Diaz Company obtained a loan from Pacific Bank amounting to P720,000.00 secured by a mortgage over its two (2) parcels of land. Diaz Company entered into a lease with Allied Bank where the latter shall pay its rentals directly to Pacific Bank which bank subsequently closed. Far East Bank and Trust Co. (FEBTC) later on purchased the credit of the Company from Pacific Bank. The Company then tendered to FEBTC a check in the amount of PI,450,000.00 which FEBTC did not accept as payment but instead treated it as a deposit pending approval of the CB Liquidator. The check was cleared and honored. FEBTC’s contention correct? Decide the case.

Diaz Company obtained a loan from Pacific Bank amounting to P720,000.00 secured by a mortgage over its two (2) parcels of land. Diaz Company entered into a lease with Allied Bank where the latter shall pay its rentals directly to Pacific Bank which bank subsequently closed. Far East Bank and Trust Co. (FEBTC) later on purchased the credit of the Company from Pacific Bank. The Company then tendered to FEBTC a check in the amount of PI,450,000.00 which FEBTC did not accept as payment but instead treated it as a deposit pending approval of the CB Liquidator. The check was cleared and honored. FEBTC’s contention correct? Decide the case.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 3P

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