SC: Foreign banks may possess properties

Republic Act 10641, enacted in 2014, allowed the entry of foreign banks into the Philippines and they may possess foreclosed property, according to the High Court.MANILA, Philippines — Foreign banks operating in the country are allowed to acquire real properties for non-payment of loans, subject to limitations, the Supreme Court has ruled.

Instead, the right over such properties, the SC said, should be transferred to a qualified Filipino within the five-year period. In 2003, when the drawdowns on the credit line became due and demandable, Maybank sent a letter to 4E Steel and the Ecraelas to remind them to settle their outstanding obligation.

The bank, meanwhile, filed a petition for extrajudicial foreclosure of the mortgaged properties. The Ecraelas and 4E Steel then sought the court’s issuance of an injunction that would stop the foreclosure, claiming Maybank, a corporation owned and controlled by foreigners, is disqualified from acquiring lands in the Philippines.

In its decision, the SC said that since the foreclosure sale took place in 2003, the applicable law is RA 4882, not RA 10641, because the latter does not contain a retroactivity clause.Kotex advocates menstrual health education for young girls through innovative video gameASUS solidifies commitment, collects over one ton of recycled waste with CORAThe Manila Police District is still on the lookout for at least nine men who beat to death a 20-year-old student outside a bar last Oct. 20.

Source: Law Daily Report (lawdailyreport.net)

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