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Proton Pilipinas Corporation, et al. vs Banque Nationale de Paris

PROTON PILIPINAS CORPORATION, AUTOMOTIVE PHILIPPINES, ASEA ONE CORPORATION and AUTOCORP, Petitioners, versus BANQUE NATIONALE DE PARIS,[1] Respondent.

G.R. No. 151242 | 2005-06-15

D E C I S I O N 


CARPIO MORALES, J.: 

It appears that sometime in 1995, petitioner Proton Pilipinas Corporation (Proton) availed of the credit facilities of herein respondent, Banque Nationale de Paris (BNP). To guarantee the payment of its obligation, its co-petitioners Automotive Corporation Philippines (Automotive), Asea One Corporation (Asea) and Autocorp Group (Autocorp) executed a corporate guarantee[2] to the extent of US$2,000,000.00. BNP and Proton subsequently entered into three trust receipt agreements dated June 4, 1996,[3] January 14, 1997,[4] and April 24, 1997.[5] 

Under the terms of the trust receipt...