Decision
Development Bank Of The Philippines v. Arcilla
G.R. No. 161397 · 2005-06-30 · SR, J. · LawPhil
DEVELOPMENT BANK OF THE PHILIPPINES, Petitioner, vs. FELIPE P. ARCILLA, JR., Respondent. x - - - - - - - - - - - - - - - - - - - - - - -x G.R. No. 161426 June 30, 2005 FELIPE P. ARCILLA, JR., Petitioner, vs. DEVELOPMENT BANK OF THE PHILIPPINES, Respondent.
SR., J.:
Atty. Felipe P. Arcilla, Jr. was employed by the Development Bank of the Philippines (DBP) in October 1981. About five or six months thereafter, he was assigned to the legal department, and thereafter, decided to avail of a loan under the Individual Housing Project (IHP) of the bank.1 On September 12, 1983, DBP and Arcilla executed a Deed of Conditional Sale2 over a parcel of land, as well as the house to be constructed thereon, for the price of ₱160,000.00. Arcilla borrowed the said amount from DBP for the purchase of the lot and the construction of a residential building thereon.
He obliged himself to pay the loan in 25 years, with a monthly amortization of ₱1,417.91, with 9% interest per annum, to be deducted from his monthly salary.3 DBP obliged itself to transfer the title of the property upon the payment of the loan, including any increments thereof. It was also agreed therein that if Arcilla availed of optional retirement, he could elect to continue paying the loan, provided that the loan/amount would be converted into a regular real estate loan account with the prevailing interest assigned on real estate loans, payable within the remaining term of the loan account.4 Arcilla was notified of the periodic release of his loan.5 During the period of July 1984 to December 31, 1986, the monthly amortizations for the said account were deducted from his monthly salary, for which he was issued receipts.6 The monthly amortization was increased to ₱1,468.92 in November 1984, and to ₱1,691.51 beginning January 1985.
However, Arcilla opted to resign from the bank in December 1986. Conformably with the Deed of Conditional Sale, the bank informed him, on June 11, 1987, that the balance of his loan account with the bank had been converted to a regular housing loan, thus: Amount converted to PH Loan Interest Rate Remaining Term Monthly Amortization ₱ 155,218.79 - 1 9% 22 yrs. & 6 mos< ₱1,342.72 6,802.45 - 2 9% 21 yrs.
& 10 mos. 59.41 24,342.91 - 3 9% 22 yrs. 212.07 Plus: MRI at PC.
41/thousand ₱1,614.20 76.41 ₱186,364.15 Total