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GC Dalton Industries, Inc. Vs. Equitable PCI Bank

GC DALTON INDUSTRIES, INC., Petitioner, versus EQUITABLE PCI BANK,Respondent.

G.R. No. 171169 | 2009-08-24

D E C I S I O N


CORONA, J.:

In 1999, respondent Equitable PCI Bank extended a P30-million credit line to Camden Industries, Inc. (CII) allowing the latter to avail of several loans (covered by promissory notes) and to purchase trust receipts. To facilitate collection, CII executed a "hold-out" agreement in favor of respondent authorizing it to deduct from its savings account any amounts due. To guarantee payment, petitioner GC Dalton Industries, Inc. executed a third-party mortgage of its real properties in Quezon City[1] and Malolos, Bulacan[2] as security for CII's loans.[3]

CII did not pay its obligations despite respondent's...