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JAPRL Development Corp. et al., vs. Security Bank Corporation

JAPRL DEVELOPMENT CORP., PETER RAFAEL C. LIMSON AND JOSE UY AROLLADO, PETITIONERS, VS. SECURITY BANK CORPORATION, RESPONDENT.

G.R. No. 190107 | 2011-06-06

THIRD DIVISION
 
D E C I S I O N

CARPIO MORALES, J.:

JAPRL Development Corporation (JAPRL), a domestic corporation engaged in fabrication, manufacture and distribution of steel products, applied for a credit facility (Letter of Credit/Trust Receipt) in the amount of Fifty Million (P50,000.000) Pesos with Security Bank Corporation (SBC).
 
The application was approved and the Credit Agreement took effect on July 15, 1996,1
 
On November 5, 2001, petitioners Peter Rafael C. Limson (Limson) and Jose Uy Arollado (Arollado), JAPRL Chairman and President, respectively, executed a Continuing Suretyship Agreement (CSA)2 in favor of SBC...