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Hernandez, et al vs. Rural Bank of Lucena, Inc., et al

FRANCISCO S. HERNANDEZ and JOSEFA U. ATIENZA, plaintiffs-appellees, vs. RURAL BANK OF LUCENA, INC., CENTRAL BANK OF THE PHILIPPINES, in its capacity as Liquidator of Rural Bank of Lucena, and JOSE S. MARTINEZ, in his capacity as Receiver of Rural Bank of

G.R. No. L-29791 | 1978-01-10

D E C I S I O N

AQUINO, J:

This case is about the propriety of a separate action to compel a distressed rural bank, which is under judicial liquidation, to accept a check in payment of a mortgage debt. The fact are as follows:

On March 21, 1961 the spouses Francisco S. Hernandez and Josefa U. Atienza obtained from the Rural Bank of Lucena, Inc. a loan of P6,000 which was payable on March 21, 1962. The loan was secured by a mortgage on their two lots situated in Cubao, Quezon City with a total area of 600 square meters. The interest for one year was paid in advance.

About three months after that loan was obtained, the Lucena bank became...