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Payments made by the Mendozas directly to Philam Life are in compliance with their own prestation under the loan agreements. And although these payments could result in the reduction of the actual amount which could ultimately be collected from IBAA, the latter's separate undertaking under its L/Cs remains.
Whereas Philam Life and the Mendoza spouses separately maintain that IBAA’s obligation under said two (2) L/Cs is original and primary and is not reduced by the direct payments made by the Mendozas to Philam Life.
Payments made by the Mendozas directly to PHILAM Life are in compliance with their own prestation under the loan agreements. And although these payments could result in the reduction of the actual amount which could ultimately be collected from IBAA, the latter’s separate undertaking under its Letters of Credits remains.
Unequivocally, the subject standby Letters of Credit secure the payment of any obligation of the Mendozas to Philam Life including all interests, surcharges and expenses thereon but not to exceed P600,000.00.
To secure payment, Spouses Mendoza contracted with IBAA for the issuance of 2 irrevocable standby Letters of Credit (L/C) in favor of Philam Life. Spouses Mendoza failed to pay Philam Life the amortizations so Philam Life informed IBAA and demanded payment.
Spouses Mendoza failed to pay PhilAm Life, the latter now informed IBAA declaring both loans as due and demandable, IBAA contested that calling for entire loan is ill for the spouses already have partial payment that should be deducted to the entire loan. The mortgage has been bid to IBAA.
People also ask
Why did the Mendozas fail to pay Philam Life?
Who issued a standby letter of credit for Philam Life?
Does Ibaa have a liability to Philam Life?
Can Ibaa escape the obligation to pay Philam Life?
The Spouses Mendoza obtained loans from Philam Life totaling PHP 600,000 secured by irrevocable standby letters of credit from Insular Bank. When the Mendozas defaulted on payments, Philam Life demanded payment from Insular Bank.
