This case has been cited 1 times or more.
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2006-12-19 |
TINGA, J. |
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| This Court elucidated on the matter in Guingona, Jr., et al. v. The City Fiscal of Manila, et al.,[34] citing Serrano v. Central Bank of the Philippines,[35] thus:Bank deposits are in the nature of irregular deposits. They are really loans because they earn interest. All kinds of bank deposits, whether fixed, savings, or current are to be treated as loans and are to be covered by the law on loans (Art. 1980, Civil Code; Gullas v. Phil. National Bank, 62 Phil. 519). Current and savings deposits are loans to a bank because it can use the same. The petitioner here in making time deposits that earn interest with respondent Overseas Bank of Manila was in reality a creditor of the respondent Bank and not a depositor. The respondent Bank was in turn a debtor of petitioner. Failure of the respondent Bank to honor the time deposit is failure to pay its obligation as a debtor and not a breach of trust arising from a depository's failure to return the subject matter of the deposit. (Emphasis supplied.)[36] | |||||