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Metropolitan Bank & Trust Co. Inc. Vs. SLGT Holdings, Inc., et al.

METROPOLITAN BANK and TRUST COMPANY, INC., Petitioner, versus SLGT HOLDINGS, INC., DANILO A. DYLANCO and ASB DEVELOPMENT CORPORATION, Respondents.

G.R. No. 17581-82 | 2007-09-14

D E C I S I O N


GARCIA, J.:

It happened before; it will likely happen again. A developer embarks on an aggressive marketing campaign and succeeds in selling units in a yet to-be completed condominium project. Short of funds, the developer borrows money from a bank and, without apprising the latter of the pre-selling transactions, mortgages the condominium complex, but also without informing the buyers of the mortgage constitution. Saddled with debts, the developer fails to meet its part of the bargain. The defaulting developer is soon sued by the fully-paid unit buyers for specific performance or refund and is threatened at the same...