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Bank of Commerce vs. Radio Philippines Network Inc. [DECISION]

BANK OF COMMERCE, PETITIONER, VS. RADIO PHILIPPINES NETWORK, INC., INTERCONTINENTAL BROADCASTING CORPORATION, AND BANAHAW BROADCASTING CORPORATION, THRU BOARD OF ADMINISTRATOR, AND SHERIFF BIENVENIDO S. REYES, JR., SHERIFF, REGIONAL TRIAL COURT OF QUEZON CITY, BRANCH 98, RESPONDENTS.

G.R. No. 195615 | 2014-04-21

THIRD DIVISION
D E C I S I O N

ABAD, J.:

In late 2001 the Traders Royal Bank (TRB) proposed to sell to petitioner Bank of Commerce (Bancommerce) for P10.4 billion its banking business consisting of specified assets and liabilities. Bancommerce agreed subject to prior Bangko Sentral ng Pilipinas’ (BSP’s) approval of their Purchase and Assumption (P & A) Agreement. On November 8, 2001 the BSP approved that agreement subject to the condition that Bancommerce and TRB would set up an escrow fund of P50 million with another bank to cover TRB liabilities for contingent claims that may subsequently be adjudged against it, which...