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Prudential Bank & Trust Co. vs. Comm. Builders etal

PRUDENTIAL BANK & TRUST CO., petitioner, vs. COMMUNITY BUILDERS CO., INC., et al., respondents.

G.R. No. L-31600 | 1988-09-12

D E C I S I O N


NARVASA, J.:

The sole issue raised in this case turns on the interpretation of one of two documents entitled deeds of assignment ---- whether it is to be regarded as security for certain specific obligations, or as an outright sale (assignment) of receivables.

The deeds 1 were executed in relation to the extension by Prudential Bank & Trust Company of credits on current accounts (or an overdraft line) to Community Builders Co., Inc., in consideration of which the latter agreed to pay on demand all advances or deliveries of money made by the former, with interest at the rate of 6% per annum for the first P100,000.00, and...