Legal 101 Loans

Employee no. (6-digit)

Last name

1. Obligations may arise from any of the following, except:

• Contracts

• QContracts

• Prestation

• Law

2. It is a wrong committed without any pre-existing relations between the parties:

• Quasi-delict

• Quasi-contract

• Crime

• Contract

3. D borrowed P1MM from ABC Bank. D died leaving the loan with ABC Bank unpaid. Which of the following statements is correct?

• ABC Bank can compel the heirs of D to continue the loan until maturity

• The obligation of D to pay is extinguished

• The heirs automatically becomes the debtors

• The entire obligation becomes due and demandable

4. Anna and Ben are husband and wife. Ben applied for a loan with XYZ Bank offering a collateral registered under his name only. Which of the following is correct?

• Anna should sign the promissory note as co-borrower

• Anna should sign the Real Estate Mortgage as co-mortgagor

• Anna need not sign on any loan or collateral documents

• Only Ben is required to sign the loan and collateral documents

5. A and B (husband and wife) have an outstanding loan with a Bank covered with real estate mortgaged under the spouses name. A (American) obtained and was granted a divorce in USA. B (Filipina) remarried with C (Filipino). What will happen to the outstanding loan with the Bank?

• C becomes a co-borrower

• A and B are still principally liable for the payment of the loan

• A should pay the loan

• The Bank should foreclose the collateral property

6. Whose consent is/are required in mortgaging a property to be acquired through loan, if the client is in a “live-in” arrangement?

• If the client is married, the consent of his legal wife

• If the client is single, the consent of his live-in partner

• If the client is separated, no consent is required

• The consent of his live-in partner regardless of his civil status

7. A (mother) applied for a loan with B’s (minor child) property as collateral. Is this allowed?

• This is allowed provided B signed as co-mortgagor

• This is allowed provided approved by the court

• This is not allowed since B as minor cannot give his consent

• This is not allowed since collateral should be owned by the borrower

8. A executed a special power of attorney (SPA) appointing his friend B (a foreigner) as his AIF. Is this allowed?

• No, AIF should be a relative of the principal

• No, AIF should be a Filipino citizen

• Yes, anybody can be appointed as AIF

• Yes, provided the AIF is a resident of the Philippines