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PNB Vs. Encina

PHILIPPINE NATIONAL BANK, Petitioner, versus SPOUSES WILFREDO and ESTELA ENCINA, Respondents.

G.R. No. 174055 | 2008-02-12

D E C I S I O N


Tinga, J.:

The Philippine National Bank (PNB) assails the Decision[1] of the Court of Appeals dated 15 May 2005, rendered in CA-G.R. CV No. 79094 which, among others, declared null and void the interest rate imposed by PNB on the loan obtained from it by respondents and the consequent extrajudicial foreclosure of the properties offered as security for the loan.

The facts are summarized by the appellate court, thus:

On September 13, 1995, as additional capital for their metal craft business, plaintiffs-appellants ENCINA obtained a P500,000.00 loan with defendant-appellee PNB, secured by a promissory note, a real estate...