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Fortune Motors (Phils.) Corp., et al. vs. Court of Appeals, et al.

FORTUNE MOTORS (PHILS.) CORPORATION and EDGAR L. RODRIGUEZA, petitioners vs. THE HONORABLE COURT OF APPEALS and FILINVEST CREDIT CORPORATION, respondents.

G.R. No. 112191 | 1997-02-07

D E C I S I O N


PANGANIBAN, J.:

To fund their acquisition of new vehicles (which are later retailed or resold to the general public), car dealers normally enter into wholesale automotive financing schemes whereby vehicles are delivered by the manufacturer or assembler on the strength of trust receipts or drafts executed by the car dealers, which are backed up by sureties. These trust receipts or drafts are then assigned and/or discounted by the manufacturer to/with financing companies, which assume payment of the vehicles but with the corresponding right to collect such payment from the car dealers and/or the sureties. In this manner,...