depositor did not present the certificate of deposit (Citybank, N.A., vs. Sps. Cabamongan,
G.R. No. 146918, May 2, 2006).
Q: Is the bank liable when an employee encashed a check without the requisite of endorsement?
A: Yes. The fiduciary nature of the relationship
between the bank and the depositors must always be of paramount concern. (Philippine
Savings Bank vs. Chowking, G.R. No. 177526, July 04, 2008). E. NATURE OF BANK FUNDS AND BANK DEPOSITS Q: What is the deposit function of banks?
A: The function of the bank to receive a thing,
primarily money, from depositors with the obligation of safely keeping it and returning the same.
Q: What are the kinds of deposits between a bank and its depositors?
A:
1. As debtor‐creditor:
a. Demand deposits – all those liabilities of banks which are denominated in the Philippine currency and are subject to payment in legal tender upon demand by representation of checks.
b. Savings deposits – the most common type of deposit and is usually evidenced by a passbook.
Note: The requirement of presentation of passbooks is usually included in the terms and conditions printed in the passbooks. A bank is negligent if it allows the withdrawal without requiring the presentation of passbook (BPI v. CA, GR No. 112392, Feb. 29, 2000).
c. Negotiable order of withdrawal account (NOWA) – Interest‐bearing
deposit accounts that combine he payable on demand feature of checks and investment feature of saving accounts.
d. Time deposit – an account with fixed term; payment of which cannot be legally required within such a specified number of days.
2. As trustee‐trustor: Trust account – a savings account, established under a trust agreement containing funds administered by the bank for the benefit of the trustor or another person or persons. 3. As agent‐principal: a. Deposit of checks for collection b. Deposit for specific purpose c. Deposit for safekeeping Q: What are the types of deposit accounts? A: 1. Individual; or 2. Joint:
a. “And” account – the signature of both co‐depositors are required for withdrawals.
b. “And/or” account – either one of the co‐depositors may deposit and withdraw from the account without the knowledge consent and signature of the other.
Q: Is an anonymous account prohibited?
A:
GR: Anonymous accounts or those under
fictitious names are prohibited. (R.A. 9160 as
amended by by R.A. 9194; BSP Circular No. 251, July 21, 2000)
XPN: In case where numbered accounts is
allowed such as in foreign currency deposits. However, banks/non‐bank financial institutions should ensure that the client is identified in an official or other identifying documents. (Sec. 8, R.A. 6426 as amended,
FCDA)
Q: What is the nature of a bank deposit?
A: All kinds of bank deposits are loan. The bank
can make use as its own the money deposited. Said amount is not being held in trust for the depositor nor is it being kept for safekeeping.
(Tang Tiong Tick v. American Apothecaries, G.R. No. 43682, Mar. 31, 1938)
Q: In the enforcement of obligations concerning deposit, will the remedy of mandamus lie?
A: No, because all kinds of deposit are loans.
Thus, the relationship being contractual in nature, mandamus cannot be availed of because mandamus will not lie to enforce the performance of contractual obligations. (Lucman
v. Alimatar Malawi, G.R. No. 159794, Dec. 19, 2006)
Q: Does the fiduciary nature of the bank‐ depositor relationship convert the contract between banks and depositors to a trust agreement?
A: No, thus, failure by the bank to pay the
depositor is failure to pay simple loan, and not a breach of trust. (Consolidated Bank and Trust
Corp. v. CA, G.R. No. 138569, Sept. 11, 2003)
Q: After procuring a checking account, the depositor issued several checks. He was surprised to learn later that they had been dishonored for insufficient funds. Investigation disclosed that deposits made by the depositor were not credited to its account. Is the bank liable for damages?
A: Yes, the depositor expects the bank to treat his
account with utmost fidelity, whether such account consist only of a few hundred pesos or of millions. The bank must record every single transaction accurately, down to the last centavo, and as promptly as possible. This has to be done if the account is to reflect at any given time the amount of money the depositor can dispose of as he sees fit, confident that the bank will deliver it as and to whomever he directs. A blunder on the part of the bank, such as the dishonor of the check without good reason, can cause the depositor not a little embarrassment if not also financial loss and perhaps even civil and criminal litigation. (Simex Intl. v. CA, G.R. No. 88013, Mar.
19, 1990)
Q: Is a safety deposit box a form of deposit or lease? A: The contract for the use of a safe deposit box should be governed by the law on lease. Under the old banking law, a safety deposit box is a special deposit. However, the new General Banking Law, while retaining the renting of safe deposit box as one of the services that the bank may render, deleted reference to depository
function. (Divina, Handbook on Philippine
Commercial Law) F. STIPULATION ON INTERESTS Q: What are the rules on stipulation of interests? A:
1. Central Bank Circular 416 – 12% per annum in cases of:
a. Loans
b. Forbearance of money, goods and credits
c. Judgement involving such loan or forbearance, in the absence of express agreement as to such rate of interest
Note: During the interim period from the date of judgment until actual payment.
Pursuant to P.D. No. 116 amending Act No. 2655 (Usury Law), the Central Bank of the Philippines issued Circular No. 416 raising the legal rate of interest from 6% to 12% per annum.
In the absence of a stipulation as to interest, the loan due will now earn interest at the legal rate of 12% per annum. (Sulit v. CA, G.R. No. 119247, Feb. 17, 1997).
2. Interest accruing from unpaid interest – interest due shall earn interest from the time it is judicially demanded although the obligation may be silent upon this point.
Q: If the bank was forbidden by Central Bank to do business, does it still have the obligation to pay interest on deposit?
A: No, because a bank lends money, engages in
international transactions, acquires foreclosed mortgaged properties or their proceeds and generally engages in other banking and financing activities in order that it can derive income therefrom. Therefore, unless a bank can engage in those activities from which it can derive income, it is inconceivable how it can carry on as a depository obligated to pay interest on money deposited with it. (Fidelity & Savings and
Mortgage Bank v. Cenzon, G.R. No. L‐46208, Apr. 5, 1990)