7/25/2019 Nisce Case

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United Coconut Planters Bank v. Spouses Samuel and Odette Beluso G.R. No. 159912 u!ust 1"# 2$$"%C&S' On pril 1(# 199(# UCPB !ranted t)e spouses Beluso a Promissor* Notes +ine under a Credit

!reement ,)ere-* t)e spouses Beluso could avail rom t)e ormer credit o up to a ma/imum amount oP1.2 million or a term endin! on pril 0$# 199". &)e spouses constituted a real estate mort!a!e overparcels o land in Ro/as Cit*# covered -* &ranser Certiicates o &itle No. &01509 and &2"2# asadditional securit* or t)e o-li!ation. &)e Credit !reement ,as amended su-se3uentl* to increase t)eamount o t)e Promissor* Notes +ine to a ma/imum o P2.05 million and to e/tend t)e term to %e-ruar*2# 199. &)e t)ree promissor* notes ,ere rene,ed several times. &o completel* avail t)emselves oP2.05 million credit line e/tended to t)em -* UCPB# t)e spouses Beluso e/ecuted t,o more promissor*notes or a total o P05$# $$$.$$. 4o,ever# t)e spouses Beluso alle!ed t)at t)e amounts covered -* t)esaid last t,o promissor* notes ,ere never released or credited to t)eir account and claimed t)at t)eprincipal inde-tedness ,as onl* P2 million. n an* case# UCPB applied interest rate on t)e dierentpromissor* notes ran!in! rom 16 to 076. %rom 199( to %e-ruar* 199 t)e spouses ,ere a-le to pa*t)e total amount o P"(0# (92.$0. ter ,)ic)# on %e-ruar* 2# 199 to 8une 199# t)e interest andpenalt* on t)e o-li!ations o t)e spouses Beluso ,ere continuousl* c)ar!ed -* UCPB. 4o,ever# t)espouses ailed to make an* pa*ment. UCPB demanded t)at t)e spouses s)ould pa* t)eir total o-li!ationo P2# 902# 570.$$ plus 256 attorne*s ees# -ut t)e spouses ailed to compl* t)ere,it). UCPB oreclosedt)e properties mort!a!ed -* t)e spouses to secure t)eir credit line. &)e spouses t)en iled a petition orannulment# accountin! and dama!ed a!ainst UCPB ,)ic) t)e court ruled in avor o t)em. &)e UCPBiled a motion or reconsideration -ut it ,as denied or lack o merit -* t)e R&C. SSU:' ;)et)er or not

t)ere e/ists a principle o mutualit* -et,een t)e contractin! parties ,)ic) is valid and enorcea-le. 4:+ or =prime rate> allo,ed -* t)is court in Polotan