BANKING.docx

At this point let it be stated that the courts below

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At this point, let it be stated that the courts below and even this Court have no jurisdiction to resolve the issue whether there was bad faith among the Monesets, Canora and Bundalo. Canora was never impleaded. Bundalo has not been served with summons. WHEREFORE, the petition is DENIED . The decision of the Regional Trial Court of Cebu City, Branch 24, promulgated on February 5, 1993 and the decision of the Court of Appeals dated June 28, 1999 are hereby AFFIRMED . However, in the higher interest of substantial justice, the Court MODIFIES the same to the effect that the portion ordering the Rural Bank of Larena (Siquijor), Inc. to give petitioner the preferential right to redeem the house and lot covered by Transfer Certificate of Title No. 78374 is DELETED for lack of legal basis. No costs. SO ORDERED. G.R. No. 213241, August 01, 2016 PHILIPPINE NATIONAL BANK , Petitioner , v. JUAN F. VILA , Respondent . D E C I S I O N PEREZ, J. : For resolution of the Court is the instant Petition for Review on Certiorari 1 filed by petitioner Philippine National Bank (PNB), seeking to reverse and set aside the Decision 2 dated 18 December 2013 and Resolution 3 dated 13 June 2014 of the Court of Appeals (CA) in CA-G.R. CV No. 97612. The assailed decision and resolution affirmed the 22 June 2011 Decision 4 of the Regional Trial- Court (RTC) of Villasis, Pangasinan, Branch 50 which found that petitioner PNB is not a mortgagee in good faith. The Facts Petitioner PNB is a universal banking corporation duly authorized by Bangko Sentral ng Pilipinas (BSP) to engage in banking business. Sometime in 1986, Spouses Reynaldo Cormsta and Erlinda Gamboa Cornista (Spouses Cornista) obtained a loan from Traders Royal Bank (Traders Bank). 5 To secure the said obligation, the Spouses Cornista mortgaged to the bank a parcel of land with an area of 451
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square meters designated as Lot 555-A-2 and registered under Transfer Certificate of Title (TCT) No. 131498 in their names by the Register of Deeds of Pangasinan. For failure of the Spouses Cornista to make good of their loan obligation after it has become due, Traders Bank foreclosed the mortgage constituted on the security of the loan. After the notice and publication requirements were complied with, the subject property was sold at the public auction on 23 December 1987. During the public sale, respondent Juan F. Vila (Vila) was declared as the highest bidder after he offered to buy the subject property for P50,000.00. The Certificate of Sale dated 13 January 1988 was duly recorded in TCT No. 131498 under Entry No. 623599 . 6 chanrobleslaw To exercise his right of ownership, Vila immediately took possession of the subject property and paid the real estate taxes corresponding thereon. On 11 February 1989, a Certificate of Final Sale was issued to Vila after the one-year redemption period had passed without the Spouses Cornista exercising their statutory right to redeem the subject property. He was, however, prevented from consolidating the ownership of the property under his name because the owner's copy of the certificate of title was not turned over to him by the Sheriff.
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