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1 Penned by Justice Lorna S. Lombos-dela Fuente, with the concurrence of Justices Salome A. Montoya and Quirino D. Abad-Santos, Jr.

2 Civil Case No. 7734, Branch 132, presided over by Judge Herminio I. Benito.

3 Representing the deficiency claim of respondent bank, inclusive of interest charges, as of March 31, 1984.

4 Rollo, 47; Decision of the RTC, 4.

5 Rollo, 11; Annex F of the Petition.

6 Ibid., Open-End Mortgage on Inventory, Annex G of the Petition, 1.

7 Ibid., 69; Comment of Private Respondents, 2.

8 Ibid., 28; Decision of the Court of Appeals, 3.

9 Ibid.

10 Ibid., 28-29; Decision of the Court of Appeals, 3-4.

11 Ibid., 18-21; Petition, 13-16.

12 Ibid.

13 Art. 1484. In a contract of sale of personal property the price of which is payable in installments, the vendor may exercise the following remedies:

(1) Exact fulfillment of the obligation, should the vendee fail to pay;

(2) Cancel the sale, should the vendees failure to pay cover two or more installments;

(3) Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendees failure to pay cover two or more installments. In this case, he shall have no further action against the purchaser to recover any unpaid balance of the price. Any agreement to the contrary shall be void. (Emphasis supplied)

14 Art. 2115. The sale of the thing pledged shall extinguish the principal obligation, whether or not the proceeds of the sale are equal to the amount of the obligation, interest and expenses in a proper case. If the price of the sale is more than said amount, the debtor shall not be entitled to the excess, unless otherwise agreed. If the price of the sale is less, neither shall the creditor be entitled to recover the deficiency notwithstanding any stipulation to the contrary. (Emphasis supplied)

15 Rollo, 14-18; Petition, 9-13.

16 G.R. No. L-11466, May 23, 1958 (unpublished).

17 47 Phil. 513.

18 See Garrido v. Tuason, 133 Phil. 717; Philippine National Bank v. Manila Investment and Construction, Inc., 38 SCRA 462.

19 Conte vs. Commission on Audit, 264 SCRA 19; Mendiola v. Court of Appeals, 258 SCRA 492; Causapin vs. Court of Appeals, 233 SCRA 615.

20 P.T. Cerna Corporation vs. Court of Appeals, 221 SCRA 19; Benitez v. Intermediate Appellate Court, 154 SCRA 41; Filinvest Corporation v. Relova, 117 SCRA 420.

21 Rollo, 29-30, 34-35; Annex C of the Petition; Decision of the CA, 4-5.

22 Rollo, 35; Annex C of the Petition; Decision of the CA, 5.22

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