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    PG 11 #1 Sps. Andal vs. PNB

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    Harry Dave Ocampo Pagaoa
    The document is a summary of a court case between spouses who obtained a loan from a bank. It details that the spouses executed promissory notes and mortgages for the loan, with interest rates ranging from 17.5-27%. While the spouses partially paid back the loan, the bank foreclosed on the remaining mortgaged properties. The spouses argued the increased interest rates were invalid, but the court held that the spouses agreed to pay interest as part of the loan agreement, and while the specific interest rates were voided, the requirement to pay interest on the loan was still binding.

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    PG 11 #1 Sps. Andal vs. PNB

    Uploaded by

    Harry Dave Ocampo Pagaoa
    382 views1 page
    The document is a summary of a court case between spouses who obtained a loan from a bank. It details that the spouses executed promissory notes and mortgages for the loan, with interest rates ranging from 17.5-27%. While the spouses partially paid back the loan, the bank foreclosed on the remaining mortgaged properties. The spouses argued the increased interest rates were invalid, but the court held that the spouses agreed to pay interest as part of the loan agreement, and while the specific interest rates were voided, the requirement to pay interest on the loan was still binding.

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    Pg 11 #1 Sps. Andal vs. PNB

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    The document is a summary of a court case between spouses who obtained a loan from a bank. It details that the spouses executed promissory notes and mortgages for the loan, with interest rates ranging from 17.5-27%. While the spouses partially paid back the loan, the bank foreclosed on the remaining mortgaged properties. The spouses argued the increased interest rates were invalid, but the court held that the spouses agreed to pay interest as part of the loan agreement, and while the specific interest rates were voided, the requirement to pay interest on the loan was still binding.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    382 views1 page

    PG 11 #1 Sps. Andal vs. PNB

    Uploaded by

    Harry Dave Ocampo Pagaoa
    The document is a summary of a court case between spouses who obtained a loan from a bank. It details that the spouses executed promissory notes and mortgages for the loan, with interest rates ranging from 17.5-27%. While the spouses partially paid back the loan, the bank foreclosed on the remaining mortgaged properties. The spouses argued the increased interest rates were invalid, but the court held that the spouses agreed to pay interest as part of the loan agreement, and while the specific interest rates were voided, the requirement to pay interest on the loan was still binding.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    DOCTRINE: That the rate of interest was subsequently declared illegal and unconscionable

    does not entitle petitioners-spouses to stop payment of interest. It should be emphasized that only
    the rate of interest was declared void. The stipulation requiring petitioners-spouses to pay interest
    on their loan remains valid and binding.

    SPOUSES BAYANI H. ANDAL AND GRACIA G. ANDAL vs. PHILIPPINE NATIONAL


    BANK REGISTER OF DEEDS OF BATANGAS CITY JOSE C. CORALES
    G.R. No. 194201  November 27, 2013
    SECOND DIVISION, PEREZ, J.:

    FACTS:

    Sept. 7, 1995, petitioners obtained a loan from respondent bank (P21.8M) for which 12
    promissory noteswere executed, with varying interest rates (17.5-27%). It was agreed that the
    rate of interest may beincreased or decreased with prior notice to the petitioners in the event of
    changes in interest ratesprescribed by law or the Monetary Board.Petitioners also executed a real
    estate mortgage in favor of the respondent bank over 5 parcels of lands,including all
    improvements thereon, covered by Transfer of Certificate Titles of the Registry of
    Deeds.Respondent bank advised petitioners to pay their loan, otherwise they would declare it due
    anddemandable. Petitioners paid P14.8M to avoid foreclosure. Respondent bank executed a
    release of realestate mortgage over two of the parcels of land. Despite payment, respondent
    foreclosed the remainingreal estate mortgage over the remaining three parcels of land. A public
    auction sale resulted in respondent bank as the winning bidder. A Certificate of sale of
    theproperties was issued. Petitioners filed a complaint for annulment of mortgage, sheriff’s
    certificate of sale, declaration of nullity of the increased interest rates and penalty charges plus
    damages.
    ISSUE:

    Whether the interest should be imposed on the loan.

    HELD: 
    Yes.

    It is clear from the contract of loan between petitioners-spouses and respondent bank that
    petitioners-spouses, as borrowers, agreed to the payment of interest on their loan obligation. That
    the rate of interest was subsequently declared illegal and unconscionable does not entitle
    petitioners-spouses to stop payment of interest. It should be emphasized that only the rate of
    interest was declared void. The stipulation requiring petitioners-spouses to pay interest on their
    loan remains valid and binding. They are, therefore, liable to pay interest from the time they
    defaulted in payment until their loan is fully paid.

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