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Quirino Gonzales Logging Concessionaire, Quirino & Eufemia Gonzales vs CA and Republic Planters Bank

QUIRINO GONZALES LOGGING CONCESSIONAIRE, QUIRINO GONZALES and EUFEMIA GONZALES, petitioners, vs. THE COURT OF APPEALS (CA) and REPUBLIC PLANTERS BANK, respondents.

G.R. No. 126568 | 2003-04-30

D E C I S I O N

CARPIO-MORALES, J.:

In the expansion of its logging business, petitioner Quirino Gonzales Logging Concessionaire (QGLC), through its proprietor, general manager - co-petitioner Quirino Gonzales, applied on October 15, 1962 for credit accommodations[1] with respondent Republic Bank (the Bank), later known as Republic Planters Bank.

The Bank approved QGLC's application on December 21, 1962, granting it a credit line of P900,000.00[2] broken into an overdraft line of P500,000.00 which was later reduced to P450,000.00 and a Letter of Credit (LC) line of P400,000.00.[3]

Pursuant to the grant, the Bank and petitioners QGLC and the...