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Gotesco Properties Inc. vs. International Exchange Bank (Union bank)

GOTESCO PROPERTIES, INC., PETITIONER, -VERSUS- INTERNATIONAL EXCHANGE BANK (NOW UNION BANK OF THE PHILIPPINES), RESPONDENT,

G.R. No. 212262 | 2020-08-26

EN BANC
 

DECISION
 
LEONEN, J.:
 
Acceleration clauses in loans for a fixed term give creditors a choice to: (1) defer collection of any unpaid amounts until the period ends; or (2) invoke the clause and collect the entire demandable amount immediately. This right to choose is rendered meaningless if the loan is made demandable only when the term expires.

This resolves a Petition for Review on Certiorari[1] under Rule 45 of the Rules of Court, assailing the Decision[2] and Resolution[3] of the Court of Appeals which found that the 14th Branch of the Regional Trial Court in Nasugbu, Batangas, did not gravely abuse...