Back

Banco Filipino Savings and Mortage Bank vs. Lala Realty Services Corporation.

BANCO FILIPINO SAVINGS AND MORTGAGE BANK, Petitioner, versus TALA REALTY SERVICES CORPORATION, Respondent.

G.R. No. 142672 | 2006-09-27

THIRD DIVISION
 
D E C I S I O N 
 
CARPIO MORALES, J.: 
 
In 1979, the Banco Filipino Savings and Mortgage Bank (Banco Filipino) decided to reduce and unload some of its branch site holdings in order to conform to the limit set for real estate investment under Sections 25(a) and 34 of Republic Act No. 337, as amended (General Banking Act) .[1] For this purpose, the majority of the stockholders agreed to form a corporation known as the Tala Realty Services Corporation (Tala) to which some of Banco Filipino's existing branch sites could be unloaded. The arrangement was that Banco Filipino would transfer some of its...