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[G.R. No. 154688.
TIU TSANG vs. BPI
SECOND DIVISION
Gentlemen:
Quoted hereunder, for your information, is a resolution of this
Court dated
G.R. No. 154688 (Elena Tiu Tsang and Tsang Wing Fai vs. Bank of the Philippine Islands and BPI Leasing Corporation.)
This petition for review on certiorari assails the decision and
resolution of the Court of Appeals in CA-G.R. CV No. 63663. The Decision
[1]
cralaw
dated
On April 29, 1993, respondent BPI informed Chanmeco Paper
Industries of the approval of the following credit facilities in its favor: 1)
a medium term loan, amounting to
P50,000,000.00 and payable in three years at the interest rate of 3%
over the Bank Base Rate or 5% over the average 182-day Treasury Bill Rate,
whichever is lower; and 2) a revolving promissory note line, amounting to P5,000,000.00
with a maximum term of 180 days, at the prevailing market rate. Subsequently,
Chanmeco through petitioners Elena Tiu Tsang and Tsang Wing Fai, executed a
real estate mortgage on their properties and a "Continuing Suretyship"
agreement to secure the indebtedness. They also executed two promissory notes
in favor of BPI in the amounts
of P50,000,000.00 and P5,000,000.00.
Chanmeco made payments but was having difficulty in paying
regularly. On January 18, March 14 and P75,000,000.00 by BPI, stating
that they already had a prior outstanding loan of P55,000,000.00 with
Planters Development Bank but were enticed by BPI officials to transfer their
loan upon the promise of an additional P20,000,000.00 loan. They prayed
that the balance of P20,000,000.00 be released to them, the foreclosure
sale be restrained and that petitioners be allowed a new period within which to
pay their loan. The trial court ruled in favor of the petitioners. However the
Court of Appeals reversed the decision of the lower court. Hence, this
petition.
The Court however notes that the parties filed a motion for
judgment on compromise agreement on
. . . WHEREAS, as of P254,870,131.85;
WHEREAS, the parties agreed to a settlement by way of compromise on the outstanding obligation, interests, bank charges and penalties due from the client and sureties-rnortgagors;
NOW THEREFORE, for and in consideration of the foregoing premises, the parties hereby agree as follows:
1.The parties hereby mutually agree that the total settlement amount will be P100,000,000.00 payable as follows:
1.a.Downpayment for the amount of P10,000,000.00 receipt of which is hereby acknowledged.
1.b.The balance of P90,000,000.00 shall be paid under an Installment Program within 3 years in the following manner:
1.b. 1 Year 1 - Week 1 to 51���������������� P375,000.00 per week
Week 52������������������������ P5,375,000.00
1.b. 2 Year 2 - Week 1 to 51���������������� P375,000.00 per week
Week 52������������������������ P5,375,000.00
1.b. 3 Year 3 - Week 1 to 25���������������� P750,000.00 per week
Week 26������������������������ P2,750,000.00
�������������������������� Week 27 to 52�������������� P750,000.00 per week
1.c.Payment Schedule - Client and sureties-mortgagors hereby voluntarily agree to pay the aforesaid installment schedule every Thursday each week for three years or immediately following the banking day should Thursday fall on a holiday or declared to be an official or special holiday.
1.d.Mode of Payment - Client and sureties-mortgagors hereby voluntarily agree to pay the said installment schedule via automatic debit to Chanmeco Paper Industries Phils./Sps. Tsang BPI deposit account.
1.e.Default - In default, client and/or sureties-mortgagors shall be charged with an interest at the rate of 12% on the remaining unpaid amount of the settlement.
2.The parties submit to this Agreement, through an appropriate Motion for Judgment Based on Compromise Agreement for the Approval of the Honorable Supreme Court in G.R. No. 154688.
3.The parties hereby warrant that the signatories to this agreement have been duly authorized by their respective Board of Directors to sign and execute this Agreement and the sureties-mortgagors to sign and execute in their personal capacities.
4.Save those that may hereafter arise as a consequence of willful violation of the terms and conditions of this Agreement, by any of the parties, the parties hereby expressly and absolutely waive, abandon, revise and quitclaim their respective claims and counterclaims against each other in respect to all matters, causes of action, rights, options and interest, whatsoever, as arising out or as a consequence, directly or indirectly, of all the matters and controversies herein compromised between the parties,
5.In the event of default or violation of any of the terms of this Agreement on the part of client and/or the sureties-rnortgagors, the bank and BPI Leasing shall be entitled to the issuance of Writ of Execution with the right to foreclose the mortgage on the real estate mortgage. In such eventuality, the proceeds in the foreclosure shall be applied to the outstanding loan obligation and the balance, if any, shall be paid jointly and solidarily by client and the sureties-mortgagors, Sps. Tsang Wing Fai and Elena Tiu Tsang. [3] cralaw
Finding nothing wrong or infirm with said Compromise Agreement, we hold the same to be binding between the parties.
WHEREFORE, the motion to render judgment based on the compromise agreement is GRANTED. The petition for review on certiorari is DISMISSED. The parties are hereby directed to comply with the provisions of the compromise agreement as stated therein.
SO ORDERED.
Very truly yours,
(Sgd.)TOMASITA B. MAGAY-DRIS
Clerk of Court
Endnotes:
[1] cralaw Rollo, pp. 48-62. Penned by Associate Justice Buenaventura J. Guerrero, with Associate Justices Rodrigo V. Cosico and Eliezer R. Delos Santos concurring.
[2] cralaw
[3] cralaw Rollo, pp. 266-269.
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