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PHILIPPINE BANKING CORPORATION v. ARTURO DY

This case has been cited 4 times or more.

	GR No. 173548 2014-10-15	ANDRES v. PHILIPPINE NATIONAL BANK LEONEN, J.
A petition for review on certiorari shall raise only questions of law.[63] The core of the issues presented requires a determination of whether PNB was in good faith and exercised due diligence in accepting the property mortgaged by Spouses Reynaldo Andres and Janette de Leon. These are questions of fact[64] that fall outside the ambit of this court's power of review.
	GR No. 173548 2014-10-15	ANDRES v. PHILIPPINE NATIONAL BANK LEONEN, J.
This court reiterated the good faith doctrine that applies to innocent mortgagees for value in the 2012 case of Philippine Banking Corporation v. Dy:[82]
	GR No. 173548 2014-10-15	ANDRES v. PHILIPPINE NATIONAL BANK LEONEN, J.
However, the banking industry belongs to a different category than private individuals. Banks are considered businesses impressed with public interest, requiring "high standards of integrity and performance."[88] Consequently, banks must exercise greater care, prudence, and due diligence in their property dealings. The standard operating practice for banks when acting on a loan application is "to conduct an ocular inspection of the property offered for mortgage and to verify the genuineness of the title to determine the real owner(s) thereof."[89]
	GR No. 200468 2014-03-19	MACARIA ARGUELLES v. MALARAYAT RURAL BANK VILLARAMA, JR., J.
In Ursal v. Court of Appeals,[25] we held that where the mortgagee is a bank, it cannot rely merely on the certificate of title offered by the mortgagor in ascertaining the status of mortgaged properties. Since its business is impressed with public interest, the mortgagee-bank is duty-bound to be more cautious even in dealing with registered lands.[26] Indeed, the rule that person dealing with registered lands can rely solely on the certificate of title does not apply to banks. Thus, before approving a loan application, it is a standard operating practice for these institutions to conduct an ocular inspection of the property offered for mortgage and to verify the genuineness of the title to determine the real owners thereof. The apparent purpose of an ocular inspection is to protect the "true owner" of the property as well as innocent third parties with a right, interest or claim thereon from a usurper who may have acquired a fraudulent certificate of title thereto.[27]