This case has been cited 3 times or more.
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2008-03-27 |
VELASCO JR., J. |
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| The provisions of subdivision (c) of this section do not apply to persons negotiating public or corporation securities, other than bills and notes. (Emphasis supplied.) The warranty "that the instrument is genuine and in all respects what it purports to be" covers all the defects in the instrument affecting the validity thereof, including a forged indorsement. Thus, the last indorser will be liable for the amount indicated in the negotiable instrument even if a previous indorsement was forged. We held in a line of cases that "a collecting bank which indorses a check bearing a forged indorsement and presents it to the drawee bank guarantees all prior indorsements, including the forged indorsement itself, and ultimately should be held liable therefor."[48] | |||||
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2006-09-20 |
CALLEJO, SR., J. |
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| Thereafter, Atty. Go, acting as counsel for CVC and Cembrano, filed a "Alternative Motion for Issuance of a Writ of Execution or Entry of Judgment"[31] in the RTC in Civil Case No. 3851. The court issued an order granting the motion. The Sheriffs arrived in the Office of the City Mayor to enforce the writ on November 28, 2002, but were told that the City had already remitted the amount. Thus, the Sheriffs submitted a Return on the Writ of Execution declaring that they failed to enforce the writ on account of the City's claim that it had already remitted the P926,845.00 to CVC. | |||||
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2004-08-13 |
TINGA, J, |
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| Still, even if the bank performed with utmost diligence, the drawer whose signature was forged may still recover from the bank as long as he or she is not precluded from setting up the defense of forgery. After all, Section 23 of the Negotiable Instruments Law plainly states that no right to enforce the payment of a check can arise out of a forged signature. Since the drawer, Samsung Construction, is not precluded by negligence from setting up the forgery, the general rule should apply. Consequently, if a bank pays a forged check, it must be considered as paying out of its funds and cannot charge the amount so paid to the account of the depositor.[77] A bank is liable, irrespective of its good faith, in paying a forged check.[78] | |||||