorded the questions I asked and the corresponding
answers that the witness gave, and that neither I nor any other person,
then present or assisting me coached the witness regarding her
answers.

In witness whereof, I here sign my name this 20th day of March,

2017 at Iligan City, Philippines.

Atty. Lainera M.
Nassief

SUBSCRIBED and SWORN to before me, this 20th day of March, 2017 at
Iligan City, personally appeared Gina Lingan with LTO Drivers License
No. IR7890123 to expire on 08 December 2017. I further certify that I
personally examined the affiant and I am satisfied that she fully
understood and voluntarily executed the foregoing attestation.

Witness my hand and seal.

Doc. No. 001

Page No. 002
Book No.001
Series of 2017
Copy furnished: (by personal service)

ATTY. May Nanalo

Counsel for the Plaintiffs