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PNB vs. Utility Assurance & Surety Co., Inc.,

The Chief and Asst. Chief Legal Counsel for plaintiff-appellee. Ceferino M. Carpio, Jr. for defendant-appellant.

G.R. No. L-39215 | 1989-09-01

R E S O L U T I O N


FELICIANO, J.:

The Kangyo Bank Ltd., Tokyo, Japan, issued Letter of Credit No. 14-10272 in the amount of US$28,150.00 in favor of the Pedro Bartolome Enterprises of Manila to cover an export shipment of logs to Japan. The beneficiary of the Letter of Credit assigned its rights to Lanuza Lumber. On 29 March 1960, Procopio Caderao, doing business under the trade name "Lanuza Lumber," obtained a loan of P25,000.00 from plaintiff-appellee Philippine National Bank (PNB) as evidenced by a promissory note on the security, among other things, of the proceeds of the Letter of Credit. The PNB in addition required Lanuza Lumber...