Metrobank Vs SLGT Digest
Metrobank Vs SLGT Digest
Metrobank Vs SLGT Digest
SLGT Holdings
September 14, 2007
Facts:
-
Issue:
1.) WON the declaration of nullity of the entire mortgage constituted on the
project land site and the improvements thereon is valid. YES
2.) WON this nullity extends to the entire mortgage contract YES (related to
Art. 2089)
Held:
1.) The project lot/s and the improvements introduced thereon were
mortgaged in clear violation of of Sec. 18 of PD 957. And to be sure,
Dylanco and SLGT, as Project unit buyers, were not notified of the
mortgage before the release of the loan proceeds by petitioner banks.
Sec. 18 reads:
o