G.R. No. 209837 - GOLDWELL PROPERTIES TAGAYTAY, INC., NOVA NORTHSTAR REALTY CORPORATION, AND NS NOVA STAR COMPANY, INC., REPRESENTED HEREIN BY FLOR ALANO, VS. METROPOLITAN BANK AND TRUST COMPANY.D E C I S I O N - Supreme Court E-Library

Ruling

accordingly reduced and covered by a separate promissory note to mature on July 31, 2008, and which amount shall be paid as follows: Two-year moratorium on the payment of the principal portion of the obligation. Debtor-mortgagor and sureties shall pay quarterly principal payment on July 31, 2005 and every end of the quarter thereafter without need of demand. In addition to the above principal payment, debtor-mortgagor and sureties shall pay interest at 10% [ per annum ] for the first year repriceable every quarter thereafter based on the prevailing market rate plus 10% [VAT], which shall be paid in arrears to Metrobank starting October 31, 2003 and every end of the quarter thereafter without need of demand. The remaining obligation (after Nos. 1 and 2) shall be the principal amount of the new obligation and shall be paid in five years from July 31, 2003, in the same manner as above. [16] Moreover, the DSAs provided that: 4. Default in the payment to METROBANK of any amounts due to it on stipulated dates shall have the following effects, alternatives, concurrent and cumulative with each other; a. All payments may, at METROBANK'S option, be applied to the obligations as reverted to the original amount specified in the Third Whereas Clause above, the outstanding amount of which may be treated as totally and immediately due and demandable. b. METROBANK, may at its option, enforce the terms and conditions of the original loan documents evidencing the obligations under the First Whereas Clause with all interest, penalties and other charges due thereon; c. Penalty at the rate of 18% per annum shall be imposed on all defaulted amortizations from date of default to full payment thereof; d. Foreclose the Real Estate Mortgages referred in the First Whereas Clause above, judicially or extrajudicially, at METROBANK's option[.] [17] Pursuant to the DSAs, the debtor companies' total restructured balance amounted to P62,447,492.33. Thus, Goldwell and Nova executed PNs amounting to P9,305,079.17 and P12,878,966.66, respectively, both in favor of Metrobank. [18] The figures represented the principal, as well as the capitalized and recomputed outstanding interests plus the corresponding VAT thereto. [19] At this point, Metrobank confirmed in a letter [20] dated November 5, 2003 addressed to an officer of Home Development Mutual Fund (Pag-Ibig Fund) that the petitioners had good credit standing and were valued customers of the bank. According to the debtor companies, they still paid their dues until August 2004. [21] However, Metrobank clarified that they only paid the interest amortizations and/or penalty charges. [22] In addition, the bank presented commercial loans note/maintenance history inquiry [23] logs to show that the petitioners' last amortization payments were made on August 2, 2004. In a letter [24] dated October 12, 2004, the petitioners requested Metrobank to allow them to pay the equivalent loan value of their collaterals as full payment of the loan.